New CFIB report highlights disconnect between young workers' expectations and small businesses' hiring realities
OTTAWA, ON, May 20, 2026 /CNW/ - A new report by the Canadian Federation of Independent Business (CFIB) finds fundamental disconnects at every stage of the hiring process: how employers and youth search for each other, what they expect from a job, which roles young people are willing to take, and what skills employers actually need. The report is based on a survey of small business owners and a special poll of Canadian youth.
Nearly two-thirds (62%) of small businesses recruit through personal connections-- referrals from people they trust. Meanwhile, three in four youth (73%) search primarily through online job boards and only around half tap into their personal networks. This mismatch means opportunities are circulating in places youth aren't actively looking. Co-op and internship programs, which convert to permanent hires at a 73% rate, are used by a quarter of youth but only one in five small businesses, highlighting a missed opportunity for businesses to access job-ready youth.
"We have two groups – employers and young job seekers – who are increasingly out of sync right now," said Molly MacCormack, CFIB policy analyst. "Small businesses hire through trusted networks and look for soft skills, while many youth focus on online postings potentially overlooking the available roles that businesses need. As a result, they're missing each other and fueling high youth unemployment numbers."
When hiring youth, small businesses rank soft skills, like positive attitude (91%), motivation (84%), and professionalism (76%) above credentials, experience, or education. These are exactly the qualities most visible in service, trades, and physical roles, yet those are precisely the jobs many young Canadians are ruling out. Nearly half won't consider jobs requiring heavy physical effort or overnight shifts. Nearly two in five won't consider outdoor work.
"The reality is there are jobs out there that young Canadians just don't want, can't do, or won't do," said Bérengère Fouqueray, CFIB research analyst. "Whether it's a resort in northern B.C. or a restaurant in rural New Brunswick, businesses need workers to keep operating and support their local economies. Many young people aren't able or willing to relocate, or take on the shifts required, especially if they are in school. Leaving these roles unfilled could be the difference between staying open or closing the doors for good."
Small businesses are also operating in a sluggish economic environment. Tight margins and ongoing uncertainty make it harder to bring on new, inexperienced workers. And while most small firms pay above the provincial minimum wages of $15 to $18 per hour, more than one-third of youth say they wouldn't consider a minimum wage job. CFIB's findings point to the often-overlooked costs of entry-level hiring, particularly the time and resources required for training.
"Today's hiring environment is far more constrained for small businesses," said Fouqueray. "Given the current economic pressures, small businesses are hesitant to grow their teams and are being much more cautious about bringing on new staff."
More than two-thirds of small businesses are also unaware that government hiring supports even exist. Those who find them describe application processes that are onerous, poorly timed, and disconnected from how small businesses actually operate.
"Young workers need more training and hands-on management, which takes time away from running the business," added MacCormack. "That time has a real cost, and any policy that seeks to address youth unemployment needs to acknowledge it."
CFIB is calling on governments to cut payroll taxes, introduce permanent refundable tax credits for co-op and internship hires, and cut the red tape from programs like Canada Summer Jobs.
"Small businesses owners are proud to often be the ones to give young people their first jobs, and we don't want to lose that," said Fouqueray. "Bridging the expectation gap means young people can continue to get valuable workplace experience, and businesses get the workers they need."
Read the full report, Work in Progress: Bridging the gap between small businesses and Canada's youth.
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada's largest association of small and medium-sized businesses with 103,000 members across every industry and region. CFIB is dedicated to increasing business owners' chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
SOURCE Canadian Federation of Independent Business (Toronto)
For media enquiries or interviews, please contact: Dariya Baiguzhiyeva, CFIB, 647-464-2814, [email protected]
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