Facing the Grad Hiring Crisis Head-On: How HR Can Lead the Way

The numbers don’t lie: Canada’s graduate job market is in trouble. Unemployment for new grads under 25 has jumped to 11.2%, making it the most challenging environment for young job seekers in more than two decades. As hiring slows across many sectors and entry-level roles shrink, recent graduates are entering the workforce at a serious disadvantage.

For HR professionals, this isn’t just an unfortunate statistic. It’s a moment to rethink how we bring early-career talent into our organizations and why it matters more than ever.

The Entry-Level Dilemma

Despite graduating with credentials and enthusiasm, many young Canadians are struggling to find their first foot in the door. Fewer internships, longer hiring timelines and increased competition for junior roles mean grads are left in limbo. But the solution isn’t to wait for the job market to improve. It’s to build better, more accessible pathways into work.

What HR Can Do — Starting Now

Rather than viewing entry-level hiring as a sunk cost or risk, forward-thinking companies can treat it as a strategic investment. Here are four key ways HR teams can respond:

1. Introduce Paid Internships

Unpaid internships are no longer acceptable. Paid, structured internships signal your organization values early-career talent and is committed to developing it. They also help you assess fit and potential without long-term risk.

2. Streamline and Strengthen Onboarding

Recent grads need a fast start. A clear, supportive onboarding process helps them feel connected and productive quickly, which benefits both performance and retention. Build in touchpoints, feedback loops and exposure to different teams early.

3. Create Mentorship Opportunities

Mentorship helps grads build confidence and understand workplace culture. Pairing them with experienced employees accelerates growth, fosters inclusion and builds meaningful relationships across generations.

4. Partner with Post-Secondary Institutions

Get ahead of the hiring curve by collaborating directly with colleges and universities. Co-op programs, job fairs, curriculum input and micro-credential partnerships can help you access talent while supporting real-world learning.

Why It Matters

Today’s graduates are tomorrow’s leaders. If we fail to support them now, we risk long-term gaps in our workforce and missed opportunities to innovate and evolve. But organizations that invest in grads, even in tough times, will reap the benefits of loyalty, diversity of thought and fresh perspective.

HR leaders can play a vital role in reshaping the entry-level experience. The question is: will your organization be one that builds the bridge or watches the talent pool drift away?

Need support designing early-career programs that work?

We help HR teams create internship, onboarding and mentorship strategies that attract and retain the next generation. Contact us to get started.