In Canada today, conversations about the future of work are more urgent than ever. Recent polling from Angus Reid shows widespread concern about the spectre of job losses across all demographics. The demographic that is most acutely feeling this is those 18-24, whose concern over the prospect of unemployment has more than quadrupled since the end of 2022. At that time, polling showed that unemployment was a top concern for only 8 percent of that demographic. Now, it stands at a whopping 37 percent.
Youth are not alone in this apprehension. Forty percent of all Canadians fear that they, or someone in their household, may find themselves out of a job. These fears are compounded by the pressure of a widening skills gap, one that’s growing as artificial intelligence and new technologies change our job market. While these innovations open exciting doors, they’re also making some traditional jobs disappear, and our old “learn to earn” career paths are struggling to keep up. For students, finding a clear route to a rewarding career often feels confusing, and employers are having a tough time finding the skilled people they need.
The impact is not just personal, it’s economic. Recent analysis from Pearson shows just how costly these career transitions are. Whether it’s moving from education into employment, switching jobs unexpectedly, or navigating automation-driven changes, these moments add up to an estimated $146.2 billion dollars in lost wages each year, about 4.8 percent of Canada’s GDP for 2024. The math to address this is simple: Shorten the time it takes to move between education and employment, and we can save billions. But to do that, we need to fundamentally rethink how we prepare Canadians for work.
Of all the transitions, automation-driven job losses pose the biggest risk, amounting to $111 billion CND of those losses. Since 2019, jobs exposed to AI in Canada have jumped by 108 percent, and more than half (56.1 percent) of businesses report significant skills gaps among their staff. It’s not just service jobs feeling the squeeze; new grads in fields like finance and computer science are also seeing higher unemployment as AI becomes more capable.
Entry-level positions, like junior developer, marketing analyst, and research assistant, are especially vulnerable. With AI getting smarter, some companies may skip hiring for these roles altogether, changing what early careers look like across industries. This shift makes it even more urgent to invest in reskilling and helping our workforce adapt.
Still, there’s hope. Integrating AI and other technologies into education can help us close the skills gap. These tools can tailor learning to each student’s needs, highlight where extra support is needed, and offer instant feedback. This approach helps students build the critical thinking, problem-solving, and digital skills that today’s employers value most.
To keep pace, our education system needs reform. Traditional models that focus on memorization and standardized tests aren’t enough anymore. Instead, we should offer flexible, efficient learning paths that match the realities of modern careers. Think jungle gym, not career ladder. Lifelong learning is key, with opportunities for people to jump in and out as needed. Apprenticeships, mentorships, and a shared language around skills will help us communicate what we know to employers. By mixing formal education, vocational training, and online platforms, we can empower Canadians to chart their own career growth.
To make this a reality, governments need to boost funding for vocational training so every young Canadian can access it. That means modern facilities, up-to-date programs, and financial support for students. Partnerships between government, schools, and businesses are essential too, working together to design training that meets real job market needs.
Pearson is ready to help and has the tools and expertise to assist governments in facilitating this shift over the entirety of a learner’s life. Our K-12 and higher education products provide exceptional value to students in formal education, integrating AI and drawing on experts across academia, creating personalized and engaging learning experiences at scale, and improving how we learn.
Beyond school, outside of formal education, our suite of Enterprise Learning and Skills products allows us to identify skills gaps in workforces, provide the training needed to close those gaps, and allow learners to certify their new skillsets. These tools form the backbone of our efforts to reimagine learning, for the benefit of learners and employers.
Pearson also supports people across Canada learn English with our English Language Learning portfolio. Recognizing English as essential for success in an AI-driven world, our AI-powered language learning solutions help people build confidence and unlock global career opportunities.
Ultimately, solving these challenges will take teamwork. Disruption is now the norm, and a holistic approach by all actors in the educational and employment ecosystem is an urgent priority. By making “learning to learn” a priority and building clear, effective skills pathways, we can transform Canada’s workforce and unlock billions in value to benefit all Canadians.
