Canadian university graduates retain wage advantage as full-time job prospects soften

Young university graduates in Canada continue to enjoy stronger earnings and better employment prospects than their less-educated counterparts, but securing permanent, full-time work has become slightly more challenging in recent years, a new study by Statistics Canada has found.

The study, released on October 28 in Insights on Canadian Society, found that 69% of non-student adults aged 25 to 34 with a bachelor's degree or higher were employed in permanent, full-time positions in 2025. This marked a decline from the peak of 71% recorded in 2022, when labour market conditions remained exceptionally tight in the later stages of the COVID-19 pandemic. However, the latest figure remains above the pre-pandemic average of 65% recorded between 2017 and 2019, indicating that employment prospects for young university graduates have largely remained stronger than before the pandemic.

University graduates also maintained an employment advantage over high school graduates and those without a high school qualification. While 71% of young adults with a trades certificate or diploma held permanent, full-time jobs, the corresponding proportions stood at 56% among high school graduates and 43% among those without a high school diploma.

Titled How are young Canadian university graduates faring in the recent labour market?, the study draws on annual Labour Force Survey data to examine employment stability, wages, collective bargaining coverage, access to employer-sponsored pension plans and overqualification. It also explores how gender and parenthood influence employment outcomes.

University graduates maintain a clear earnings advantage

Despite some moderation in employment prospects, a university degree continues to deliver a significant wage advantage in Canada's labour market.

In 2025, young adults aged 25 to 34 with a bachelor's degree or higher earned an average hourly wage of $39.18, substantially more than their counterparts with other educational qualifications. Those holding trades certificates or diplomas earned an average of $34.71 an hour, while graduates of community colleges, CEGEPs and equivalent institutions earned $31.39. The average hourly wage stood at $28.77 for high school graduates and $26.97 for those without a high school diploma. However, the study points to a slowdown in real wage growth among young university graduates in recent years. Although earnings rose during the early stages of the pandemic, inflation-adjusted wage increases have remained modest since then.

By 2025, real wages had edged slightly above their pre-pandemic levels, suggesting that the earnings gains made during the pandemic years have not translated into substantial improvements in purchasing power in the more recent period.

Gender employment gap narrows but pay inequality persists

Women have made progress in closing the employment gap with men, but the improvement has yet to translate into greater pay equality.

In 2025, 72% of young male university graduates were employed in permanent, full-time positions, compared with 66% of women in the same age and education group. Although the difference persisted throughout the study period, it narrowed over time, largely because women recorded stronger employment gains. The improvement was also evident among women raising young children.

Wage growth, however, offered little relief from the longstanding gender pay gap. Between 2019 and 2025, inflation-adjusted hourly wages increased by 2.5% among women and 1.8% among men aged 25 to 34 with a bachelor's degree or higher. Despite the slightly stronger growth among women, the overall wage disparity remained virtually unchanged. In 2025, women earned an average of 92 cents for every dollar earned by men, a ratio that has remained largely stable since 1997.

The findings highlight how improvements in women's employment participation have not been matched by comparable progress in closing the earnings gap.

Young children continue to influence women's career prospects

Parenthood remains another important factor shaping employment outcomes, with young mothers facing greater challenges in securing permanent, full-time work than women without young children.

In 2025, only 62% of female university graduates aged 25 to 34 with a child aged six or younger at home held permanent, full-time jobs. The proportion was higher, at 67%, among women without young children. No comparable employment difference was observed among men, suggesting that the presence of young children continues to affect women's working lives more significantly.

The findings point to the unequal employment pressures faced by young parents, particularly women, even when they hold similar educational qualifications.

Union coverage and pension access remain largely stable

The study also found little change in the proportion of young university graduates covered by collective bargaining agreements in recent years.

In 2025, 25% of women and 15% of men aged 25 to 34 with a bachelor's degree or higher were covered by such agreements. Access to employer-sponsored pension plans, however, recorded a modest improvement after 2020. By 2025, coverage had reached 60% among women and 56% among men. Overqualification also remained relatively unchanged, with 14% of young female university graduates and 15% of their male counterparts employed in jobs that typically require no postsecondary education. The findings suggest that while higher education continues to provide young Canadians with an advantage in earnings and access to stable employment, a degree alone does not guarantee career progression, job security or equal opportunities.

Persistent gender disparities, the employment challenges faced by young mothers and the prevalence of overqualification remain important concerns as Canada's labour market continues to evolve.