Bank of Canada Governor Tiff Macklem says artificial intelligence may already be affecting Canada’s job market by reducing the number of entry-level positions available to young workers. Speaking in Toronto, Macklem described AI as a transformative technology that could improve productivity and raise living standards, but warned that it may also replace routine work traditionally done by junior employees.

He noted there is growing evidence that industries where tasks can easily be automated by AI are becoming harder for new graduates and young professionals to enter. While AI-related roles and technical skills remain in demand, youth unemployment may rise as companies become more cautious about hiring.

Macklem also highlighted broader economic pressures affecting Canada, including slowing population growth and changing trade relations with the United States. Ongoing U.S. tariffs and protectionist policies are reshaping supply chains, while lower immigration levels are slowing labour force growth.

For the Canadian job market, the message is clear: businesses are expected to hire more cautiously in the near term, while workers with skills in AI, technology, and specialized industries may have stronger long-term opportunities.

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Uday Rana’s original article, “AI may be killing entry-level jobs, Bank of Canada governor warns” was published in Global News on February 5, 2026. Read the Full Global News story.

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