Young Canadians are increasingly struggling to keep up with debt payments, a trend magnified in Alberta where joblessness and delinquency rates are rising faster than the national average.

Equifax Canada data shows Canadians aged 18 to 25 are falling behind on debt obligations at a growing pace. Nationally, credit card delinquencies of 90 days or more among young borrowers climbed more than 20 per cent year-over-year, while auto loan delinquencies surged 30 per cent. In total, about 1.4 million Canadians missed a credit payment in the second quarter of 2025, underscoring the scale of financial strain.

The picture is especially stark in Alberta. In the second quarter of 2025, the province’s non-mortgage delinquency rate reached 1.98 per cent—well above the national average—with Edmonton, Calgary and Fort McMurray posting even higher increases. Year-over-year, Alberta’s delinquency rate rose 25.5 basis points, marking one of the steepest provincial jumps. Earlier TransUnion data also identified Alberta as having the highest delinquency rate in the country at 2.21 per cent.

Household debt loads remain significant. The average non-mortgage balance for Albertans stands above $24,500, while delinquency rates continue to trend upward. Though mortgage delinquencies remain below levels seen in Ontario and British Columbia, the upward movement in consumer credit troubles signals increasing financial stress.

Labour market weakness is compounding the problem. Alberta’s unemployment rate rose sharply to 7.8 per cent in July 2025, up from 6.8 per cent the previous month, the largest monthly increase among provinces. The provincial rate has climbed steadily from 7.1 per cent in April, reflecting deteriorating labour conditions.

Nationally, the unemployment rate held near seven per cent in midsummer, with the ratio of unemployed persons to available jobs at its highest level since 2017. Nearly one in four unemployed Canadians have been without work for 27 weeks or longer, a figure not seen since the late 1990s outside of the pandemic years. Employment Insurance usage has also grown, with more than half a million Canadians drawing benefits in June, up nearly 13 per cent from the previous year.

Together, rising delinquencies and job losses are widening the divide between Canadians able to withstand higher costs of living and those increasingly falling behind. In Alberta, where unemployment is accelerating and delinquency rates are the highest in the country, the pressures on young borrowers are particularly acute.