FAO RELEASES REPORT ON ONTARIO’S LABOUR MARKET IN 2024
TORONTO, April 24, 2025 – Today, the Financial Accountability Office of Ontario (FAO) released a report that reviews Ontario’s labour market performance in 2024.
Ontario’s labour market continued to moderate in 2024 with employment rising by 140,000 (1.7 per cent), down from 242,000 jobs (3.1 per cent) added in 2023 and record gains in 2021 and 2022.
Job creation did not keep pace with the increase in the number of people looking for work, causing the annual unemployment rate in Ontario to increase to 7.0 per cent in 2024, up from 5.6 per cent in 2023 and the highest since 2014 excluding the pandemic period.
Job gains in 2024 were recorded among core-aged workers, in service industries and in 9 out of the province’s 15 major cities. Across broader age groups, employment increased by 2.8 per cent for core-aged workers (aged 25-54), while employment declined modestly among youth (-0.6 per cent) and for older workers (-0.1 per cent).
Employment in the private sector increased by 1.0 per cent, slower than the 3.3 per cent rise in the public sector. Employment increased in 11 of the province’s 16 major industries, led by professional, scientific and technical services (up 63,100 or 7.5 per cent). The unemployment rate increased in all Ontario major cities, with the highest recorded in Windsor (8.3 per cent) and Toronto (8.0 per cent).
The average hourly wage of Ontarians increased 5.2 per cent to $36.44 in 2024, the third fastest pace on record back to 1998 and more than double the 2.4 per cent annual consumer price index (CPI) inflation rate. Wage growth was above the inflation rate for all major demographic groups and types of employment.
Find the full report on our website here.
Quick facts:
- 2024 marked the first time on record back to the mid-1970s that Ontario’s annual unemployment rate increased by more than one percentage point while employment was rising. In all other years when the unemployment rate increased by at least one percentage point, the economy was in a recession and experienced job losses.
- The labour force participation rate of youth fell to 59.7 per cent, down from 62.2 per cent in 2023 and the lowest on record excluding the pandemic period.
- Kitchener-Cambridge-Waterloo (6.5 per cent), Oshawa (2.8 per cent) and Ottawa (2.4 per cent) had the fastest pace of job creation in 2024. Barrie experienced the sharpest decline in employment (-2.8 per cent).
- Ontario’s employment growth (1.7 per cent) was the second slowest among all provinces and Ontario’s unemployment rate (7.0 per cent) was the third highest in the country.
- Job vacancies continued to trend lower, declining 24.4 per cent compared to the previous year, with fewer job vacancies in all industries except public administration.
About the FAO
Established by the Financial Accountability Officer Act, 2013, the Financial Accountability Office of Ontario (FAO) provides independent analysis on the state of the Province’s finances, trends in the provincial economy and related matters important to the Legislative Assembly of Ontario.
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For further information, please contact:
Sophia Zhu | 416 931 5498 | SZhu@fao-on.org | fao-on.org