TORONTO, April 29, 2026 – Today, the Financial Accountability Office of Ontario (FAO) released a report that reviews Ontario’s labour market performance in 2025.
Ontario’s labour market continued to moderate in 2025, with employment rising by 80,900 (1.0 per cent), down from 140,000 jobs (1.7 per cent) added in 2024 and the slowest pace of job creation since 2015 excluding the pandemic.
Job creation did not keep pace with the increase in the number of people looking for work, causing Ontario’s unemployment rate to increase to 7.7 per cent in 2025, up from 7.0 per cent in 2024 and the highest unemployment rate since 2012 excluding the pandemic.
Job gains in 2025 were recorded among core-aged workers and youth, in eight out of 16 major industries and in 12 out of the province’s 15 major cities. Across broader age groups, employment increased by 1.0 per cent for core-aged workers (aged 25-54) and 2.5 per cent for youth (aged 15-24), while employment among older workers (aged 55 and over) was little changed.
Employment in the private sector grew by 1.4 per cent in 2025, while employment in the public sector declined by 0.1 per cent, partly reflecting the downsizing of the federal public-sector workforce and lower international student enrolment, which affected employment in the public administration and education sectors. Job losses were recorded in industries highly affected by US tariffs, including manufacturing (-8,400), agriculture (-6,400), and transportation and warehousing (-3,700). The unemployment rate increased in almost all major cities in Ontario, with the highest rates recorded in Windsor (9.7 per cent), Oshawa (8.7 per cent) and Toronto (8.6 per cent).
The average hourly wage of Ontarians increased 3.5 per cent to $37.72 in 2025, faster than the 1.9 per cent annual consumer price index (CPI) inflation rate. Wage growth was above the inflation rate for all major groups of workers, in 12 out of 16 industry groups and for 28 out of 34 occupations.
Find the full report on our website here.
Quick facts:
- During the 2024-2025 period, Ontario’s youth unemployment rate averaged 9.6 percentage points higher than that of core-aged workers, the second largest two-year gap on record back to 1976 excluding the pandemic.
- Ontario’s employment growth (1.0 per cent) was the third slowest among the provinces, and Ontario’s unemployment rate (7.7 per cent) was the third highest in the country.
- Ontario’s employment rate declined from 60.7 per cent in 2024 to 60.0 per cent in 2025, the lowest since 1996 excluding the pandemic.
- Among Ontario’s major cities, Peterborough (6.0 per cent) had the fastest pace of job creation, followed by Greater Sudbury (5.8 per cent) and Oshawa (3.1 per cent). In contrast, Guelph experienced the sharpest decline in employment (-5.3 per cent).
- Job vacancies continued to trend lower in 2025 and the overall job vacancy rate fell from 2.9 per cent in 2024 to 2.6 per cent in 2025. Among Ontario’s major industries, health care and social assistance had the highest number of job vacancies (36,500) for the fourth year in a row and the highest job vacancy rate (4.0 per cent).
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 l 416 931 5498 l SZhu@fao-on.org l fao-on.org