Ontario’s Labour Market in 2024

Publish date: April 24, 2025 ISBN 978-1-4868-8965-5
This report reviews Ontario’s labour market performance in 2024.
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About this Document

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.

Prepared by: Jay Park and Yefei Zhang under the direction of Paul Lewis.

The content of this report is based on information available to March 18, 2025. Background data used in this report are available upon request.

In keeping with the FAO’s mandate to provide the Legislative Assembly of Ontario with independent economic and financial analysis, this report makes no policy recommendations.

© King’s Printer for Ontario, 2025

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Ontario’s Labour Market in 2024, Financial Accountability Office of Ontario, 2025.
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Summary

This report provides a review of Ontario’s labour market performance in 2024. It presents a summary of the overall labour market in the province, and information for demographic groups, industries, occupations, major cities, other provinces and wage growth compared to inflation.

Ontario’s labour market continued to moderate in 2024

Most groups of workers saw job gains

Job vacancies trended lower in 2024

Unemployment rate increased in all Census Metropolitan Areas and all provinces

Wage growth in Ontario outpaced inflation in 2024 for most groups of workers

Ontario’s labour market continued to moderate in 2024

The pace of Ontario’s job creation 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.[1] Job gains in 2024 were recorded among core-aged workers, in service industries and in nine out of the province’s 15 major cities.

Figure 1 Ontario gained 140,000 jobs in 2024

Source: Statistics Canada: Labour Force Survey: Table 14-10-0327-01

Accessible version
Year Change in Employment
(Thousands)
2015 39.3
2016 71.8
2017 174.7
2018 131.2
2019 172.5
2020 -369.5
2021 361.4
2022 359.3
2023 242.0
2024 140.0
Average 132.3

Job creation did not keep pace with the increase in the number of people looking for work, causing Ontario’s annual unemployment rate 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). This 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.

Figure 2 Unemployment rate in Ontario increased in 2024

Source: Statistics Canada: Labour Force Survey: Table 14-10-0327-01

Accessible version
Year Unemployment Rate
(Per Cent)
2015 6.8
2016 6.6
2017 6.1
2018 5.7
2019 5.5
2020 9.8
2021 8.1
2022 5.6
2023 5.6
2024 7.0
Average 6.7

Ontario’s labour force participation rate[2] declined modestly from 65.6 per cent in 2023 to 65.3 per cent in 2024 as labour force growth (3.2 per cent) trailed the increase in Ontario’s population aged 15 years and older (3.8 per cent[3]).

Figure 3 Ontario’s labour force participation rate trended down in 2024

Source: Statistics Canada: Labour Force Survey: Table 14-10-0327-01

Accessible version
Year Labour Force Participation Rate
(Per Cent)
2015 65.3
2016 65.0
2017 65.2
2018 64.9
2019 65.2
2020 63.7
2021 65.2
2022 65.4
2023 65.6
2024 65.3
Average 65.1

Core-aged workers experienced strong job gains while young and older male workers saw job losses

In 2024, job gains were concentrated among core-aged workers (aged 25-54), while employment declined for youth (aged 15-24) and older workers (aged 55 years and over). Among both younger and older workers, all the job losses[4] were experienced by males.

Core-aged workers experienced employment growth of 2.8 per cent in 2024, with job gains for males (3.1 per cent) modestly faster than for females (2.5 per cent). The employment rate[5] and labour force participation rate of core-aged workers declined in 2024 to 83.0 per cent and 88.1 per cent, respectively, after reaching record highs in 2023 of 84.1 per cent and 88.2 per cent.

Employment among older workers declined by 0.1 per cent, as job losses by older males (-0.6 per cent) were larger than gains by older females (0.4 per cent). Industries with the largest job losses among older male workers were construction (-8,300) and manufacturing (-7,200),[6] as those sectors experienced lower output in 2024.

Youth employment declined by 0.6 per cent, as female youth job growth of 1.1 per cent was outweighed by a 2.2 per cent decline in male youth employment. The drop in male youth employment was led by a combined 17,900 fewer positions in wholesale and retail trade, accommodation and food services, and construction industries, which together employed over half of young male workers in 2024.[7] 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. Ontario youth had the lowest labour participation rate among the provinces in 2024 and have been below the Canada average since 2003.

The unemployment rate of core-aged workers increased from 4.7 per cent in 2023 to 5.8 per cent in 2024, while for young workers the unemployment rate increased by 3.2 percentage points to 15.7 per cent, the highest since 2012 excluding the pandemic. Older workers saw their unemployment rate increase from 4.1 per cent in 2023 to 4.7 per cent in 2024.

Table 1 Summary of labour market outcomes for demographic groups Source: Statistics Canada: Labour Force Survey: Table 14-10-0327-01.
Age and Gender Annual Employment Change in 2024
(Thousands)
Annual Employment Change in 2024
(Per Cent)
Unemployment Rate
(Per Cent)
2022 2023 2024
Youth (15-24 years) -6.5 -0.6 11.4 12.5 15.7
Males -11.7 -2.2 12.4 12.7 17.6
Females 5.2 1.1 10.4 12.2 13.6
Core (25-54 years) 148.8 2.8 4.6 4.7 5.8
Males 85.5 3.1 4.3 4.4 5.9
Females 63.3 2.5 4.9 5.0 5.7
Older (55 years and over) -2.2 -0.1 4.6 4.1 4.7
Males -5.7 -0.6 4.5 4.2 4.9
Females 3.4 0.4 4.7 4.0 4.5
Total 140.0 1.7 5.6 5.6 7.0

Ontario saw job gains across most types of employment categories

Employment grew across all major categories except for temporary workers. Employment in full-time positions (1.2 per cent) grew at a slower pace in 2024 than part-time positions (4.5 per cent), as both youths and older workers experienced job losses in full-time employment that were partially offset by job gains in part-time employment.

Employment in the private sector increased by 1.0 per cent, slower than the 3.3 per cent rise in the public sector in 2024. The post-pandemic period has seen strong gains in public sector employment, notably in health care, educational services and public administration. As a result, the share of public sector workers in total employment reached 19.9 per cent in 2024, the highest since 1994.

The number of self-employed Ontarians increased by 3.1 per cent in 2024, after declining by 6.1 per cent over the 2020 to 2023 period. As a result, self-employment in Ontario in 2024 was 3.1 per cent below its 2019 pre-pandemic level.

Employment growth in permanent positions (1.8 per cent) outpaced temporary jobs (-0.2 per cent), and the share of workers in permanent positions remained at a record high of 77.0 per cent in 2024.

Table 2 Summary of labour market outcomes by type of employment and class of workers * Paid employment does not include the self-employed. Source: Statistics Canada: Labour Force Survey: Tables 14-10-0327-01, 14-10-0027-01 and 14-10-0072-01.
Job Category Annual Employment Change in 2024
(Thousands)
Annual Employment Change in 2024
(Per Cent)
Type of Employment
Full-time 78.6 1.2
Part-time 61.3 4.5
Class of Workers
Private 54.4 1.0
Public 52.1 3.3
Self-employed 33.5 3.1
Job Permanency of Paid Employment*
Permanent 108.4 1.8
Temporary -1.9 -0.2
Total 140.0 1.7

Over half of Ontario’s industries saw job growth

Of the 16 major industries in Ontario, 11 saw an increase in employment in 2024. Professional, scientific and technical services recorded the largest increase in employment (63,100 or 7.5 per cent), followed by health care and social assistance (26,000 or 2.7 per cent) and educational services (25,700 or 4.4 per cent). At the opposite end, construction saw the largest decrease in employment (-26,500 or -4.4 per cent), reflecting a steep decline in housing starts. Other notable job losses were recorded in wholesale and retail trade (-13,600 or -1.2 per cent) and agriculture (-5,600 or -7.2 per cent).

Table 3 11 out of 16 major industries saw job gains in 2024 Source: Statistics Canada: Labour Force Survey: Table 14-10-0023-01.
Industry Annual Employment Change in 2024
(Thousands)
Annual Employment Change in 2024
(Per Cent)
Professional, scientific and technical services 63.1 7.5
Health care and social assistance 26.0 2.7
Educational services 25.7 4.4
Finance, insurance, real estate, rental and leasing 23.9 3.5
Transportation and warehousing 19.8 4.9
Other services 16.4 6.0
Business, building and other support services 9.6 3.4
Public administration 9.4 2.0
Manufacturing 1.7 0.2
Information, culture and recreation 0.1 0.0
Forestry, fishing, mining, quarrying, oil and gas 0.1 0.2
Accommodation and food services -5.0 -1.2
Utilities -5.0 -7.8
Agriculture -5.6 -7.2
Wholesale and retail trade -13.6 -1.2
Construction -26.5 -4.4

While Ontario’s total employment compared to the 2019 pre-pandemic level has increased by 733,200 jobs (9.9 per cent), not all industries have experienced gains. Industries with lower employment in 2024 compared to 2019 include accommodation and food services (-37,100 or -8.1 per cent), business, building and other support services (-18,700 or -6.0 per cent), agriculture (-2,800 or -3.8 per cent) and other services[8] (-1,300 or -0.4 per cent).

Job vacancies trended lower in 2024

In tandem with the slower pace of employment gains, job vacancies declined by 64,100 (24.4 per cent) in 2024, and the overall job vacancy rate[9] fell from 3.8 per cent in 2023 to 2.9 per cent in 2024. Job vacancies have been declining steadily since the second quarter of 2022, and the unemployment-to-job vacancy ratio[10] increased from 1.8 in 2023 to 3.1 in 2024, indicating softer labour market conditions.

Job vacancies in 2024 declined in all industries except public administration. Of the 16 major industries in Ontario, health care and social assistance had the highest number of job vacancies (44,200) and the highest job vacancy rate (5.0 per cent), followed by wholesale and retail trade (25,500) and accommodation and food services (19,800). Utilities had the lowest number of job vacancies (800), while educational services had the lowest job vacancy rate (1.5 per cent).

Table 4 Job vacancies declined in all but one industry in 2024 Source: Statistics Canada: Job Vacancy and Wage Survey: Table 14-10-0442-01.
Industry Annual Change in Job Vacancies in 2024
(Thousands)
Job Vacancies in 2024
(Thousands)
Job Vacancy Rate in 2024
(Per Cent)
Wholesale and retail trade -11.4 25.5 2.3
Accommodation and food services -9.5 19.8 3.9
Health care and social assistance -7.4 44.2 5.0
Business, building and other support services -7.3 13.9 3.2
Construction -6.2 11.2 2.7
Manufacturing -5.8 13.3 1.9
Information, culture and recreation -3.8 6.8 2.5
Transportation and warehousing -2.8 10.2 3.2
Other services -2.7 8.4 3.9
Finance, insurance, real estate, rental and leasing -2.5 12.1 2.3
Professional, scientific and technical services -2.2 15.5 2.8
Educational services -1.0 8.4 1.5
Agriculture, forestry, fishing, hunting -0.7 2.6 3.9
Utilities -0.6 0.8 1.6
Mining, quarrying, and oil and gas extraction -0.2 0.9 2.8
Public administration 0.0 5.1 2.2
All Industries -64.1 198.6 2.9

Unemployment rate increased in all Census Metropolitan Areas

Employment increased in nine out of the 15 census metropolitan areas (CMAs) in Ontario in 2024.[11] Kitchener-Cambridge-Waterloo (6.5 per cent) had the fastest pace of job creation, particularly in construction and professional, scientific and technical services.[12] Job gains above the provincial increase were also recorded in Oshawa (2.8 per cent), Ottawa (2.4 per cent), Windsor (2.1 per cent), Hamilton (2.0 per cent) and London (1.9 per cent). In contrast, Barrie experienced the sharpest decline in employment (-2.8 per cent) with job losses concentrated in construction, manufacturing, and accommodation and food services. Employment also declined in Peterborough (-1.6 per cent), Greater Sudbury (-1.3 per cent), Thunder Bay (-0.6 per cent) and Guelph (-0.6 per cent).

The unemployment rate increased in all Ontario CMAs. Across the CMAs, the highest unemployment rates in 2024 were recorded in Windsor (8.3 per cent), Toronto (8.0 per cent) and St. Catharines-Niagara (7.5 per cent). The lowest unemployment rate was recorded in Thunder Bay (4.3 per cent), followed by Peterborough (4.8 per cent) and Guelph (5.0 per cent).

Table 5 Nine out of 15 CMAs saw job gains in 2024 Source: Statistics Canada: Labour Force Survey: Table 14-10-0461-01.
Census Metropolitan Area Annual Employment Change in 2024
(Per Cent)
Unemployment Rate
(Per Cent)
2022 2023 2024
Kitchener-Cambridge-Waterloo 6.5 5.7 6.0 7.2
Oshawa 2.8 5.2 5.6 6.8
Ottawa-Gatineau, Ontario part 2.4 4.2 4.5 5.7
Windsor 2.1 7.3 6.2 8.3
Hamilton 2.0 4.9 5.4 6.8
London 1.9 5.7 5.2 6.6
Toronto 1.6 6.3 6.3 8.0
Brantford 1.1 5.1 4.6 5.4
St. Catharines-Niagara 0.2 5.2 5.8 7.5
Kingston 0.0 5.5 4.7 6.3
Guelph -0.6 4.2 4.5 5.0
Thunder Bay -0.6 4.8 4.1 4.3
Greater Sudbury -1.3 4.1 4.9 5.5
Peterborough -1.6 4.5 4.6 4.8
Barrie -2.8 5.5 4.8 6.1

Unemployment rate increased in all provinces

All provinces experienced job gains in 2024. Prince Edward Island had the fastest pace of job creation (3.6 per cent) for the third year in a row, while Quebec’s employment growth (1.0 per cent) was the slowest. Ontario’s employment growth (1.7 per cent) was the second slowest among all provinces and the lowest rank since 2009.

In 2024, the unemployment rate increased in all provinces. Newfoundland and Labrador continued to have the highest unemployment rate among the provinces (10.0 per cent), while Quebec had the lowest (5.3 per cent). Ontario recorded the third highest (7.0 per cent) unemployment rate in the country, tied with Alberta and New Brunswick. This marked Ontario’s highest provincial unemployment rate ranking on record.

Table 6 Ontario recorded the second slowest pace of job gains among all provinces in 2024 Source: Statistics Canada: Labour Force Survey: Table 14-10-0327-01.
Province Annual Employment Change in 2024
(Per Cent)
Unemployment Rate
(Per Cent)
2022 2023 2024
Prince Edward Island 3.6 7.7 7.2 8.0
Nova Scotia 3.2 6.6 6.4 6.5
Alberta 3.1 5.8 5.9 7.0
New Brunswick 2.9 7.2 6.6 7.0
Newfoundland and Labrador 2.8 11.3 9.9 10.0
Saskatchewan 2.6 4.6 4.7 5.4
Manitoba 2.5 4.5 4.9 5.4
British Columbia 2.3 4.6 5.2 5.6
Ontario 1.7 5.6 5.6 7.0
Quebec 1.0 4.3 4.5 5.3
Canada 1.9 5.3 5.4 6.3

Wage growth in Ontario outpaced inflation in 2024

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 CPI inflation rate. Ontario’s average hourly wage gains exceeded the CPI inflation rate in 2023 and 2024, after trailing inflation in 2021 and 2022.

Figure 4 Average hourly wage growth outpaced inflation in 2024

Source: Statistics Canada: Labour Force Survey: Table 14-10-0064-01 and Consumer Price Index: Table 18-10-0005-01

Accessible version
Year Annual Growth in Average Hourly Wage Rate
(Per Cent)
Annual CPI Inflation
(Per Cent)
2015 2.9 1.2
2016 2.7 1.8
2017 0.9 1.7
2018 3.8 2.4
2019 2.8 1.9
2020 6.7 0.7
2021 2.5 3.5
2022 4.1 6.8
2023 5.0 3.8
2024 5.2 2.4
Average 3.7 2.6

Wage growth was above the 2.4 per cent inflation rate for all major groups of workers. Wages for part-time employees increased by 6.7 per cent, above the 5.2 per cent growth among full-time workers. Wages for temporary workers increased by 5.1 per cent, similar to the 5.2 per cent gain among permanent workers. Across the broader age groups, youth saw the fastest average wage gains of 5.9 per cent, followed by older workers (5.7 per cent) and core-aged workers (4.7 per cent). Average wage growth for male workers (5.5 per cent) outpaced that for female workers (4.9 per cent).

Figure 5 Average hourly wage growth was above inflation for all major groups in 2024

Source: Statistics Canada: Labour Force Survey: Tables 14-10-0064-01 and 14-10-0066-01

Accessible version
Annual Growth in Average Hourly Wage Rate
(Per Cent)
Annual CPI Inflation
(Per Cent)
Type of Employment Full-time 5.2 2.4
Part-time 6.7
Permanent 5.2
Temporary 5.1
Age 15 to 24 5.9
25 to 54 4.7
55+ 5.7
Gender Females 4.9
Males 5.5

Wage growth in majority of industries and occupation groups exceeded inflation

Of the 16 major industry groups, 14 industries saw their average hourly wage rate increase faster than inflation. Utilities, the group with the highest average hourly wage rate among all industries, recorded the strongest annual wage growth (12.6 per cent). The second highest wage growth (7.0 per cent) was in professional, scientific and technical services, which had the second highest average hourly wage rate among all industries as well as the largest increase in employment in 2024. Workers in agriculture and business, building and other support services, which had some of the lowest average hourly wage rates among all industries, saw their average hourly wage rates decline in 2024.

Table 7 Average hourly wage rate in two industries declined in 2024 Source: Statistics Canada: Labour Force Survey: Table 14-10-0064-01.
Industry Average Hourly Wage Rate in 2024
($)
Annual Change in Average Hourly Wage Rate in 2024
(Per Cent)
Utilities 57.13 12.6
Professional, scientific and technical services 49.67 7.0
Other services 31.17 6.5
Health care and social assistance 34.41 5.9
Accommodation and food services 20.49 5.3
Transportation and warehousing 33.24 5.1
Wholesale and retail trade 28.07 5.0
Public administration 46.65 4.6
Construction 37.49 4.5
Manufacturing 34.74 4.5
Finance, insurance, real estate, rental and leasing 44.99 4.0
Forestry, fishing, mining, quarrying, oil and gas 46.40 4.0
Information, culture and recreation 33.40 3.9
Educational services 41.24 3.4
Business, building and other support services 26.19 -1.4
Agriculture 24.54 -4.6
Total employees, all industries 36.44 5.2

Across 34 different occupation groups, the average hourly wage for 24 occupations increased above inflation in 2024. Those with the strongest wage growth were professional occupations in art and culture (15.3 per cent), middle management occupations in retail and wholesale trade and customer services (13.7 per cent), and middle management occupations in trades, transportation, production and utilities (7.2 per cent). Average hourly wages in three groups declined in 2024, including occupations (-13.4 per cent) and support occupations (-2.2 per cent) in art, culture and sport, and workers and labourers in natural resources, agriculture and related production (-3.0 per cent).

Table 8 Average hourly wage rate by occupation Source: Statistics Canada: Labour Force Survey: Table 14-10-0417-01.
National Occupational Classification (NOC) Average Hourly Wage Rate in 2024
($)
Annual Change in Average Hourly Wage Rate in 2024
(Per Cent)
Management occupations 63.70 6.8
Legislative and senior management occupations 96.75 3.3
Specialized middle management occupations 65.95 5.6
Middle management occupations in retail and wholesale trade and customer services 51.99 13.7
Middle management occupations in trades, transportation, production and utilities 59.48 7.2
Business, finance and administration occupations except management 35.09 3.2
Professional occupations in finance and business 44.85 2.7
Administrative and financial supervisors and specialized administrative occupations 35.27 2.6
Administrative occupations and transportation logistics occupations 30.69 2.1
Administrative and financial support and supply chain logistics occupations 25.66 3.3
Natural and applied sciences and related occupations except management 47.89 4.5
Professional occupations in natural and applied sciences 52.80 5.2
Technical occupations related to natural and applied sciences 36.27 4.9
Health occupations except management 36.77 6.0
Professional occupations in health 45.60 6.3
Technical occupations in health 36.55 6.2
Assisting occupations in support of health services 24.96 4.6
Occupations in education, law and social, community and government services except management 41.43 2.6
Professional occupations in law, education, social, community and government services 47.26 2.4
Front-line public protection services and paraprofessional occupations in legal, social, community, education services 32.61 4.5
Assisting occupations in education and in legal and public protection 29.67 1.3
Care providers and public protection support occupations and student monitors, crossing guards and related occupations 22.23 5.3
Occupations in art, culture, recreation and sport except management 30.04 2.2
Professional occupations in art and culture 41.45 15.3
Technical occupations in art, culture and sport 34.10 2.8
Occupations in art, culture and sport 23.46 -13.4
Support occupations in art, culture and sport 21.20 -2.2
Sales and service occupations except management 23.51 5.9
Retail sales and service supervisors and specialized occupations in sales and services 29.60 5.4
Occupations in sales and services 26.45 4.4
Sales and service representatives and other customer and personal services occupations 24.56 5.8
Sales and service support occupations 19.06 5.5
Trades, transport and equipment operators and related occupations except management 31.48 2.4
Technical trades and transportation officers and controllers 36.52 2.7
General trades 28.78 4.5
Mail and message distribution, other transport equipment operators and related maintenance workers 27.73 1.1
Helpers and labourers and other transport drivers, operators and labourers 24.35 1.2
Natural resources, agriculture and related production occupations except management 26.97 1.0
Supervisors and occupations in natural resources, agriculture and related production 37.74 0.8
Workers and labourers in natural resources, agriculture and related production 22.36 -3.0
Occupations in manufacturing and utilities except management 28.42 4.4
Supervisors, central control and process operators in processing, manufacturing and utilities and aircraft assemblers and inspectors 40.22 2.4
Machine operators, assemblers and inspectors in processing, manufacturing and printing 26.01 5.9
Labourers in processing, manufacturing and utilities 22.24 5.4
Total employees, all occupations 36.44 5.2

Footnotes

[1] As the economy recovered from the COVID-19 pandemic shutdowns, employment in Ontario increased by 361,400 (5.1 per cent) in 2021 and 359,300 (4.9 per cent) in 2022, the fastest two-year job gain on record back to 1976.

[2] Defined as the percentage of the working-age population (15 years and older) who are participating in the labour market whether employed or unemployed and looking for work.

[3] The increase in Ontario’s working-age population in 2024 was the largest on record in the Labour Force Survey back to 1976.

[4] Job losses include layoffs and dismissals as well as voluntary exits such as returning to school and retiring.

[5] Defined as the percentage of the working-age population who are employed.

[6] Statistics Canada: Labour Force Survey: Table 14-10-0023-01.

[7] Of the 528,200 male youth who were employed in 2024, 131,000 worked in wholesale and retail trade, 78,900 worked in accommodation and food services, and 59,400 worked in construction, for a total of 269,300, representing 51.0 per cent of employed male youths. These industries employed 22.9 per cent of all non-youth workers in 2024.

[8] Other services include industries related to repair and maintenance of motor vehicles, machinery and equipment and other products; personal care services, funeral services, laundry services, and other services to individuals; religious, grant-making, civic, and professional and similar organizations; as well as private households engaged in employing workers, such as cooks, maids, gardeners or caretakers, and babysitting. For details, see North American Industry Classification System (NAICS) Canada 2022 Version 1.0.

[9] Defined as the number of job vacancies expressed as a percentage of labour demand, that is, all occupied and vacant jobs.

[10] The ratio can be interpreted as the number of unemployed people per job vacancy.

[11] The CMA Belleville – Quinte West was excluded due to high volatility in its labour market data.

[12] Statistics Canada: Labour Force Survey: Table 14-10-0468-01.