Ontario’s unemployment rate rose more than any other province for the second year in a row, according to a new report from the Financial Accountability Office of Ontario.
The report says job growth slowed in 2025, with about 80,900 new jobs added — fewer than the year before and the slowest pace since 2015, not counting the COVID-19 pandemic. Because more people were looking for work than there were jobs available, the unemployment rate climbed to 7.7 per cent, up from 7.0 per cent in 2024.
Unemployment increased across most of the province, except in St. Catharines-Niagara. Guelph had the biggest drop in jobs.
While some industries added jobs, many of them were lower-paying. Job losses were highest in areas affected by tariffs, such as manufacturing, agriculture and warehousing.
Ontario Liberal MPP Stephanie Bowman criticized the provincial government, saying rising unemployment shows its plans are not working. Meanwhile, a government spokesperson said U.S. tariffs and trade tensions are hurting businesses and workers, and the province is offering support while trying to attract new investment.
