January to March, 2026

Introduction

About the Ontario Employment Report

The Ontario Employment Report is released four times a year and provides an assessment of the current trends and developments in the Ontario labour market. The Ontario Employment Report is a companion report to the Ontario Economic Accounts, which provides an overall assessment of the current state of the Ontario economy.

Overview

Ontario’s labour market overview

Employment:

• -37,200 net jobs in Q1 2026, year-over-year
• +25,600 net full-time jobs in Q1 2026, year-over-year
• -5,800 net jobs in March 2026
• +12,400 net full-time jobs in March 2026

Unemployment rate:

• 7.5% in Q1 2026
• 7.6% in March 2026

Year-over-year, Ontario’s employment declined by 0.5% (-37,200) in the first quarter of 2026, marking the first year-over-year quarterly employment decline since the pandemic. At the same time, the labour force contracted (‑0.6%) and population growth, as measured by the Labour Force Survey, slowed to 0.8%, one of the lowest rates on record. This compares to a modest national employment increase of 0.3% (+57,800) over the same period. Between the first quarters of 2025 and 2026, Ontario’s unemployment rate edged down by 0.1 percentage point to 7.5%, while the national rate remained unchanged at 6.9%.

In March 2026, compared to the previous month, Ontario’s employment edged down by 5,800 (-0.1%), driven by a decrease in part-time positions (-18,200, -1.3%). However, this was partially offset by an increase in full-time employment (+12,400, +0.2%). Nationally, Canada saw modest employment growth in March (+14,100, +0.1%), primarily due to gains in part-time employment.

Compared to the previous month, Ontario’s unemployment rate remained unchanged at 7.6%, while Canada’s rate also held steady at 6.7% in March 2026.

Ontario’s labour market, January 2015 – March 2026 (seasonally adjusted)

Year-over-year overview

Between the first quarters of 2025 and 2026 in Ontario:

• The decline in employment was driven by a reduction in part‑time employment (-4.1%).
• Employment increased marginally in the private sector (+0.1%) but declined in the public sector (-1.3%) and among the self‑employed (-1.9%).
• Employment rose slightly in services‑producing industries (+0.1%), while declining in goods‑producing industries (-2.8%).
• Employment declined in Eastern (-3.2%) and Southwestern Ontario (-1.2%), while Northern Ontario posted the largest gain (+1.3%), followed by the Greater Toronto Area (+0.1%); employment in Central Ontario was essentially unchanged (+0.0%).
• Employment decreased among youth (-3.8%), declined modestly for core‑aged workers (-0.2%), and increased for older workers (+0.6%).
• Hourly wage growth (+4.1%) exceeded inflation (+1.7%).

Type of Work

Employment change by work status, Ontario, Q1 2026 over Q1 2025

In the first quarter of 2026, full-time employment increased by 0.4% year-over-year, while part-time employment declined by 4.1%.

Employment change by employment sector, Ontario, Q1 2026 over Q1 2025

Year-over-year, employment posted a marginal increase of 0.1% in the private sector, while it declined by 1.3% in the public sector^{footnote 1[1]} and by 1.9% among the self-employed.

Industry and occupation

Employment change by industry, goods-producing industries, Ontario, Q1 2026 over Q1 2025

Employment in goods-producing industries decreased (-2.8%) in the first quarter of 2026, compared to the same period in 2025. Employment declines in manufacturing (-4.8%), construction (-1.9%), and agriculture (-2.5%) were partially offset by increases in forestry, fishing, mining, quarrying, oil and gas (+5.7%), and utilities (+9.0%).

Employment change by industry, services-producing industries, Ontario, Q1 2026 over Q1 2025

In the first quarter of 2026, employment in the services-producing industries increased slightly (+0.1%) compared to the same period in 2025. Five of eleven services-producing industries experienced employment growth. Transportation and warehousing (+9.4%) experienced the largest employment gain, followed by information, culture and recreation (+5.0%). Educational services (-5.8%) experienced the largest employment decline compared to the same period in 2025.

Employment change by occupational group, Ontario, Q1 2026 over Q1 2025^{footnote 2[2]}

Year-over-year, six of ten occupational groups experienced a decline in employment, led by management occupations (-5.1%). Four occupational groups, led by natural and applied sciences and related occupations (+5.5%), recorded employment gains.

Geographic region

Employment change by Ontario region, Q1 2026 over Q1 2025^{footnote 3[3]}

Year-over-year, employment declined in two out of the five Ontario regions in the first quarter of 2026. Employment declines were concentrated in Eastern Ontario (-33,800, -3.2%) and Southwestern Ontario (-11,600, -1.2%). In contrast, Northern Ontario experienced the largest employment gain (+4,900, +1.3%), followed by the Greater Toronto Area (+2,700, +0.1%), while employment in Central Ontario remained essentially unchanged (+600, +0.0%).

Unemployment rates by Ontario region, Q1 2026^{footnote 4[4]}

In the first quarter of 2026, the unemployment rate edged down by 0.1 percentage point compared to the same quarter last year. Increases to the unemployment rate in Southwestern Ontario (+1.0 percentage point), Northern Ontario (+1.8 percentage points), and Eastern Ontario (+0.7 percentage point) were offset by declines in the GTA (-0.8 percentage point) and Central Ontario (-0.1 percentage point). The GTA had the highest unemployment rate (7.9%), followed by Southwestern Ontario (7.8%), Central Ontario (7.3%), Northern Ontario (6.7%), and Eastern Ontario (6.2%).

Age and gender

Employment change by age group and gender, Ontario, Q1 2026 over Q1 2025

In the first quarter of 2026, compared to the same quarter last year, employment declined for youth (-3.8%), and core-aged workers aged 25 to 54 years (-0.2%), but increased among older workers aged 55 years and over (+0.6%).

Year-over-year, employment decreased for men (-0.9%) and remained essentially unchanged for women (+0.0%).^{footnote 5[5]}

Unemployment rates by age group and gender, Ontario, Q1 2026

Youth in Ontario experienced the highest unemployment rate (15.7%) in the first quarter of 2026, followed by core-aged individuals (6.7%) and older individuals (4.8%). Compared to the same period last year, the unemployment rate increased for core-aged workers (+0.1 percentage point) but declined among youth and older workers (-0.3 and -0.4 percentage points respectively). 

In the first quarter of 2026, the unemployment rate for men (8.0%) was higher than that for women (6.9%). Compared to the same period last year, the unemployment rate was unchanged for women and declined 0.2 percentage point for men.

Education level and immigrant status

Employment rates by education level and immigrant status (core-aged population), Ontario, Q1 2026^{footnote 6[6]}

In the first quarter of 2026, core-aged individuals with a university degree continued to record the highest employment rate (87.2%), followed by those with a postsecondary certificate or diploma (83.9%), those with high school education (68.0%) and those with less than high school education (57.7%). Year-over-year, the employment rate for core-aged people increased across most education levels, except for those with high school education.

Those born in Canada had the highest employment rate (83.0%), followed by recent immigrants (81.1%), established immigrants (80.4%) and very recent immigrants (73.5%).   

Year-over-year, the employment rate decreased for most groups by immigration status, except for recent immigrants. 

Unemployment rates by education level and immigrant status (core-aged population), Ontario, Q1 2026^{footnote 7[7]}

In the first quarter of 2026, the core-aged population with a university degree had the lowest unemployment rate (4.9%) followed by those with a postsecondary certificate/diploma (6.2%). Those with a high school diploma (11.8%) and those with less than high school education (12.6%)^{footnote 8[8]} had higher unemployment rates. Year-over-year, the unemployment rate of core-aged people increased across all education levels, except for those with university education.

The core-aged population born in Canada had the lowest unemployment rate (5.8%) in the first quarter, while very recent immigrants had the highest unemployment rate (10.5%). Year-over-year, the unemployment rate increased for most groups by immigration status, except for recent immigrants.

Wages

Average hourly wage growth by type of work, Ontario, Q1 2026 over Q1 2025^{footnote 9[9]}

In the first quarter of 2026, the average hourly wage of Ontario employees was $38.85, an increase of 4.1% from the first quarter of 2025.^{footnote 10[10]} Nominal wage growth exceeded Consumer Price Index (CPI) inflation (1.7%) for the twelfth consecutive quarter as CPI has gradually declined from the post pandemic peak of 7.5% in Q2 2022.

Full-time employees (+4.1%), part-time employees (+1.1%), permanent employees (+4.3%), temporary employees (+2.1%), employees with union coverage (+2.4%) and those without union coverage (+4.7%) all experienced increases in average hourly wages. However, only part‑time employees experienced a nominal wage increase that was below inflation.

Methodological note

In the current issue, year-over-year change represents change between the averages in the first quarter of 2025 and the first quarter of 2026. Note that the Ontario Economic Accounts report primarily shows changes between two consecutive quarters.

This report uses seasonally adjusted data in charts displaying data with a monthly frequency in the Overview section.

Unadjusted data are used in charts and tables showing the changes for the current quarter compared with the same quarter for the previous year. Unadjusted data are also used to calculate annual averages, year-to-date averages and 2026 first quarter averages.^{footnote 11[11]}

All estimates in this report are based on Statistics Canada’s Labour Force Survey (LFS), which measures the current state of the national, provincial, and territorial labour market. The LFS is based on a household survey carried out monthly by Statistics Canada in reference weeks of each month. The reference periods for the three months of the first quarter of 2026 are January 11 to January 17, February 15 to February 21, and March 15 to March 21.

Appendix I

Overview of quarterly employment year-over-year, Ontario

Employment by Region (000)

Unemployment Rate by Region (%)

Total Employment by CMA (000)

Greater Toronto Area

Central Ontario

Eastern Ontario

Southwestern Ontario

Northern Ontario

Overview of monthly* labour force characteristics, Ontario

* Seasonally adjusted.