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:

  • +105,300 net jobs in Q3 2026, year-over-year
  • +85,000 net full-time jobs in Q3 2026, year-over-year
  • -20,000 net jobs in September 2026
  • -9,800 net full-time jobs in September 2026

Unemployment rate:

  • 7.3% in Q3 2026
  • 7.0% in September 2026

Year-over-year, Ontario’s employment increased by 1.3% (+105,300) in the third quarter of 2026, outpacing growth in both the labour force (+0.2%) and the total population aged 15 years and over (+0.5%) (as measured by the Labour Force Survey). Canada’s overall employment increase was 0.8% (+163,900) over the same period. Between the third quarters of 2025 and 2026, Ontario’s unemployment rate decreased by 1.0 percentage point to 7.3%, while the national unemployment rate declined by 0.6 percentage point to 6.7%.

Ontario’s labour market, January 2016 – September 2026 (seasonally adjusted)

Image
The combination line and area chart shows Ontario’s unemployment rate and employment from January 2016 to September 2026. Detailed description follows.

In September 2026, Ontario’s seasonally adjusted employment stood at 8,286,500, declining by 20,000 (-0.2%) from the previous month, reflecting decreases in both full-time (-0.1%) and part-time employment (-0.7%). This followed a monthly employment decline in August (-0.2%), partially offsetting an increase in July (+0.6%). National employment also decreased by 0.3% (-68,300) in September 2026.

In September 2026, Ontario's unemployment rate increased by 0.1 percentage point from the previous month to 7.0%. The national unemployment rate also increased by 0.1 percentage point, reaching 6.5%.

Year-over-year overview

Between the third quarters of 2025 and 2026 in Ontario:

  • Employment increased by 1.3%, driven by growth in both full‑time (+1.2%) and part-time employment (+1.5%).
  • Employment increased in the private sector (+2.1%) and among the self-employed (+4.0%), but declined in the public sector (-3.4%).
  • Employment increased in both services-producing (+1.5%) and goods-producing industries (+0.2%).
  • Employment growth was led by gains in the GTA (+1.8%) and Central Ontario (+2.3%).
  • Employment increased among core-aged workers (+2.0%) and older workers (+0.7%), but declined among youth (-1.1%).
  • The unemployment rate declined overall (-1.0 percentage point) and across most sociodemographic groups.
  • Hourly wages increased by 1.5%, below the inflation rate of 2.3%.

Type of Work

Employment change by work status, Ontario, Q3 2026 over Q3 2025

Image
The horizontal bar chart shows changes in Ontario’s employment by full- and part-time status between Q3 2025 and Q3 2026. Detailed description follows.

Year-over-year, employment in Ontario rose by 1.3% (+105,300) in the third quarter of 2026, driven by increases in both full-time employment (+85,000, +1.2%) and part-time employment (+20,200, +1.5%).

Employment change by employment sector, Ontario, Q3 2026 over Q3 2025

Image
The horizontal bar chart shows changes in Ontario’s employment by sector between Q3 2025 and Q3 2026. Detailed description follows.

Year-over-year, employment increased by 2.1% (+113,900) in the private sector and by 4.0% (+44,600) among the self-employed, while it declined by 3.4% (-53,300) in the public sector. footnote 1 This marked the fifth consecutive quarter in which public sector employment declined year-over-year, while private sector employment recorded year-over-year increases.

Industry and occupation

Employment change by industry, goods-producing industries, Ontario, Q3 2026 over Q3 2025

Image
The horizontal bar chart shows employment changes in Ontario’s goods-producing industries between Q3 2025 and Q3 2026. Detailed description follows.

Employment in goods-producing industries increased (+3,800, +0.2%) in the third quarter of 2026, compared to the same period in 2025. Gains in manufacturing (+6,100, +0.7%) and forestry, fishing, mining, quarrying, oil and gas (+5,600, +12.4%) offset declines in utilities (-3,800, -5.7%), agriculture (-2,900, -4.6%) and construction (-1,100, -0.2%).

Employment change by industry, services-producing industries, Ontario, Q3 2026 over Q3 2025

Image
The horizontal bar chart shows employment changes in Ontario’s services-producing industries between Q3 2025 and Q3 2026. Detailed description follows.

In the third quarter of 2026, overall employment growth was primarily driven by the services-producing industries, with employment increasing by 101,400 (+1.5%) compared to the same period in 2025. Seven of eleven services-producing industries experienced employment growth. Health care and social assistance (+45,800, +4.5%) experienced the largest employment gain, followed by transportation and warehousing (+33,400, +8.0%). Educational services (-32,000, -6.0%) experienced the largest employment decline compared to the same period in 2025, followed by wholesale and retail trade (-23,600, -2.0%).

Employment change by occupational group, Ontario, Q3 2026 over Q3 2025footnote 2

Image
The horizontal bar chart shows changes in employment in Ontario by occupational group between Q3 2025 and Q3 2026. Detailed description follows.

Eight of ten occupational groups experienced employment growth in the third quarter of 2026 compared to the same quarter in 2025. Health occupations (+32,500, +5.3%) recorded the largest increase followed by trades, transport and equipment operators and related occupations (+22,100, +1.9%), and business, finance and administration occupations (+20,700, +1.5%). Two occupational groups recorded employment declines, led by sales and service occupations (-8,100, -0.5%).

Geographic region

Employment change by Ontario region, Q3 2026 over Q3 2025footnote 3

Image
The map shows changes in employment across Ontario’s five regions between Q3 2025 and Q3 2026. Detailed description follows.

Year-over-year, employment growth was concentrated in the Greater Toronto Area (+71,200, +1.8%) and Central Ontario (+44,700, +2.3%), with more modest gains in Eastern Ontario (+6,000, +0.6%). By contrast, employment declined in Southwestern Ontario (-16,200, -1.7%) and was little changed in Northern Ontario (-500, -0.1%).

Unemployment rates by Ontario region, Q3 2026footnote 4

Image
The horizontal bar chart shows unemployment rates across Ontario’s five regions in Q3 2026, with percentage point changes from Q3 2025 in brackets. Detailed description follows.

In the third quarter of 2026, the unemployment rate (7.3%) declined by 1.0 percentage point compared to the same quarter last year. Eastern Ontario and the GTA had the highest unemployment rates (both 7.7%), followed by Southwestern Ontario (7.4%), and Central Ontario (6.7%). Northern Ontario had the lowest unemployment rate (5.8%).

Year-over-year, the unemployment rate declined in most regions, led by the GTA (-1.9 percentage points), followed by Central Ontario (-0.6 percentage point), Southwestern Ontario (-0.2 percentage point) and Northern Ontario (-0.1 percentage point). Eastern Ontario (+0.6 percentage point) was the only region to record an increase in its unemployment rate.

Age and gender

Employment change by age group and gender, Ontario, Q3 2026 over Q3 2025

Image
The horizontal bar chart shows employment changes by age group and gender between Q3 2025 and Q3 2026. Detailed description follows.

In the third quarter of 2026, compared to the same quarter last year, employment increased among core-aged workers aged 25 to 54 years (+105,800, +2.0%) and older workers aged 55 years and over (+11,900, +0.7%), but declined for youth aged 15 to 24 years (-12,400, -1.1%).

Year-over-year, employment increased for both women (+55,100, +1.4%) and men (+50,100, +1.1%).footnote 5

Unemployment rates by age group and gender, Ontario, Q3 2026

Image
The horizontal bar chart shows unemployment rates by age group and gender in Q3 2026, with percentage point changes from Q3 2025 in brackets. Detailed description follows.

Youth in Ontario experienced the highest unemployment rate (15.4%) in the third quarter of 2026, followed by core-aged individuals (6.1%) and older individuals (5.5%). Compared to the same period last year, the unemployment rate decreased for youth (-1.7 percentage points), core-aged workers (-1.0 percentage point) and older workers (-0.2 percentage point). 

In the third quarter of 2026, the unemployment rate for women (7.6%) was higher than that for men (7.1%). Compared to the same period last year, the unemployment rate declined for both men and women (-1.1 and -0.8 percentage point, respectively).

Education level and immigrant status

Employment rates by education level and immigrant status (core-aged population), Ontario, Q3 2026footnote 6

Image
The horizontal bar chart shows employment rates by education level and immigrant status for core-aged individuals in Q3 2026, with percentage point changes from Q3 2025 in brackets. Detailed description follows.

In the third quarter of 2026, core-aged individuals with a university degree continued to record the highest employment rate (87.0%), followed by those with a postsecondary certificate or diploma (83.6%), those with high school education (74.8%) and those with less than high school education (56.8%). Year-over-year, the employment rate increased across all education levels.

Among core-aged individuals, those born in Canada had the highest employment rate (84.1%), followed by recent immigrants (82.6%), established immigrants (81.1%) and very recent immigrants (76.7%). Year-over-year, the employment rate increased for most groups by immigration status, except for very recent immigrants. 

Unemployment rates by education level and immigrant status (core-aged population), Ontario, Q3 2026footnote 7

Image
The horizontal bar chart shows unemployment rates by education level and immigrant status for core-aged individuals in Q3 2026, with percentage point changes from Q3 2025 in brackets. Detailed description follows.

In the third quarter of 2026, the core-aged population with a university degree had the lowest unemployment rate (5.2%), followed by those with a postsecondary certificate/diploma (5.7%). Individuals with a high school diploma (8.3%) and those with less than high school education (11.5%)footnote 8 had higher unemployment rates. Year-over-year, the unemployment rate decreased across all education levels.

The core-aged recent immigrants had the lowest unemployment rate (5.3%) in the third quarter of 2026, while very recent immigrants had the highest unemployment rate (7.9%). Year-over-year, the unemployment rate decreased for all groups by immigration status.

Wages

Average hourly wage growth by type of work, Ontario, Q3 2026 over Q3 2025footnote 9

Image
The vertical bar chart shows percentage change in Ontario’s nominal hourly wages by type of work between Q3 2025 and Q3 2026. The dotted line shows inflation change from Q3 2025 to Q3 2026. Detailed description follows.

In the third quarter of 2026, the average hourly wage of Ontario employees was $38.31, an increase of 1.5% from the third quarter of 2025.footnote 10 Consumer Price Index (CPI) inflation (2.3%) exceeded nominal wage growth for the first time after thirteen consecutive quarters in which wage growth outpaced inflation.

Full-time employees (+1.3%), part-time employees (+2.8%), permanent employees (+1.3%), temporary employees (+5.3%), employees with union coverage (+3.5%) and those without union coverage (+0.7%) all experienced increases in average hourly wages. However, nominal wage growth was below inflation for full-time employees, permanent employees and employees without union coverage.

Methodological note

In the current issue, year-over-year change represents change between the averages in the third quarter of 2025 and the third 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 third quarter averages.footnote 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 third quarter of 2026 are July 12 to July 18, August 9 to August 15 and September 13 to September 19.

Appendix I

Overview of quarterly employment year-over-year, Ontario

-2024Q42025Q42025Q12026Q12025Q22026Q22025Q32026Q3
Total Labour Force (000)8,777.98,869.38,825.78,773.88,968.58,975.48,980.68,999.2
Participation Rate (%)64.664.564.763.865.565.265.465.3
Men+ Participation Rate (%)69.268.869.167.870.169.470.169.7
Women+ Participation Rate (%)60.260.360.459.860.961.160.960.9
Total Employment (000)8,176.68,248.18,155.58,118.38,270.08,339.98,234.38,339.6
- Full-time (000)6,704.36,762.26,623.66,649.26,757.66,905.36,863.06,948.0
- Part-time (000)1,472.41,485.91,531.91,469.11,512.41,434.61,371.41,391.5
Employment-Population Ratio (%)60.260.059.859.060.460.660.060.5
Men+ Employment (000)4,322.34,355.84,290.94,252.14,374.84,387.94,373.94,424.0
Women+ Employment (000)3,854.33,892.23,864.63,866.23,895.23,952.13,860.43,915.5
Part Time (% of total)18.018.018.818.118.317.216.716.7
Goods-Producing Sector Employment (000)1,562.61,571.01,555.61,511.81,574.81,577.61,600.71,604.5
Services-Producing Sector Employment (000)6,614.06,677.06,599.96,606.46,695.26,762.36,633.66,735.1
Private Sector Employment (000)5,400.65,532.95,400.35,405.35,513.25,595.85,549.45,663.3
Public Sector Employment1,650.31,619.91,643.91,622.51,643.81,617.61,576.11,522.8
Self-Employment (% of total)13.813.313.613.413.513.513.513.8
Total Unemployment (000)601.3621.2670.1655.5698.5635.5746.2659.7
Unemployment Rate (%)6.97.07.67.57.87.18.37.3
Men+ Unemployment Rate (%)7.37.18.28.08.17.38.27.1
Women+ Unemployment Rate (%)6.46.96.96.97.46.88.47.6
Long-Term (27 wks+) (% of total)27.830.626.927.925.027.426.323.7
Average Unemployment in Weeks25.026.124.226.124.126.325.423.9
Youth Unemployment Rate (%)15.014.116.015.716.616.217.115.4
25-54 y.o Unemployment Rate (%)5.96.26.66.76.75.97.16.1
55+ y.o Unemployment Rate (%)4.54.95.14.85.24.55.75.5
Average Weekly Wage Rate ($)1,368.651,403.371,361.931,418.971,366.751,419.451,394.281,419.94
Average Hourly Wage Rate ($)37.4338.4937.3238.8537.3138.4837.7338.31

Employment by Region (000)

Region2024Q42025Q42025Q12026Q12025Q22026Q22025Q32026Q3
Central1,901.81,922.41,884.81,885.41,950.91,964.71,927.51,972.2
Southwestern945.8972.6931.3919.7927.9927.1947.6931.4
Eastern1,085.71,034.71,070.31,036.51,075.81,068.11,061.11,067.1
Northern379.3394.8380.8385.7391.5391.6402.6402.1
Greater Toronto Area (GTA)3,863.93,923.53,888.43,891.13,923.83,988.43,895.53,966.7

Unemployment Rate by Region (%)

Region2024Q42025Q42025Q12026Q12025Q22026Q22025Q32026Q3
Central6.36.77.37.36.76.87.36.7
Southwestern6.26.36.97.87.37.17.67.4
Eastern5.46.55.66.26.46.77.17.7
Northern5.46.25.06.75.46.35.95.8
Greater Toronto Area (GTA)7.87.68.77.997.49.57.7

Total Employment by CMA (000)

Greater Toronto Area

-2024Q42025Q42025Q12026Q12025Q22026Q22025Q32026Q3
Toronto3,682.03,743.73,720.63,709.93,766.53,801.63,715.83,794.2
Oshawa239.7258.2247.3253.7240.0261.2253.3256.4

Central Ontario

-2024Q42025Q42025Q12026Q12025Q22026Q22025Q32026Q3
Hamilton430.8444.0419.4432.2450.8457.6454.6447.9
Kitchener-Cambridge-Waterloo389.6387.8385.7382.0396.8388.2386.1388.6
St. Catharines-Niagara242.5237.8237.4233.4243.4243.6238.8243.0
Peterborough70.772.868.368.468.671.373.576.7
Brantford85.587.483.487.388.391.589.891.6
Guelph97.996.7100.1100.998.2105.694.9108.9
Barrie130.8129.6125.2126.5134.9132.1130.9137.0

Eastern Ontario

-2024Q42025Q42025Q12026Q12025Q22026Q22025Q32026Q3
Ottawa-Gatineau (Ontario part)702.3665.2705.5675.5699.7706.2682.4690.7
Kingston96.093.696.693.695.195.694.394.4
Belleville - Quinte West35.155.431.758.255.258.554.961.2

Southwestern Ontario

-2024Q42025Q42025Q12026Q12025Q22026Q22025Q32026Q3
London322.3328.6324.2313.5326.1317.6333.7312.9
Windsor237.8245.8241.4231.4234.1232.8231.1244.1

Northern Ontario

-2024Q42025Q42025Q12026Q12025Q22026Q22025Q32026Q3
Greater Sudbury91.997.092.698.796.7100.395.4101.5
Thunder Bay65.370.063.368.165.468.368.567.2

Overview of monthly* labour force characteristics, Ontario

-Jul-25Aug-25Sept-25Oct-25Nov-25Dec-25Jan-26Feb-26Mar-26Apr-26May-26Jun-26Jul-26Aug-26Sept-26
Employment8,216.38,190.38,200.28,252.58,256.48,274.58,208.08,211.38,205.58,247.98,289.78,273.08,324.68,306.58,286.5
Unemployment rate7.87.77.97.67.47.97.37.67.67.57.07.06.86.97.0
Participation rate65.064.764.865.064.865.464.464.664.664.864.764.664.864.764.6

Footnotes

  • footnote[1] Back to paragraph The public sector includes employees in federal, provincial, territorial, municipal and Aboriginal public administrations, as well as in Crown corporations, liquor control boards and other government institutions such as schools (including universities), hospitals and public libraries.
  • footnote[2] Back to paragraph Occupation estimates are based on the 2021 National Occupational Classification. Management occupations are classified under the management occupational category and the remaining categories exclude management occupations.
  • footnote[3] Back to paragraph The map shows five Ontario regions: Northern Ontario, Eastern Ontario, Southwestern Ontario, Central Ontario and the Greater Toronto Area (the GTA), which are based on Ministry of Finance’s groupings of Statistics Canada’s economic regions. Employment changes are based on three-month moving averages for September 2025 and September 2026, using unadjusted data.
  • footnote[4] Back to paragraph Based on a three-month moving average for September 2026, using unadjusted data. The seasonally adjusted estimate for Ontario in Q3 2026 is 6.9%.
  • footnote[5] Back to paragraph Changes have been introduced to the Labour Force Survey starting in January 2022 to use gender (men+, women+) instead of sex of person (male, female). The category “Men+” includes men and boys, as well as some non-binary persons, while the category “Women+” includes women and girls, as well as some non-binary persons. Given that the non-binary population is small, data aggregation to a two-category gender variable is necessary to protect the confidentiality of responses provided.
  • footnote[6] Back to paragraph Rate by immigrant status is based on a three-month moving average for September 2026. Education level refers to the highest level of schooling completed.
  • footnote[7] Back to paragraph Rate by immigrant status is based on a three-month moving average for September 2026. Education level refers to the highest level of schooling completed.
  • footnote[8] Back to paragraph The less than high school population includes those with 0 to 8 years of education and those with some high school education.
  • footnote[9] Back to paragraph Nominal wage growth, not adjusted for inflation. Self-employment is excluded. Inflation is measured as an increase in the all-items Consumer Price Index for Ontario between July and September 2025 and July and September 2026.
  • footnote[10] Back to paragraph Year-over-year comparison (between third quarters of 2025 and 2026) is in nominal dollars.
  • footnote[11] Back to paragraph Estimates of employment changes and rate calculations are based on unrounded quarterly estimates and may differ slightly from estimates based on published quarterly data due to rounding.