The unemployment rate in Ontario was 7.0% in September 2026, edging up 0.1 percentage points from the previous month. This rate is a critical monthly indicator of economic health, reflecting the share of the labour force actively seeking but unable to find work. For Canadian workers and policymakers, changes in this rate signal shifts in job market conditions across the province. Understanding the factors behind these monthly movements helps contextualize broader economic trends in Canada's largest provincial economy.
Current Ontario Unemployment Rate and Monthly Changes
The most recent data for Ontario shows an unemployment rate of 7.0% for September 2026. This represents a slight increase of 0.1 percentage points from the rate of 6.9% recorded in August 2026. This monthly change is a common feature of labour market data, reflecting the dynamic nature of hiring and job separation. During the same month, employment in Ontario decreased by 20,000 positions, a decline of 0.2%. This drop was split between full-time work, which fell by 9,800 jobs, and part-time work, which decreased by 10,200 positions. These concurrent movements in employment and unemployment are analyzed each month to gauge the strength of the provincial economy.
For context, the national unemployment rate in Canada for September 2026 was 6.5%, having inched up from 6.4% the previous month. Ontario's rate has historically been higher than the national average, with its long-term average standing at 7.37%. The provincial rate has seen significant fluctuation, having fallen to a near-record low of 5.0% in April 2023 before climbing in subsequent years. In September 2025, the Ontario unemployment rate was measured at 7.9%, indicating a degree of volatility in the labour market over a one-year period. Tracking these rates over time provides insight into economic cycles and recovery periods.
Sectoral Employment Trends in Ontario
The labour market performance varies significantly across different industries. In September 2026, the goods-producing sector saw employment increase by 0.5%, adding 7,700 jobs. This growth was led by a notable 5.5% increase in the agriculture sector, which added 3,200 positions, and a 1.5% rise in manufacturing, which added 11,800 jobs. These gains were partially offset by a 1.3% decline in construction employment, which lost 7,300 jobs. The expansion in agriculture coincided with investments in greenhouse technology and initiatives supporting growth across Canada's agri-food sector.
Conversely, the services-producing sector experienced a decline of 0.4% in September 2026, shedding 27,700 jobs. The accommodation and food services sector was particularly hard hit, falling by 1.9% or 8,500 jobs, marking its second consecutive monthly decline. The wholesale and retail trade sector, which is Ontario's largest employer, also declined by 1.1%, losing 12,500 positions. However, not all service sectors contracted. Educational services employment rebounded with a 1.7% increase, adding 9,800 jobs, following the return of staff and students after the summer break and provincial investments in postsecondary capacity.
Unemployment and Employment by Demographic Group
Labour market outcomes differ markedly across age groups and genders. Data from September 2025 shows the unemployment rate for youth aged 15 to 24 was 17.8%, a sharp increase from 16.5% the previous month. For the core working age group of 25 to 54, the unemployment rate was lower at 6.5%. Employment for this group increased by 34,100 jobs in September 2025, reaching a total of 5,453,600. For individuals aged 55 and older, employment decreased by 13,000 jobs in that same month.
Gender disparities are also evident in the labour market. In September 2025, the unemployment rate for women increased to 7.6%, while the rate for men remained unchanged at a higher level of 8.2%. Employment for men increased by 11,700 in September 2025, while employment for women decreased by 2,900. Over the first nine months of 2025, sales and service occupations led job gains with an increase of 52,900 positions, which represents a 3.1% growth. Health occupations also saw significant growth of 7.9%, adding 46,500 jobs.
Regional Variations Within Ontario
Unemployment is not evenly distributed across Ontario, with significant differences between economic regions and census metropolitan areas. The unemployment rate for the Economic Region of Toronto was 6.9%, which is used to calculate Employment Insurance requirements. Within this region, an insured worker needs 665 hours of work to qualify for regular benefits, with a minimum of 15 weeks payable. The Toronto Census Metropolitan Area, a broader geographical measure, saw its unemployment rate ease to 7.9% in late 2025 after climbing as high as 8.9% earlier that year. Other regions show varied performance, with the unemployment rate reportedly lowest in Northwest Ontario and highest in London.
In September 2025, employment in eleven of Ontario's sixteen Census Metropolitan Areas was above their September 2024 levels. The city of Toronto led these job gains with an increase of 29,100 positions. This represented a 0.8 percent growth over the previous year. Hamilton followed with a gain of 16,600 jobs, which was a 3.8 percent increase. Oshawa recorded an increase of 13,000 jobs, representing a 5.4 percent gain. London also saw significant growth with an addition of 12,100 jobs, a 3.8 percent increase.
- Toronto gained 29,100 jobs, an increase of 0.8%.
- Hamilton gained 16,600 jobs, an increase of 3.8%.
- Oshawa gained 13,000 jobs, an increase of 5.4%.
- London gained 12,100 jobs, an increase of 3.8%.
Conversely, notable employment losses were recorded in other major centres. Ottawa lost 19,200 jobs, a decline of 2.2%. Windsor lost 9,300 jobs, a decline of 3.8%. Barrie lost 4,900 jobs, a decline of 3.7%. These figures highlight the uneven economic recovery and job growth across different parts of the province.
Key Occupational Employment Trends
Employment changes in Ontario are analyzed by occupational groups, which cut across different industries. In September 2025, the largest occupational group by employment was sales and service, accounting for 20.7 percent of total employment. Business, finance and administration occupations were the second largest group at 16.8 percent. Trades, transport and equipment operators constituted 13.8 percent of employment. Over the first nine months of 2025, five of the ten major occupational groups had net employment gains compared to the same period in 2024.
- Sales and service occupations gained 52,900 jobs, a 3.1% increase.
- Health occupations gained 46,500 jobs, a 7.9% increase.
- Natural and applied sciences and related occupations gained 37,900 jobs, a 4.7% increase.
- Occupations in education, law and social, community and government services gained 12,500 jobs.
Notable employment losses were recorded in other sectors. Trades, transport and equipment operators and related occupations lost 33,500 jobs, a decline of 2.9%. Management occupations lost 29,800 jobs, a decline of 3.3%. Occupations in manufacturing and utilities lost 27,800 jobs, representing a significant 7.0% decrease. These shifts highlight the changing demand for skills within the provincial economy.
Historical Context and Economic Significance
The unemployment rate is a lagging economic indicator, meaning it often changes after the economy has already begun to shift. Ontario's rate reached a near-record low of 5.0% in April 2023 before beginning a sustained increase. By September 2025, the rate had risen to 7.9%. This upward trend mirrored the national unemployment rate, which also increased significantly from a low of 5.0% in March 2023 to 7.1% by September 2025. Ontario's economy accounts for approximately 40% of Canada's total economic output, making its labour market conditions particularly influential on the national picture. Job creation in Ontario slowed in 2025, with 80,900 jobs created for the entire year. This slowdown contributed to the rising unemployment rate, which increased to 6.5% at one point during that year.
The Labour Force Survey data is the source for these labour market statistics. This household survey reflects prevailing economic conditions, including the impact of international trade developments. The data for August 2025 covered labour market conditions during the week of September 14 to 20. It reflected initial tariffs on exports to the United States implemented throughout that year. These tariffs affected goods not compliant with the Canada United States Mexico agreement. They also affected steel, aluminum, automobiles, auto parts, and copper.
Monthly Labour Market Snapshot Components
A complete understanding of the unemployment rate requires looking at several interconnected labour force metrics. The rate itself is calculated as the number of unemployed people actively seeking work divided by the total labour force, which includes both employed and unemployed individuals. In September 2025, there were 705,900 people unemployed in Ontario, an increase of 20,500 from the previous month. The labour force participation rate, which measures the proportion of the working-age population that is either employed or actively looking for work, also influences the unemployment rate. Other components of the monthly snapshot include employment type and industry breakdowns.
In September 2025, full time employment in Ontario increased by 44,700 positions. Part time employment decreased by 36,100 jobs in the same month. The largest industry group by employment was wholesale and retail trade with 1,153,600 jobs. Health care and social assistance was the second largest industry with 1,020,800 jobs. Professional, scientific and technical services employed 910,400 people. Manufacturing employed 825,100 people. Public administration employment declined by 7,100 jobs, a decrease of 1.5 percent. Business building and other support services saw a gain of 9,800 jobs, an increase of 3.7 percent.
Frequently asked questions
What is the current unemployment rate in Ontario?
The most recent data shows Ontario's unemployment rate was 7.0% in September 2026. This marked a slight increase of 0.1 percentage points from the previous month's rate of 6.9%. The rate is subject to monthly revision as new labour force survey data is released by Statistics Canada. It remains a key indicator of economic health in the province.
How many people are employed in Ontario?
In September 2025, there were 8,199,800 people employed in Ontario. This figure fluctuates monthly with economic conditions. Employment decreased by 20,000 in September 2026, with losses in both full-time and part-time work. The largest employing industries are wholesale and retail trade, health care and social assistance, and professional services.
How does Ontario's unemployment rate compare to Canada's?
In September 2026, Ontario's unemployment rate of 7.0 percent was higher than the Canadian national rate of 6.5 percent. The national rate had inched up from 6.4 percent the previous month. Ontario's rate has historically been above the national average, with a long term average of 7.37 percent. The provincial rate has increased significantly since reaching a near record low of 5.0 percent in April 2023. This trend reflects broader labour market changes in the province.
Which industries are gaining and losing jobs in Ontario?
In September 2026, employment increased in the goods producing sector by 0.5 percent. Notable gains were seen in agriculture, which rose 5.5 percent, and manufacturing, which added 11,800 jobs. Conversely, the services producing sector declined by 0.4 percent. Specific losses occurred in accommodation and food services, which fell 1.9 percent, and wholesale and retail trade, which declined by 12,500 positions. However, educational services within the service sector rebounded with a gain of 9,800 jobs.
What is the unemployment rate in Toronto?
The unemployment rate for the Employment Insurance Economic Region of Toronto was 6.9 percent. For the broader Toronto Census Metropolitan Area, the rate had eased to 7.9 percent by late 2025 after climbing as high as 8.9 percent earlier that year. This metropolitan rate is typically higher than the overall provincial average. The data indicates a concentration of job seekers and specific labour market conditions within the Toronto area.
Which group has the highest unemployment rate in Ontario?
Youth aged 15 to 24 consistently have the highest unemployment rate in Ontario. In September 2025, their unemployment rate was 17.8 percent. This is significantly higher than the rate for individuals aged 25 to 54, which was 6.5 percent. It is also much higher than the overall provincial unemployment rate of 7.9 percent for that same month. This demographic often faces distinct challenges when entering the labour market.
Sources and further reading
- Ontario, September 2026 - Job market snapshot jobbank.gc.ca
- Labour market report, September 2025 ontario.ca
- Canadian Employment (September 2026) - TD Economics economics.td.com
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