Overview of Employment Trends
In March 2025, Ontario’s labour market faced a notable setback, with total employment falling by 27,500 jobs (-0.3%). This was driven primarily by a loss of full-time jobs (-31,700 or -0.5%), while part-time jobs saw a modest increase of +4,200 jobs (+0.3%). The overall unemployment rate rose to 7.5%, marking a 0.2 percentage point increase from February.
Employment declined in both key economic segments:
- Goods-producing sector: Down by 1,400 jobs (-0.1%)
- Services-producing sector: Down by 26,000 jobs (-0.4%)
The working population now stands at 8,229,800, reflecting a 0.3% decline since February.
Industry Insights
1. Construction Sector
- Employment Change: -1.2% (-7,200 jobs)
- Total Jobs: February – 585,500 | March – 578,300
Ontario’s construction industry saw its first decline after three months of growth. This contraction aligns with a sharp drop in the value of building permits issued in January 2025, which fell by $771.1 million, affecting both residential and non-residential sectors.
Despite the employment drop, large-scale non-residential projects continue in the province, including:
- Distribution and logistics facilities
- Retail and commercial developments
- Waste management infrastructure
2. Manufacturing Sector
- Employment Change: +0.3% (+2,800 jobs)
- Total Jobs: February – 839,600 | March – 842,400
Manufacturing saw a slight recovery for the third straight month, although sectoral stability remains fragile:
- S&P Global Manufacturing PMI dropped to 46.3, the lowest since May 2020.
- Sharp decline in new orders amid U.S.-led steel and aluminum tariffs.
Notable layoffs:
- Canada Metal Processing Group and Algoma Steel Inc. cut jobs in response to trade restrictions.
- Additional closures at Central Welding & Iron Works (North Bay) and Bull Moose Tube (Burlington).
3. Information, Culture, and Recreation Sector
- Employment Change: -6.2% (-22,500 jobs)
- Total Jobs: February – 363,600 | March – 341,100
This sector posted the largest job loss across all industries in March:
- Maple Leaf Sports and Entertainment laid off 80 employees during restructuring.
- Bell Media cut nearly 100 positions at the end of February.
Regional Employment and Unemployment Rates
By Region (Unemployment Rate):
- Northwest: 4.6% (lowest)
- Northeast: 5.2%
- London: 5.4%
- Stratford–Bruce Peninsula: 5.4%
- Ottawa: 5.5%
- Kingston–Pembroke: 5.9%
- Kitchener–Waterloo–Barrie: 7.1%
- Hamilton–Niagara Peninsula: 7.4%
- Toronto: 8.7%
- Muskoka–Kawarthas: 8.2%
- Windsor–Sarnia: 9.2% (highest)
These figures reflect a broad divergence in labour outcomes across the province, from strong performance in the north to higher unemployment in urban manufacturing zones.
Focus on Key Regions
Toronto Region
- Employment: 3,888,400 (+2.9% YoY)
- Unemployment Rate: 8.7% (+1.4 points YoY)
Toronto saw strong annual job growth, supported by:
- New energy infrastructure projects
- Expanding restaurant and retail sectors
Despite the gains, rising unemployment points to a mismatch between job creation and available workforce skills.
Windsor–Sarnia Region
- Employment: 349,600 (+1.1% YoY)
- Unemployment Rate: 9.2% (+2.1 points YoY)
The highest unemployment rate in Ontario was recorded in this region. However, major federal investments may boost employment soon:
- $37M for Lakeshore infrastructure
- $12M for Sarnia municipal wastewater upgrades
Kingston–Pembroke Region
- Employment: 234,300 (+4.0% YoY)
- Unemployment Rate: 5.9%
This region saw the largest proportional job growth, supported by:
- Expanding participation rate (up 1.5 percentage points)
- Upcoming openings in manufacturing and waste management
Ontario’s March 2025 labour market reveals signs of sector-specific and regional imbalances. While manufacturing continues to recover modestly, other industries like construction and recreation show significant slowdowns.
Urban areas such as Toronto are growing but also experiencing elevated unemployment, while rural areas like Kingston–Pembroke demonstrate strong gains. With ongoing investments in infrastructure and industry, Ontario’s job market may stabilize in the coming months—but structural challenges remain, especially in aligning labour supply with evolving economic needs.
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