Ontario’s labour market showed signs of cooling in August 2025, according to the latest Labour Force Survey from StatsCan. The unemployment rate rose to 7.7%, up from 7.9% in July, even as the total number of job seekers declined slightly. Employment fell by 26,000 positions, marking a second consecutive monthly decline and lowering the employment-to-population ratio to 60.5%-a level not seen since early 2024.
Self-employment dropped dramatically by 43,000, offsetting gains seen earlier in the year. The employment rate for core-aged men (85.8%) and women (79.5%) reached multi-year lows, indicating a broader slowdown across prime working demographics. Youth unemployment remained elevated at 14.5%, among the highest levels in over a decade. Returning students, preparing for the academic year, saw an even more concerning unemployment rate of 17.9%-a historic summer peak outside pandemic years.
At the sector level, construction showed resilience with job gains, but other industries-such as professional services, transportation, and manufacturing-experienced losses. While provincial data doesn’t provide a local breakdown, Central Ontario communities, including Northumberland County, are likely feeling the impacts, especially in sectors tied to goods movement and technical services.
The report underscores that Ontario’s labour market momentum is fading, and policymakers may need targeted strategies to support youth, rebuild self-employment levels, and bolster sectors with weakening job numbers as the province adjusts to shifting economic conditions.
(Written by: Joseph Goden)
