Ontario records steepest drop in labour force since 1976, excluding pandemic

Ontario’s financial watchdog says the province’s labour force declined in the first quarter of this year at the sharpest rate since records began, excluding the pandemic lockdowns.

A new report from the Financial Accountability Office of Ontario said the number of people in work dropped by 71,300 between January and March, a decline of 0.8 per cent.

That decline is the steepest drop — barring COVID-19 —since the figure was first tracked in 1976.

The labour force estimates people who have done any work, whereas unemployment refers to people actively looking for work who haven’t found.

“Doug Ford is a jobs disaster,” said Ontario NDP MPP Jessica Bell. “With jobs numbers this bad, it’s no wonder the premier closed the Ontario legislature early and gave himself a five-month summer vacation.

The survey found Ontario had lost 52,900 jobs in the first quarter of 2026 — after adding 58,900 at the end of 2025.

The unemployment rate dropped marginally for people aged 25 to 54 and 55 years and older, but it increased again for young people. The rate of unemployment for people aged 15 to 24 rose to 15.9 per cent.

A spokesperson for the Ministry of Finance pointed to the economic effects of tariffs from the United States.

“As President Trump’s tariffs and tariff threats continue to disrupt supply chains and pose unprecedented challenges for workers and businesses on both sides of the border, our government is taking action to build a more resilient and self-reliant economy that protects workers, businesses, and families,” they wrote in a statement.

The FAO reflects a moment in time and does not accurately account for our government’s investments in protecting Ontario’s economy.”

Ontario Liberal MPP Stephanie Bowman said the government had mispent money on commercial campaigns instead of boosting the economy.

“Under this self-interested Doug Ford Conservative government, which is spending millions on self-promoting, delusional ads, Ontario’s economy continues to underperform the rest of Canada,” she wrote in a statement.

“After eight years in office, the Premier still has no plan to help young people find their first job or make groceries and the cost of housing more affordable.”

The FAO said major job losses occurred in manufacturing, science, retail and the accommodation and food services sector.

The government also pointed to affordability measures, like removing the cost of replacing licence plate stickers, in its statement.