Ontario sees sharpest labour force decline since 1976, excluding pandemic

Ontario’s financial watchdog says the province’s labour force fell sharply in the first quarter of 2026, marking the steepest quarterly decline since tracking began in 1976 outside of the pandemic period. The Financial Accountability Office of Ontario reported that employment dropped by 71,300 people between January and March, a decrease of 0.8 per cent. The report also said Ontario lost 52,900 jobs in the quarter after gaining 58,900 late in 2025. The data showed mixed labour market trends by age group, with unemployment easing slightly for people aged 25 to 54 and those 55 and older, while the rate for workers aged 15 to 24 rose to 15.9 per cent. The FAO said the largest job losses were in manufacturing, science, retail, and accommodation and food services. Provincial officials pointed to the impact of U.S. tariffs and trade uncertainty, while opposition MPPs blamed the government’s economic management and spending priorities.