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- calendar_today November 2, 2026
Ontario's labour market has recently experienced significant changes, with new data highlighting both employment growth and moderate wage increases. The latest official numbers provide a nuanced picture of current employment levels, wage trends, and shifts within industries and demographics.
According to Statistics Canada's Labour Force Survey for May 2026, Ontario saw an employment gain of 42,000 jobs (+0.5%), following a similar increase the previous month. These two consecutive months accounted for a cumulative employment growth of 84,000 (+1.0%). Simultaneously, Ontario’s unemployment rate dropped by 0.5 percentage points to 7.0%, marking its lowest level since September 2024. This improvement paralleled a broader national context of modest employment gains and a reduction in unemployment, with Canada’s unemployment rate falling to 6.6% in May 2026(Statistics Canada, Labour Force Survey, May 2026).
When looking at wage growth, Ontario's average weekly earnings reached $1,395.60—a 3.9% increase over the past 12 months. This rate of wage growth is slightly higher than the Canadian average of 3.7%. Notably, the average hourly wage across Canada in May 2026 was $37.24, up 3.0% year-over-year. These figures underscore ongoing upward pressure on wages, although wage growth has moderated compared to the previous month’s higher figures(Statistics Canada, Labour Statistics Overview).
Employment gains in Ontario were broad-based, with particular strength in construction, information, culture and recreation, and transportation and warehousing. In May, the construction industry posted one of the strongest monthly growth rates across Canada (+1.7%). The Toronto census metropolitan area also reflected these positive developments, as its unemployment rate declined sharply by 1.1 percentage points to 6.8%, bringing it closer to the rates seen in other major cities(Statistics Canada, Labour Force Survey, May 2026).
Among different age groups, core-aged (25 to 54 years old) workers saw employment increases and lower unemployment rates. Both men and women in this group recorded unemployment rates comfortably below 6% in May. The youth (aged 15 to 24) unemployment rate, while still elevated at 13.4%, improved nearly a full percentage point month-over-month, but remained above pre-pandemic historical averages(Statistics Canada, Labour Force Survey, May 2026).
Industry-specific wage data show that in 2025, average hourly rates in Ontario's key sectors continued to rise, with sectors such as professional, scientific and technical services, and public administration reaching hourly averages above $45 and $46 respectively nationwide. Service sector jobs also saw wage increases, though at lower average levels in industries such as retail and accommodation and food services(Statistics Canada, Employee wages by industry, annual).
In summary, official Canadian and Ontario labour data for 2026 reveal an outlook marked by improving employment levels, a declining unemployment rate, and steady wage growth. Ontario's labour market currently demonstrates resurgent momentum, particularly in full-time employment and key growing industries.
