Ontario’s financial watchdog says the province’s labor force fell in the first quarter of this year at the sharpest pace since records began, excluding pandemic shutdowns.
A new report from Ontario’s Financial Accountability Office said the number of people in work fell by 71,300 between January and March, a drop of 0.8 per cent.
This drop is the biggest drop – excluding COVID-19 – since the figure was first tracked in 1976.
The labor force measures people who have done any work, while unemployment refers to people who are actively looking for work that they have not found.
“Doug Ford is a jobs disaster,” said Ontario NDP MP 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 break.
The survey found Ontario lost 52,900 jobs in the first quarter of 2026 — after adding 58,900 at the end of 2025.
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The unemployment rate fell slightly for those aged 25 to 54 and 55 and over, but rose again for young people. The unemployment rate for people aged 15 to 24 rose to 15.9 percent.
A spokesman for the Ministry of Finance noted the economic effects of the tariffs from the United States.
“As President Trump’s tariffs and tariff threats continue to disrupt supply chains and present unprecedented challenges to workers and businesses on both sides of the border, our government is taking action to build a more resilient and independent 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 investment in protecting Ontario’s economy.”
Ontario Liberal MPP Stephanie Bowman said the government was spending money badly on commercial campaigns instead of boosting the economy.
“Under this self-interested Conservative government of Doug Ford, which is spending millions on self-promoting, delusional advertising, Ontario’s economy continues to underperform the rest of Canada,” she wrote in a statement.
“After eight years in office, the Prime Minister still has no plan to help young people find their first job or make groceries and housing more affordable.
The FAO said major job losses occurred in the manufacturing, science, retail and accommodation and food service sectors.
The government also pointed to affordability measures, such as removing the cost of replacing license plate stickers, in its statement.
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