TORONTO, June 4, 2026 – The latest report from Ontario’s Financial Accountability Office shows that Ontario’s labour force fell by 71,300 people, or 0.8%, in the first quarter of 2026. Excluding the pandemic lockdown period, this was the largest quarterly decline on record since 1976. During the same period, employment in Ontario fell by 52,900, while the youth unemployment rate rose to 15.9%. For newcomers looking for their first job, international students, PGWP holders and young job seekers, the cooling labour market is turning from a macroeconomic data point into more immediate job-search pressure.
The Financial Accountability Office’s Ontario Economic Monitor said job losses in the first quarter were concentrated across several sectors. Manufacturing lost 31,100 jobs, professional, scientific and technical services lost 16,400 jobs, wholesale and retail trade lost 13,300 jobs, accommodation and food services lost 13,200 jobs, and educational services lost 7,400 jobs. Many of these industries are common entry points for newcomers, international students and young people trying to enter the local labour market.
The report also showed that Ontario’s unemployment rate edged down from 7.6% to 7.5% in the first quarter. However, this does not necessarily mean the job market improved. The Financial Accountability Office noted that the labour force declined by more than employment, suggesting that some people may have left the labour market and are no longer counted as actively looking for work. The share of long-term unemployed workers also rose from 27.8% in the previous quarter to 28.2%, the second-highest level since 1996, excluding the pandemic period.
For Chinese communities in the Greater Toronto Area, the impact of these figures is not only statistical. International students and recent PGWP holders need to find suitable work within a limited period to maintain income and future plans. Newcomer families often rely on a first local job to build credit history, pay rent and gain Canadian experience. If restaurants, retail, education support, office administration and entry-level technical roles shrink, those most likely to feel the pressure first are job seekers without strong local networks, language advantages or completed credential recognition.
Youth employment pressure is especially worth watching. The report showed that the unemployment rate for people aged 15 to 24 rose to 15.9% in the first quarter, compared with 6.6% for core-age workers. A higher youth unemployment rate means competition may intensify for summer jobs, internships, entry-level roles and first jobs after graduation. For international students still in school, work-hour limits, class schedules and immigration status may further narrow job options.
However, first-quarter data should still be interpreted carefully. A decline in the labour force can be caused by multiple factors, including people temporarily stopping their job search, leaving Ontario, returning to school, retiring, taking on caregiving responsibilities, or delaying job searches because of a weak labour market. Different cities, industries and age groups may also be affected differently, so the data should not be simplified as meaning all jobs are worsening at the same time.
The Financial Accountability Office also noted that Ontario’s average hourly wage increased 4.1% year over year in the first quarter, reaching $38.85 per hour. This suggests that the labour market is not weakening in only one direction. Instead, it is showing a more complex picture: fewer jobs, continued wage growth in some sectors and longer job-search periods at the same time. For job seekers, the key question is not only whether jobs exist, but which industries are still hiring, whether job requirements are rising, and whether entry-level positions are being squeezed.
The future direction of Ontario’s job market will still depend on factors such as U.S. tariffs, business investment, consumer demand, public-sector hiring and the interest rate environment. For newcomers and young job seekers, the more immediate challenge is how to adjust job-search directions early, keep application records and pay attention to support from local employment services, school career centres and community organizations amid fewer openings and stronger competition.（LJI by Yuanyuan）
