July to September, 2021

Introduction

About the Ontario Employment Report

The Ontario Employment Report is released four times a year and provides an assessment of the current trends and developments in the Ontario labour market. The Ontario Employment Report is a companion report to the Ontario Economic Accounts, which provides an overall assessment of the current state of the Ontario economy.

Methodological note

In the current issue, year-over-year change represents change between the averages in the third quarter of 2020 and the third quarter of 2021. Note that the Ontario Economic Accounts report primarily shows changes between the previous and the current quarter.

This report uses seasonally adjusted data in charts displaying data with a monthly frequency in the Overview section.

Unadjusted data is used in charts and tables showing the changes for the current quarter compared with the same quarter for the previous year. Unadjusted data is also used to calculate annual averages, year-to-date averages and 2021 third quarter averages.

All estimates in this report are based on Statistics Canada’s Labour Force Survey (LFS), which measures the current state of the national provincial and territorial labour market. The LFS is based on a household survey carried out monthly by Statistics Canada in reference weeks of the month. The reference periods for the three months of the third quarter of 2021 are July 11 to 17, August 15 to 21 and September 12 to 18.

Impact of COVID‑19 on the labour market

Beginning in mid-March 2020, travel restrictions, business closures and physical distancing measures were put in place by various levels of government to help contain the spread of COVID‑19 and protect the health of Ontarians. These restrictions and public health measures were in place to varying degrees throughout 2020 and 2021.

In June 2021, Ontario transitioned into the Roadmap to Reopen^{footnote 1[1]} and gradually began lifting public health measures. On July 16, 2021, Ontario moved to Step 3 of the Roadmap to Reopen, which focused on the resumption of additional indoor services with larger numbers of people. Effective September 25, 2021, capacity limits were increased in many indoor settings where proof of vaccination was required as well as in certain outdoor event venues. As a result, employment continued to increase in every month of the third quarter of 2021 (July, August and September). As of September 2021, employment surpassed its pre-covid level in February 2020.

Overview

Ontario’s labour market overview

Employment:

• +414,900 net jobs in Q3 2021, year-over-year
• +332,500 net full-time jobs in Q3 2021, year-over-year
• +73,600 jobs in September 2021
• +135,500 full-time jobs in September 2021

Unemployment rate:

• 8.1% in the third quarter of 2021
• 7.3% in September of 2021

Year-over-year, Ontario’s employment increased by 5.9% (+414,900) in the third quarter of 2021, while Canada’s employment increased by 5.1% (+935,900). Employment in Ontario in the third quarter of 2021 was 0.3% higher than in the same quarter in 2019, prior to the COVID‑19 pandemic.

Ontario’s unemployment rate was 8.1% in the third quarter of 2021, higher than the Canadian rate of 7.3%. It was 3.0 percentage points lower than in the third quarter of 2020, but 2.2 percentage points higher than in the same quarter of 2019.

In September 2021, Ontario’s employment increased by 1.0% (+73,600), and for the first time since the beginning of the pandemic, has exceeded its pre-pandemic level in February 2020 (+8,600 or +0.1%). Canada’s employment increased by 0.8% (+157,100), also exceeding its pre-pandemic level of employment (+900 or +0.0%).

In September 2021, Ontario’s unemployment rate decreased by 0.3 percentage point (from 7.6% to 7.3%) and Canada’s unemployment rate decreased by 0.2 percentage point (from 7.1% to 6.9%). Ontario’s unemployment rate continued to exceed its pre-pandemic rate of 5.5%, since employment growth (+0.1%) had not kept pace with labour force growth (+2.1%) since February 2020.

Year-over-year overview

Ontario’s labour market, 2008-2021

Between the third quarters of 2020 and 2021:

• employment gains were concentrated in full-time employment (+332,500, +5.7%), while part-time work also increased (+82,300, +6.8%);
• employment increased in the private sector (+6.0%), the public sector (+9.3%) and for those who are self-employed (+1.2%);
• employment increased in services-producing industries (+6.6%) and goods-producing industries (+3.2%);
• employment increased in every region except for Northern Ontario (-0.7%), with Southwestern Ontario (8.1%) experiencing the highest rate of employment growth; and
• employment increased for all age groups with youth experiencing the highest rate of employment growth (+16.0%) compared to other age groups.

Type of Work quarterly details

Employment change by work status

Year-over-year, part-time employment increased by 6.8% and full-time employment increased by 5.7% in the third quarter of 2021. As of September 2021, full-time employment in Ontario exceeded its pre-pandemic level in February 2020 (+0.5%), while part-time employment was somewhat below its pre-pandemic level (-1.4%).

Overall, part-time workers have been disproportionally impacted by the COVID‑19 pandemic as they are more likely to work in industries that experienced the largest declines in employment, including accommodation and food services and retail trade.

Employment change by employment sector

Year-over-year, private sector employment increased by 6.0%, public sector employment increased by 9.3% and self-employment increased by 1.2%.

Employment change by above-average wage and below-average wage industries

Year-over-year, paid employment increased in below-average wage industries by 5.2% and employment in above-average wage industries increased by 8.8%.

Sector and occupation quarterly details

Employment change by industry, goods-producing industries

Employment in goods-producing industries increased in the third quarter of 2021, compared to the same period in 2020. The overall gain was driven by increases in construction (+5.2%) and manufacturing (+2.7%), while utilities experienced the largest rate of employment growth (+8.3%). Employment declined in forestry, fishing, mining, quarrying, oil and gas (-7.4%) and agriculture (-3.7%).

Employment change by industry, services-producing industries

In the third quarter of 2021 compared to the same period in 2020, employment increased in all services-producing industries, except for other services (excluding public administration) (-7.5%). Among services-producing industries, professional, scientific and technical services (+15.1%) experienced the largest employment gains followed by health care and social assistance (+6.3%), accommodation and food services (+15.2%) and wholesale and retail trade (+3.8%).

Employment change by occupational group

Year-over-year, employment increased in every broad occupational group, except manufacturing and utilities occupations (-1.6%). Occupations in business, finance and administration (+14.0%) experienced the largest increase in employment followed by sales and service occupations (+3.7%), natural and applied sciences and related occupations (+8.5%) and  occupations in education, law and social, community and government services (+6.8%). Occupations in business, finance and administration (+14.0%) experienced the highest rate of employment growth in the third quarter of 2021 compared to the third quarter of 2020.

Geographic region

Ontario regions

Employment change by Ontario region

Year-over-year, employment increased in all Ontario regions in the third quarter of 2021, except for Northern Ontario (-0.7%). Southwestern Ontario experienced the highest rate of growth (+8.1%), followed by the Greater Toronto Area (GTA)^{footnote 2[2]} (+6.7%), Eastern Ontario (+5.2%) and Central Ontario (4.9%).

Unemployment rates by Ontario region

In the third quarter of 2021, the unemployment rate decreased in every region. The GTA had the highest unemployment rate (9.3%), while Eastern Ontario had the lowest unemployment rate (6.5%).

Participation rates by Ontario region

In the third quarter of 2021, the labour force participation rate varied among economic regions, ranging from 58.6% in Northern Ontario to 68.6% in the GTA.

Age and gender quarterly details

Employment change by age group and gender

Compared to the same quarter last year, employment increased for all age groups in the third quarter of 2021. Youth aged 15 to 24 posted the highest rate of employment growth (+16.0%), followed by core-aged workers aged 25 to 54 (+4.6%) and older workers aged 55 years and over (+3.5%).

Year-over-year, employment increased more for females (+6.8%) than males (+5.0%).

Overall, employment losses during the COVID‑19 pandemic have been much more severe for youth and women as they were more likely to work in industries that were heavily impacted by the pandemic, such as accommodation and food services and retail trade. 

As of September 2021, employment of core-aged people surpassed its pre-pandemic level in February 2020 (+1.0%), while employment of youth (-0.9%) and older workers (-1.8%) remained below its pre-pandemic level.

As of September 2021, employment for females (+0.6%) exceeded its pre-pandemic level in February 2020 while employment for men was still below its pre-pandemic level (-0.4%).

Unemployment rates by age group and gender

In the third quarter of 2021, youth had the highest unemployment rate (14.1%), followed by older people (7.7%) and core-aged people (6.8%). Compared to the same period last year, the unemployment rate decreased by 12.0 percentage points for youth, 1.7 percentage points for core-aged people and stayed unchanged for older people.

In the third quarter of 2021, the unemployment rate for females (8.3%) was higher than that for males (7.9%). Compared to the same period last year, the unemployment rate decreased by 3.4 percentage points for females and 2.6 percentage points for males.

Participation rates by age group and gender

In the third quarter of 2021, core-aged people had the highest labour force participation rate (87.2%), followed by youth (66.9%) and older people (38.3%). Compared to the third quarter of 2020, the participation rate increased by 0.5 percentage point for youth, 1.7 percentage points for core-aged people and 0.5 percentage point for older people.

Men had a higher participation rate (70.9%) than women (61.2%) in the third quarter of 2021. Compared to the same period last year, the participation rate increased by 0.7 percentage point for males and 1.2 percentage points for females.

Education level and immigrant status quarterly details

Employment rates by education level and immigrant status (core-aged population)

In the third quarter of 2021, those with less than a high school diploma continued to have the lowest employment rate (54.3%), while those with a university degree recorded the highest employment rate (86.2%), followed by those with a postsecondary certificate or diploma (83.7%).

Year-over-year, the employment rate increased for most education levels, led by those with a university degree (+3.6 percentage points).

Those born in Canada had the highest employment rate (83.2%), while very recent immigrants continued to have the lowest employment rate (76.6%).

Year-over-year, the employment rate increased for all groups by immigrant status, led by very recent immigrants (+7.1 percentage points).

Unemployment rates by education level and immigrant status (core-aged population)

In the third quarter of 2021, those with a university degree had the lowest unemployment rate (5.8%) while those with less than a high school diploma had the highest unemployment rate (14.8%). Year-over-year, the unemployment rate of core-aged people decreased for all education levels except for those with less than a high school diploma (+4.7 percentage points).

Year-over-year, the unemployment rate also decreased for all groups by immigrant status. In the third quarter of 2021, those born in Canada had the lowest unemployment rate (6.1%), while recent immigrants had the highest unemployment rate (8.5%).

Participation rates by education level and immigrant status (core-aged population)

In the third quarter of 2021, those with a university degree continued to have the highest participation rate (91.4%), while those with less than a high school diploma had the lowest participation rate (63.7%). Year-over-year, the participation rate increased for all groups by education level.

In the third quarter of 2021, recent immigrants and very recent immigrants continued to have the lowest participation rates compared to established immigrants and those born in Canada. Year-over-year, the participation rate increased for all groups by immigrant status.

Wages quarterly details

Average hourly wages by employment status, 1997-2020

Over the last two decades, the average hourly wage increased in real terms^{footnote 3[3]} (i.e. after accounting for inflation) from $25.18 in 1997 to $30.24 in 2020, with the growth rate averaging 0.8% per year. Over this period, real wages grew annually at an average growth rate of 0.8% for part-time workers and 0.7% for full-time workers.

Hourly wage growth by type of work

In the third quarter of 2021, the average hourly wage of Ontario employees was $30.55, an increase of 0.7% from the third quarter of 2020.^{footnote 4[4]}

The average hourly wage for part-time positions decreased by 2.1%, while the average hourly wage for full-time workers increased by 1.5%.

Consumer Price Index inflation over the third quarter of 2021 compared to the third quarter of 2020 was 4.0%.^{footnote 5[5]}

Average hourly wage rate and wage growth by occupational group

Year-over-year, six broad occupational groups experienced growth in average hourly wages, while the remaining four experienced a decrease in average hourly wages. Occupations in art, culture, recreation and sport (+8.1%), management (+5.3%) and trades, transport and equipment operators (+3.0%) experienced the largest increase in average hourly wages. The three broad occupational groups that experienced the largest decrease in average hourly wages were manufacturing and utilities (-2.5%), health (-2.3%) and sales and service (-1.5%).

Appendix I

Net employment between February 2020 and September 2021

Below are highlights (seasonally adjusted) of recent trends in Ontario’s labour market between February 2020 and September 2021.

Appendix II

Overview of annual employment ten-year review

Employment by region (000)

Unemployment rate by region (%)

Total employment by CMA (000)

Greater Toronto Area

Central Ontario

Eastern Ontario

Southwestern Ontario

Northern Ontario

Overview of quarterly employment year-over-year

Employment by Region (000)

Unemployment Rate by Region (%)

Total Employment by CMA (000)

Greater Toronto Area

Central Ontario

Eastern Ontario

Southwestern Ontario

Northern Ontario

Overview of monthly* labour force characteristics

*Seasonally adjusted

Note: All estimates in this appendix are based on Statistics Canada’s Labour Force Survey.