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 2019 and the third quarter of 2020. 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 2020 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 2020 are July 12 to 18, August 9 to August 15 and September 13 to 19.

Impact of COVID-19 on the labour market

Beginning in mid-March 2020, a number of 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. As a result of the pandemic, Ontario experienced an unprecedented decline in employment during the period between February and May. In June, employment started to rebound reflecting the early stages of reopening the provincial economy.

The third quarter of 2020 included data from July through September, during which the gradual reopening of the economy continuedfootnote 1 and employment continued to grow.

Appendix I of this report provides highlights of recent trends and challenges in Ontario’s labour market as a result of COVID-19 between February and September.

Overview

Ontario’s labour market overview

Employment:

  • -408,400 net jobs in Q3 2020, year-over-year
  • -307,900 net full-time jobs in Q3 2020, year-over-year
  • +167,600 jobs in September 2020
  • +182,400 full-time jobs in September 2020

Unemployment rate:

  • 11.0% in the third quarter of 2020
  • 9.5% in September 2020

Year-over-year, Ontario’s employment, decreased by 5.4% (-408,400) in the third quarter of 2020, while Canada’s employment decreased by 5.1% (-975,600).footnote 2

In September 2020, Ontario’s employment increased by 2.4% (+167,600), and Canada’s employment also increased by 2.1% (+378,200).

Ontario’s unemployment rate was 11.0% in the third quarter of 2020, higher than the Canadian rate of 10.2%.

In September 2020, Ontario’s unemployment rate decreased by 1.1 percentage points (from 10.6% to 9.5%) and Canada’s unemployment rate decreased by 1.2 percentage points (from 10.2% to 9.0%).

Year-over-year overview

Ontario’s labour market, 2008-2020

The combination line and area chart shows Ontario’s unemployment rate (line chart) and employment (area chart) from January 2008 to September 2020. Ontario’s unemployment rate has trended downwards since the 2008/09 recession, reaching 5.2% in January 2020, before it rises to 13.6% in May 2020, then falling to 9.5% in September 2020. Employment in Ontario has risen steadily since the 2008/09 recession, reaching just over 7.5 million workers in January 2020, before dropping to 6.4 million workers in May 2020, then rising to 7.2 million workers in September 2020.

The combination line and area chart shows Ontario’s unemployment rate (line chart) and employment (area chart) from January 2008 to September 2020. Ontario’s unemployment rate has trended downwards since the 2008/09 recession, reaching 5.2% in January 2020, before it rises to 13.6% in May 2020, then falling to 9.5% in September 2020. Employment in Ontario has risen steadily since the 2008/09 recession, reaching just over 7.5 million workers in January 2020, before dropping to 6.4 million workers in May 2020, then rising to 7.2 million workers in September 2020.

As a result of the pandemic’s unprecedented economic disruption, between the third quarter of 2019 and 2020:

  • the decline in employment reflected decreases in both full-time employment (-307,900, -5.0%) and part-time (-100,500, -7.6%) jobs.
  • employment declined more sharply for those who are self-employed (-9.1%) compared to those in the private sector (-5.6%) and the public sector (-1.4%).
  • employment decreased in both the goods-producing industries (-4.3%) and services-producing industries (-5.7%), with the accommodation and food services sector experiencing the largest decline in employment (-26.0%).
  • all five Ontario regions posted employment losses with the GTA experiencing the largest decline in employment (-5.3%).
  • youth experienced the largest decline in employment (-16.2%) compared to other age groups.

Type of work quarterly details

The horizontal bar chart shows a year-over-year (between the third quarters of 2019 and 2020) change in Ontario’s employment by full-time and part-time status. Total employment decreased by 5.4%, with full-time employment decreasing by 5.0%, and part-time employment decreasing by 7.6%.

The horizontal bar chart shows a year-over-year (between the third quarters of 2019 and 2020) change in Ontario’s employment by full-time and part-time status. Total employment decreased by 5.4%, with full-time employment decreasing by 5.0%, and part-time employment decreasing by 7.6%.

Year-over-year, full-time employment decreased by 5.0% and part-time employment decreased by 7.6% in the third quarter of 2020.

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

The horizontal bar chart shows a year-over-year (between the third quarters of 2019 and 2020) change in Ontario’s employment for the private sector, public sector and self-employment. Employment decreased in the private sector (-5.6%), public sector (-1.4%) and self-employment (-9.1%).

The horizontal bar chart shows a year-over-year (between the third quarters of 2019 and 2020) change in Ontario’s employment for the private sector, public sector and self-employment. Employment decreased in the private sector (-5.6%), public sector (-1.4%) and self-employment (-9.1%).

Year-over-year, private sector employment decreased by 5.6%, public sector employment decreased by 1.4% and self-employment decreased by 9.1%.

The horizontal bar chart shows a year-over-year (between the third quarters of 2019 and 2020) change in Ontario’s employment for above- and below-average wage industries, compared to the paid employment in all industries. Employment decreased in above-average wage industries by 0.7% and in below-average wage industries by 8.5%. Paid employment in all industries (excluding self-employment) decreased by 4.7%. Above-average wage industries are defined as those with wage rates above the average hourly wages of all industries in 2019.

The horizontal bar chart shows a year-over-year (between the third quarters of 2019 and 2020) change in Ontario’s employment for above- and below-average wage industries, compared to the paid employment in all industries. Employment decreased in above-average wage industries by 0.7% and in below-average wage industries by 8.5%. Paid employment in all industries (excluding self-employment) decreased by 4.7%. Above-average wage industries are defined as those with wage rates above the average hourly wages of all industries in 2019.

Year-over-year, paid employment decreased in above-average wage industries by 0.7%, while employment in below-average wage industries decreased by 8.5%.

Low-wage workersfootnote 3 have experienced the largest decline in employment due to COVID-19. Despite employment gains in the third quarter of 2020, recovery remains slower among low-wage workers.

Sector and occupation quarterly details

Employment change by industry, goods-producing industries

The horizontal bar chart shows a year-over-year (between the third quarters of 2019 and 2020) change in Ontario’s employment by industry for goods-producing industries. Employment in all goods-producing industries declined over this period except for forestry, fishing, mining, quarrying, oil and gas which saw a 2.9% growth. Construction had the largest decline in employment (-6.7%) followed by manufacturing (-2.7%), agriculture (-5.4%) and utilities (-6.2%). The overall employment in goods-producing industries decreased by 4.3%.

The horizontal bar chart shows a year-over-year (between the third quarters of 2019 and 2020) change in Ontario’s employment by industry for goods-producing industries. Employment in all goods-producing industries declined over this period except for forestry, fishing, mining, quarrying, oil and gas which saw a 2.9% growth. Construction had the largest decline in employment (-6.7%) followed by manufacturing (-2.7%), agriculture (-5.4%) and utilities (-6.2%). The overall employment in goods-producing industries decreased by 4.3%.

Employment in the majority of goods-producing industries declined in the third quarter of 2020, compared to the same period in 2019. The only exception was in forestry, fishing, mining, quarrying, oil and gas, which saw employment grow by 2.9%. Construction had the largest decline in employment (-6.7%) followed by manufacturing (-2.7%), agriculture (-5.4%) and utilities (-6.2%).

Employment change by industry, services-producing industries

The horizontal bar chart shows a year-over-year (between the third quarters of 2019 and 2020) change in Ontario’s employment by industry for services-producing industries. The majority of the services-producing industries experienced decline in employment. Finance, insurance, real estate, rental and leasing (+2.2%) and public administration (+1.4%) were the only industries that gained jobs over this period. The largest employment decline occurred in accommodation and food services (-26.0%) followed by transportation and warehousing (-12.5%), wholesale and retail trade (-4.2%). The overall employment in services-producing industries decreased by 5.7%.

The horizontal bar chart shows a year-over-year (between the third quarters of 2019 and 2020) change in Ontario’s employment by industry for services-producing industries. The majority of the services-producing industries experienced decline in employment. Finance, insurance, real estate, rental and leasing (+2.2%) and public administration (+1.4%) were the only industries that gained jobs over this period. The largest employment decline occurred in accommodation and food services (-26.0%) followed by transportation and warehousing (-12.5%), wholesale and retail trade (-4.2%). The overall employment in services-producing industries decreased by 5.7%.

Employment in the majority of service-producing industries declined in the third quarter of 2020 compared to the same period in 2019. Among services-producing industries, finance, insurance, real estate, rental and leasing (+2.2%) and public adiministation (+1.4%) were the only industries that gained jobs over this period.

Accommodation and food services (-26.0%) lost the highest number of jobs compared to the third quarter of 2019 followed by transportation and warehousing (-12.5%), wholesale and retail trade (-4.2%) and health care and social assistance (-3.5%).

Employment change by occupational group

The horizontal bar chart shows a year-over-year (between the third quarters of 2019 and 2020) change in Ontario’s employment by broad occupational group. Employment in natural and applied sciences and related occupations (+0.1%) and health occupations increased slightly. Employment in natural resources, agriculture and related occupations remained relatively unchanged. Employment in sales and service occupations (-0.1%), trade, transport and equipment operators occupations (-0.1%) and management occupations (-0.1%) declined the most followed by business, finance and administration occupations and occupations in manufacturing and utilities.

The horizontal bar chart shows a year-over-year (between the third quarters of 2019 and 2020) change in Ontario’s employment by broad occupational group. Employment in natural and applied sciences and related occupations (+0.1%) and health occupations increased slightly. Employment in natural resources, agriculture and related occupations remained relatively unchanged. Employment in sales and service occupations (-0.1%), trade, transport and equipment operators occupations (-0.1%) and management occupations (-0.1%) declined the most followed by business, finance and administration occupations and occupations in manufacturing and utilities.

Among broad occupational groups, natural and applied sciences and related occupations (+6.1%) and occupations in health (+2.1%) gained employment in the third quartet of 2020 compared to the third quarter of 2019. Employment in natural resources, agriculture and related occupations remained relatively unchanged. Employment in sales and service occupations (-10.0%) experienced the largest decline followed by occupations in trade, transport and equipment operators (-8.1%) and management occupations (-10.9%) .

Geographic region

Ontario regions

The map shows Ontario’s five regions: Northern Ontario, Eastern Ontario, Southwestern Ontario, Central Ontario and the Greater Toronto Area. This map is based on groupings of Statistics Canada’s economic regions.

The map shows Ontario’s five regions: Northern Ontario, Eastern Ontario, Southwestern Ontario, Central Ontario and the Greater Toronto Area. This map is based on groupings of Statistics Canada’s economic regions.

Employment change by Ontario region

The horizontal bar chart shows a year-over-year (between the third quarters of 2019 and 2020) change in employment in the five Ontario regions: Northern Ontario, Eastern Ontario, Southwestern Ontario, Central Ontario and the Greater Toronto Area (GTA). Employment declined in all Ontario regions over this period. The rate of employment decline was highest in Eastern Ontario (-7.1%) followed by Southwestern Ontario (-5.5%), the Greater Toronto Area (GTA) (-5.3%), Central Ontario (-5.0%), and Northern Ontario (-3.7%). The overall employment in Ontario declined by 5.4%.

The horizontal bar chart shows a year-over-year (between the third quarters of 2019 and 2020) change in employment in the five Ontario regions: Northern Ontario, Eastern Ontario, Southwestern Ontario, Central Ontario and the Greater Toronto Area (GTA). Employment declined in all Ontario regions over this period. The rate of employment decline was highest in Eastern Ontario (-7.1%) followed by Southwestern Ontario (-5.5%), the Greater Toronto Area (GTA) (-5.3%), Central Ontario (-5.0%), and Northern Ontario (-3.7%). The overall employment in Ontario declined by 5.4%.

Year-over-year, employment declined across all Ontario regions. The rate of employment decline was the largest in Eastern Ontario (-7.1%) followed by Southwestern Ontario (-5.5%), the Greater Toronto Area (GTA)footnote 4 (-5.3%), Central Ontario (-5.0%), and Northern Ontario (-3.7%).

Unemployment rates by Ontario region

The horizontal bar chart shows unemployment rates by Ontario region in the third quarter of 2020. The unemployment rate increased significantly in all Ontario regions. The Greater Toronto Area had the highest unemployment rate (13.0%) followed by Central Ontario (9.5%), Southwestern Ontario (9.0%) and Eastern Ontario (8.9%). Northern Ontario (7.9%) had the lowest unemployment rate. The overall unemployment rate for Ontario was 11.0%.

The horizontal bar chart shows unemployment rates by Ontario region in the third quarter of 2020. The unemployment rate increased significantly in all Ontario regions. The Greater Toronto Area had the highest unemployment rate (13.0%) followed by Central Ontario (9.5%), Southwestern Ontario (9.0%) and Eastern Ontario (8.9%). Northern Ontario (7.9%) had the lowest unemployment rate. The overall unemployment rate for Ontario was 11.0%.

In the third quarter of 2020, the unemployment rate increased in every region. The GTA had the highest unemployment rate (13.0%), while Northern Ontario had the lowest unemployment rate (7.9%).

Participation rates by Ontario region

The horizontal bar chart shows participation rates by Ontario region in the third quarter of 2020. The Greater Toronto Area had the highest participation rate at 67.7%, followed by Central Ontario (63.6%), Eastern Ontario (63.5%), Southwestern Ontario (59.8%) and Northern Ontario (59.5%). The overall participation rate for Ontario was 64.9%.

The horizontal bar chart shows participation rates by Ontario region in the third quarter of 2020. The Greater Toronto Area had the highest participation rate at 67.7%, followed by Central Ontario (63.6%), Eastern Ontario (63.5%), Southwestern Ontario (59.8%) and Northern Ontario (59.5%). The overall participation rate for Ontario was 64.9%.

The quarterly labour force participation rate varied among economic regions. In the third quarter of 2020, the participation rate ranged from 59.5% in Northern Ontario to 67.7% in the GTA.

Age and gender quarterly details

Employment change by age group and gender

The horizontal bar chart shows a year-over-year (between the third quarters of 2019 and 2020) change in Ontario’s employment for the three major age groups, as well as by gender, compared to the overall population. Employment declined among workers in all age groups. Ontarians aged 25 to 54 years had the highest number of job losses (-3.7%). Employment for Ontarians aged 15 to 24 years declined by 16.2% and for Ontarians aged 55 years and over declined by 3.6%. Total employment (for population aged 15 and over) declined by 5.4%. Male employment decreased year-over-year by 5.0% and female employment declined by 5.9%.

The horizontal bar chart shows a year-over-year (between the third quarters of 2019 and 2020) change in Ontario’s employment for the three major age groups, as well as by gender, compared to the overall population. Employment declined among workers in all age groups. Ontarians aged 25 to 54 years had the highest number of job losses (-3.7%). Employment for Ontarians aged 15 to 24 years declined by 16.2% and for Ontarians aged 55 years and over declined by 3.6%. Total employment (for population aged 15 and over) declined by 5.4%. Male employment decreased year-over-year by 5.0% and female employment declined by 5.9%.

Compared to the same quarter last year, employment declined among all age groups. Employment among core-aged workers (25 to 54 years) decreased the most (-3.7%), followed by youth aged 15 to 24 years (-16.2%) and older workers aged 55 years and over (-3.6%).

Year-over-year, male employment decreased by 5.0% and female employment decreased by 5.9%.

Employment losses during the COVID-19 pandemic were more severe for youth. As a group, youth are more likely to work in industries that were heavily impacted by the pandemic, such as accommodation and food services and retail trade. 

Unemployment rates by age group and gender

The horizontal bar chart shows unemployment rates for the three major age groups, as well as by gender, compared to the overall rate, in the third quarter of 2020. Youth (15 to 24 years) had the highest unemployment rate at 26.7%, followed by the core-aged population (25 to 54 years) at 8.5% and older Ontarians (55 years and over) at 7.6%. The overall unemployment rate in the third quarter of 2020 was 11.0%. The male unemployment rate was 10.5% and the female unemployment rate was 11.7%.

The horizontal bar chart shows unemployment rates for the three major age groups, as well as by gender, compared to the overall rate, in the third quarter of 2020. Youth (15 to 24 years) had the highest unemployment rate at 26.7%, followed by the core-aged population (25 to 54 years) at 8.5% and older Ontarians (55 years and over) at 7.6%. The overall unemployment rate in the third quarter of 2020 was 11.0%. The male unemployment rate was 10.5% and the female unemployment rate was 11.7%.

In the third quarter of 2020, the unemployment rate for youth (15 to 24 years) was 26.7% and remained the highest among the three age groups. The unemployment rate for core-aged (25 to 54 years) and older people (55 years and over) was 8.5% and 7.6%, respectively. Compared to the same time last year, the unemployment rate increased by 14.0 percentage points for youth, by 3.7 percentage points for core-aged people and by 3.5 percentage points for older people.

In the third quarter of 2020, unemployment rate for females (11.7%) was higher than that for males (10.5%). Compared to the same time last year, the unemployment rate increased by 5.4 percentage points for females and 5.0 percentage points for males.

Participation rates by age group and gender

The horizontal bar chart shows labour force participation rates for the three major age groups, as well as by gender, compared to the overall rate, in the third quarter of 2020. The core-aged population (25 to 54 years old) had the highest labour force participation rate at 85.4%, followed by youth (15 to 24 years old) at 66.2%, and older Ontarians (55 years and over) at 37.8%. The overall participation rate was 64.9%. The male participation rate (70.0%) was higher than the female participation rate (60.1%).

The horizontal bar chart shows labour force participation rates for the three major age groups, as well as by gender, compared to the overall rate, in the third quarter of 2020. The core-aged population (25 to 54 years old) had the highest labour force participation rate at 85.4%, followed by youth (15 to 24 years old) at 66.2%, and older Ontarians (55 years and over) at 37.8%. The overall participation rate was 64.9%. The male participation rate (70.0%) was higher than the female participation rate (60.1%).

In the third quarter of 2020, core-aged workers had the highest participation rate at 85.4%, followed by youth (66.2%) and older workers (37.8%). Compared to the previous year, the participation rate decreased among all age groups and for both males and females (by 0.8 and 0.9 percentage points, respectively).

Education level and immigrant status quarterly details

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

The horizontal bar chart shows employment rates by education level and immigrant status for the core-aged population (25 to 54 years old), in the third quarter of 2020. By education level, those with a university degree had the highest employment rate (82.6%), followed by those with a postsecondary certificate/diploma (81.6%), those with a high school diploma (69.5%), and those with less than high school education (54.9%). By immigrant status, those born in Canada had the highest employment rate (80.8%), followed by established immigrants with more than 10 years since landing (77.5%), recent immigrants with more than 5 to 10 years since landing (69.7%), and very recent immigrants with 5 years or less since landing (69.4%).

The horizontal bar chart shows employment rates by education level and immigrant status for the core-aged population (25 to 54 years old), in the third quarter of 2020. By education level, those with a university degree had the highest employment rate (82.6%), followed by those with a postsecondary certificate/diploma (81.6%), those with a high school diploma (69.5%), and those with less than high school education (54.9%). By immigrant status, those born in Canada had the highest employment rate (80.8%), followed by established immigrants with more than 10 years since landing (77.5%), recent immigrants with more than 5 to 10 years since landing (69.7%), and very recent immigrants with 5 years or less since landing (69.4%).

In the third quarter of 2020, those with less than a high school diploma continued to have the lowest employment rate (54.9%), while those with a university degree recorded the highest employment rate (82.6%), followed by those with a postsecondary certificate or diploma (81.6%).

Year-over-year, those with less than a high school diploma experienced the sharpest decline in their employment (-12.5%). 

Those born in Canada recorded the highest employment rate (80.8%), while very recent immigrants continued to have the lowest employment rate (69.4%).

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

The horizontal bar chart shows unemployment rates by education level and immigrant status for the core-aged population (25 to 54 years old), in the third quarter of 2020. By education level, those with high school education had the highest unemployment rate (11.8%), followed by those with less than high school education (10.0%), university degree holders (7.7%) and those with a postsecondary certificate or diploma (7.3%). By immigrant status, very recent immigrants with 5 years or less since landing had the highest unemployment rate (12.5%), followed by recent immigrants with more than 5 to 10 years since landing (11.1%), established immigrants with more than 10 years since landing (9.4%) and those born in Canada (7.3%).

The horizontal bar chart shows unemployment rates by education level and immigrant status for the core-aged population (25 to 54 years old), in the third quarter of 2020. By education level, those with high school education had the highest unemployment rate (11.8%), followed by those with less than high school education (10.0%), university degree holders (7.7%) and those with a postsecondary certificate or diploma (7.3%). By immigrant status, very recent immigrants with 5 years or less since landing had the highest unemployment rate (12.5%), followed by recent immigrants with more than 5 to 10 years since landing (11.1%), established immigrants with more than 10 years since landing (9.4%) and those born in Canada (7.3%).

In the third quarter of 2020, those with a postsecondary certificate or diploma recorded the lowest unemployment rate (7.3%) while those with a high school diploma had the highest unemployment rate (11.8%). Year-over-year, the unemployment rate of core-aged people for all education levels increased.

Year-over-year, the unemployment rate increased for all groups by immigrant status. In the third quarter of 2020, those born in Canada recorded the lowest unemployment rate (7.3%), while very recent immigrants had the highest unemployment rate (12.5%).

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

The horizontal bar chart shows labour force participation rates by education level and immigrant status for the core-aged population (25 to 54 years old), in the third quarter of 2020. By education level, university degree holders had the highest participation rate (89.5%), followed by postsecondary certificate or diploma holders (88.0%), high school graduates (78.8%), and those with less than high school education (61.1%). By immigrant status, those born in Canada had the highest participation rate (87.2%), followed by established immigrants with more than 10 years since landing (85.5%), very recent immigrants with 5 years or less since landing (79.3%) and recent immigrants with more than 5 to 10 years since landing (78.4%).

The horizontal bar chart shows labour force participation rates by education level and immigrant status for the core-aged population (25 to 54 years old), in the third quarter of 2020. By education level, university degree holders had the highest participation rate (89.5%), followed by postsecondary certificate or diploma holders (88.0%), high school graduates (78.8%), and those with less than high school education (61.1%). By immigrant status, those born in Canada had the highest participation rate (87.2%), followed by established immigrants with more than 10 years since landing (85.5%), very recent immigrants with 5 years or less since landing (79.3%) and recent immigrants with more than 5 to 10 years since landing (78.4%).

In the third quarter of 2020, those with a university degree continued to record the highest participation rate (89.5%), while those with less than a high school diploma had the lowest participation rate (61.1%). Year-over-year, the participation rate decreased for all education levels except for those with less than a high school diploma (+1.8 percentage points).

In the third quarter of 2020, recent immigrants and very recent immigrants continued to have the lowest participation rate compared to established immigrants and those born in Canada. Year-over-year, the participation rate increased for very recent immigrants (+6.3 percentage points) and decreased for established and recent immigrants and those born in Canada.

Wages quarterly details

Average hourly wages by employment status, 1997-2019

The line chart shows average hourly wages for all employees, full-time and part-time employees expressed in real 2019 dollars from 1997 to 2019. Real average hourly wages of all employees increased from $25.02 in 1997 to $28.34 in 2019; those of full-time employees increased from $26.86 in 1997 to $30.19 in 2019 and those of part-time employees increased from $16.98 in 1997 to $19.62 in 2019.

The line chart shows average hourly wages for all employees, full-time and part-time employees expressed in real 2019 dollars from 1997 to 2019. Real average hourly wages of all employees increased from $25.02 in 1997 to $28.34 in 2019; those of full-time employees increased from $26.86 in 1997 to $30.19 in 2019 and those of part-time employees increased from $16.98 in 1997 to $19.62 in 2019.

Over the last two decades, the average hourly wage increased in real termsfootnote 5 (i.e. after accounting for inflation) from $25.02 in 1997 to $28.34 in 2019, with the growth rate averaging 0.6% per year. Over this period, real wages grew annually at an average growth rate of 0.7% for part-time workers and 0.5% for full-time workers.

Hourly wage growth by type of work

The vertical bar chart shows a year-over-year (between the third quarters of 2019 and 2020) per cent change in Ontario’s nominal hourly wages by type of work. The average hourly wage increased by 7.2%. Hourly wages increased for both full-time (+6.8%) and part-time employees (+5.1%); permanent (+6.4%) and temporary employees (+6.9%) and employees with union coverage (+5.4%) and those without union coverage (7.6%).  Inflation during the same period was 0.0%.

The vertical bar chart shows a year-over-year (between the third quarters of 2019 and 2020) per cent change in Ontario’s nominal hourly wages by type of work. The average hourly wage increased by 7.2%. Hourly wages increased for both full-time (+6.8%) and part-time employees (+5.1%); permanent (+6.4%) and temporary employees (+6.9%) and employees with union coverage (+5.4%) and those without union coverage (7.6%). Inflation during the same period was 0.0%.

In the third quarter of 2020, the average hourly wage of Ontario employees was $30.49, an increase of 7.2% from the third quarter of 2019.footnote 6 The increase in average hourly wages can be attributed in part to a larger employment decline as a result of COVID-19 in relatively low-paying industries, such as accommodation and food services and business, building and other support services. Year-over-year, 93% of job losses occurred in industries with earnings below the average hourly wage.  

Hourly wages for full-time employees and part-time employees increased by 6.8% and 5.1%, respectively.

Consumer Price Index inflation over the same period was 0.2%.footnote 7

Average hourly wage rate and wage growth by occupational group

The horizontal bar chart shows average hourly wage rates in the third quarter of 2020 and year-over-year (between the third quarters of 2019 and 2020) growth in average hourly wage rate, by occupational group. In the third quarter of 2020, the average hourly wage rate for Ontario was $30.49 (+7.2%). The highest average hourly wage rate was for management occupations at $49.24 (+4.2%); followed by natural and applied sciences and related occupations at $40.00 (+4.5%); and occupations in education, law and social, community and government services at $38.00 (+9.4%). The lowest average hourly wage rate was for sales and service occupations at $20.09 (+7.7%).

The horizontal bar chart shows average hourly wage rates in the third quarter of 2020 and year-over-year (between the third quarters of 2019 and 2020) growth in average hourly wage rate, by occupational group. In the third quarter of 2020, the average hourly wage rate for Ontario was $30.49 (+7.2%). The highest average hourly wage rate was for management occupations at $49.24 (+4.2%); followed by natural and applied sciences and related occupations at $40.00 (+4.5%); and occupations in education, law and social, community and government services at $38.00 (+9.4%). The lowest average hourly wage rate was for sales and service occupations at $20.09 (+7.7%).

Year-over-year, all broad occupational groups experienced growth in average hourly wages. The three broad occupational groups that experienced the highest wage growth were: education, law and social, community and government services (+9.4%), manufacturing and utilities (+8.1%) and sales and service (+7.7%).

Appendix I

Employment rebounded as the economy started to reopen, but remained below February levels

Beginning in mid-March 2020, a number of 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. As a result of the pandemic, Ontario experienced an unprecedented decline in employment during the period between February and May.

In June, employment started to rebound reflecting the early stages of reopening the provincial economy.

The third quarter of 2020 included data from July, August and September, during which employment continued to grow.

Below are highlights (seasonally adjusted) of recent trends in Ontario’s labour market between February and September 2020 as a result of the COVID-19 pandemic

The horizontal bar chart shows seasonally adjusted changes in employment, unemployment rate and participation rate between February to May 2020, May to September 2020 and the net change (between February to September 2020).
Between February to May 2020, employment decreased (-1,156,500, -15.3%), as well as full-time positions (-772,100, -12.5%), part-time positions (-384,300, -28.2%), employment in service-producing industries (-926,900, -15.3%) and employment in good-producing industries (-229,600, -15.4%). Unemployment rate increased by 8.1 percentage points while participation rate decreased by 5.0 percentage points. 
Between May to September 2020, employment increased (+838,000, +11.1 pp), as well as full-time positions (+521,100, +8.4 pp), part-time positions (+316,800, +23.3 pp), employment in service-producing industries (+653,700, +10.8 pp) and employment in good-producing industries (+184,200, +12.3 pp). Unemployment rate decreased by 4.1 percentage points while participation rate increased by 4.6 percentage points. 
Between February to September 2020, employment decreased (-318,500, -4.2%), as well as full-time positions (-251,000, -4.1%), part-time positions (-67,500, -5.0%), employment in service-producing industries (-273,200, -4.5%) and employment in good-producing industries (-45,400, -3.0%). Unemployment rate increased by 4.0 percentage points while participation rate decreased by 0.4 percentage points. 
Figures are seasonally adjusted. Employment change (%) between May to September is measured from May to September relative to February levels. The change from February to September can be calculated by summing the change from February to May and the change from May to September.

The horizontal bar chart shows seasonally adjusted changes in employment, unemployment rate and participation rate between February to May 2020, May to September 2020 and the net change (between February to September 2020).

Between February to May 2020, employment decreased (-1,156,500, -15.3%), as well as full-time positions (-772,100, -12.5%), part-time positions (-384,300, -28.2%), employment in service-producing industries (-926,900, -15.3%) and employment in good-producing industries (-229,600, -15.4%). Unemployment rate increased by 8.1 percentage points while participation rate decreased by 5.0 percentage points.

Between May to September 2020, employment increased (+838,000, +11.1 pp), as well as full-time positions (+521,100, +8.4 pp), part-time positions (+316,800, +23.3 pp), employment in service-producing industries (+653,700, +10.8 pp) and employment in good-producing industries (+184,200, +12.3 pp). Unemployment rate decreased by 4.1 percentage points while participation rate increased by 4.6 percentage points.

Between February to September 2020, employment decreased (-318,500, -4.2%), as well as full-time positions (-251,000, -4.1%), part-time positions (-67,500, -5.0%), employment in service-producing industries (-273,200, -4.5%) and employment in good-producing industries (-45,400, -3.0%). Unemployment rate increased by 4.0 percentage points while participation rate decreased by 0.4 percentage points.

Figures are seasonally adjusted. Employment change (%) between May to September is measured from May to September relative to February levels. The change from February to September can be calculated by summing the change from February to May and the change from May to September.

Appendix II

Overview of annual employment ten-year review

  2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Total Labour Force (000) 7,160.9 7,227.4 7,276.4 7,383.8 7,418.6 7,426.1 7,489.5 7,579.8 7,673.0 7,890.6
Participation rate (%) 66.8 66.6 66.2 66.3 65.8 65.2 65.0 64.9 64.5 65.1
Male participation rate (%) 71.1 71.1 70.7 70.5 70.3 70 69.5 69.2 68.7 69.6
Female participation rate (%) 62.8 62.3 61.9 62.2 61.6 60.7 60.7 60.7 60.5 60.7
Total employment (000) 6,537.8 6,658.4 6,702.6 6,823.4 6,877.9 6,923.2 6,999.6 7,128.0 7,242.4 7,452.6
- Full-time (000) 5,256.1 5,373.5 5,412.0 5,489.5 5,540.0 5,618.2 5,672.6 5,778.7 5,909.0 6,065.8
- Part-time (000) 1,281.8 1,284.8 1,290.6 1,334.0 1,337.9 1,305.0 1,327.0 1,349.3 1,333.4 1,386.8
Employment-population ratio (%) 61.0 61.4 60.9 61.2 61.0 60.8 60.7 61.0 60.9 61.4
Male employment (000) 3,363.6 3,450.4 3,471.5 3,522.8 3,567.1 3,607.1 3,635.9 3,700.9 3,763.9 3,894.7
Female employment (000) 3,174.2 3,207.9 3,231.1 3,300.6 3,310.8 3,316.1 3,363.7 3,427.1 3,478.5 3,557.9
Part-time (% of total) 19.6 19.3 19.3 19.6 19.5 18.8 19.0 18.9 18.4 18.6
Goods-producing sector employment (000) 1,380.6 1,408.7 1,415.3 1,397.5 1,382.0 1,401.4 1,418.1 1,432.6 1,453.1 1,467.8
Services-producing sector employment (000) 5,157.3 5,249.7 5,287.3 5,425.9 5,495.9 5,521.7 5,581.4 5,695.4 5,789.2 5,984.8
Private sector employment (000) 4,268.2 4,339.7 4,373.0 4,447.0 4,517.0 4,540.7 4,597.3 4,690.6 4,740.6 4,863.4
Public sector employment (000) 1,254.7 1,294.3 1,286.0 1,314.0 1,305.4 1,294.1 1,306.4 1,329.1 1,376.7 1,385.9
Self-employment (% of total) 15.5 15.4 15.6 15.6 15.3 15.7 15.7 15.5 15.5 16.1
Total unemployment (000) 623.1 569.1 573.8 560.3 540.7 502.9 489.9 451.8 430.7 438.0
Unemployment rate (%) 8.7 7.9 7.9 7.6 7.3 6.8 6.5 6.0 5.6 5.6
Male unemployment rate (%) 9.4 8.2 8.3 8.0 7.5 7 6.8 6.2 5.6 5.7
Female unemployment rate (%) 8.0 7.6 7.5 7.2 7.1 6.5 6.3 5.7 5.6 5.4
Long-term (27 weeks+) (% of total) 24.9 24.1 22.7 22.9 22.8 20.0 19.9 19.5 16.9 15.1
Average unemployment in weeks 22.0 22.4 22.2 21.8 22.4 20.0 19.9 19.3 17.2 15.9
Youth unemployment rate (%) 17.4 15.9 17.0 16.2 15.7 14.7 14.0 12.3 11.9 12.1
25-54 y.o. unemployment rate (%) 7.3 6.5 6.4 6.2 5.9 5.6 5.4 5.0 4.7 4.6
55+ y.o. unemployment rate (%) 6.4 6.0 5.8 5.5 5.3 4.9 4.9 4.5 4.2 4.1
Average weekly wage rate ($) 842.35 862.45 883.12 895.56 907.17 938.09 958.5 967.44 1,001.74 1,036.51
Average hourly wage rate ($) 23.09 23.55 24.09 24.48 24.82 25.59 26.15 26.43 27.36 28.34

Employment by region (000)

  2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Greater Toronto Area 3,034.6 3,077.8 3,112.3 3,240.2 3,241.1 3,320.4 3,373.2 3,442.9 3,521.6 3,652.9
Central 1,508.1 1,552.0 1,551.4 1,559.5 1,597.2 1,597.5 1,598.0 1,655.2 1,656.9 1,690.8
Southwestern 761.7 771.1 772.9 769.4 775.0 770.5 775.8 778.4 794.3 793.5
Eastern 879.6 897.0 908.7 898.4 907.9 889.2 904.9 903.4 916.0 963.6
Northern 354.0 360.4 357.3 355.9 356.6 345.5 347.7 348.2 353.6 351.9

Unemployment rate by region (%)

  2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Greater Toronto Area 9.2 8.4 8.8 8.2 8.0 7.1 6.9 6.4 6.1 5.9
Central 8.4 7.4 7.0 6.9 6.2 5.9 5.9 5.3 5.2 5.1
Southwestern 9.1 8.1 7.8 7.7 7.0 6.9 6.1 5.6 5.2 5.5
Eastern 7.2 6.7 6.6 6.6 7.0 6.7 6.4 5.7 4.9 4.9
Northern 8.3 7.8 7.2 7.4 6.6 7.2 7.1 6.4 5.8 6.0

Total employment by CMA (000)

Greater Toronto Area

  2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Toronto 2,880.3 2,923.4 2,960.6 3,092.1 3,087.4 3,176.7 3,215.0 3,289.6 3,353.0 3,491.5
Oshawa 184.3 189.0 190.0 194.5 201.4 196.4 214.0 210.4 220.6 218.6

Central Ontario

  2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Hamilton 369.1 375.1 376.6 374.8 383.7 385.4 385.8 417.9 413.8 422.8
Kitchener 258.1 270.5 271.6 278.9 283.1 279.8 281.6 287.8 292.2 302.1
St. Catharines-Niagara 190.4 196.1 201.8 193.5 195.4 204.1 203.1 197.6 201.7 199.6
Peterborough 56.6 57.6 58.5 54.9 60.5 61.2 59.5 61.2 63.6 61.1
Brantford 67.4 68.5 67.5 68.9 68.6 69.3 70.2 72.3 70.0 78.7
Guelph 79.2 82.0 83.9 79.8 81.8 90.5 90.6 90.8 88.8 92.6
Barrie 99.1 101.5 102.3 109.4 111.6 108.4 104.2 115.6 114.6 119.2

Eastern Ontario

  2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Ottawa 515.3 517.4 535.4 523.5 533.8 531.1 543.4 546.7 557.6 590.1
Kingston 76.7 79.3 80.6 82.6 81.4 82.9 83.6 87.3 86.4 87.5

Southwestern Ontario

  2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
London 239.6 237.7 242.3 240.4 243.0 252.0 245.9 245.8 252.9 251.2
Windsor 147.5 147.9 153.3 154.8 155.2 158.0 164.1 162.8 164.5 170.4

Northern Ontario

  2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Sudbury 80.7 82.1 80.8 83.3 83.1 82.3 81.7 81.1 81.4 85.2
Thunder Bay 60.2 60.3 61.8 62.8 61.5 59.7 60.1 61.5 63.7 61.7

Overview of quarterly employment year-over-year

  2018q4 2019q4 2019q1 2020q1 2019q2 2020q2 2019q3 2020q3
Total labour force (000) 7,682.1 7,917.9 7,728.0 7,804.0 7,913.8 7,523.2 8,002.8 8,011.4
Participation rate (%) 64.1 64.8 64.2 63.6 65.4 61.1 65.8 64.9
Male participation rate (%) 68.4 69.0 68.6 68.0 70.0 66.2 70.8 70.0
Female participation rate (%) 60.0 60.7 60.0 59.3 61.0 56.2 61.0 60.1
Total employment (000) 7,302.7 7,535.2 7,268.2 7,317.0 7,472.1 6,583.0 7,535.0 7,126.6
- Full-time (000) 5,909.0 6,089.8 5,858.2 5,955.2 6096.2 5569.6 6,218.9 5,911.0
- Part-time (000) 1,393.7 1,445.4 1,409.9 1,361.8 1375.9 1013.4 1,316.1 1,215.6
Employment-population ratio (%) 60.9 61.6 60.4 59.6 61.8 53.5 61.9 57.7
Male employment (000) 3,794.3 3,919.1 3,771.2 3,827.7 3,906.0 3520.9 3,982.6 3,783.6
Female employment (000) 3,508.4 3,616.1 3,497.0 3,489.3 3,566.1 3062.1 3,552.4 3,343.1
Part-time (% of total) 19.1 19.2 19.4 18.6 18.4 15.4 17.5 17.1
Goods-producing sector employment (000) 1,463.0 1,474.2 1,411.0 1,422.8 1,474.0 1,296.4 1,512.0 1,446.4
Services-producing sector employment (000) 5,839.7 6,061.0 5,857.2 5,894.1 5,998.1 5,286.6 6,023.0 5,680.3
Private sector employment (000) 4,774.8 4,885.3 4,751.6 4,729.6 4872.6 4101.4 4,944.3 4,666.6
Public sector employment (000) 1,385.1 1,435.4 1,368.5 1,413.3 1389.3 1330.7 1,350.5 1,332.3
Self-employment (% of total) 15.6 16.1 15.8 16.0 16.2 17.5 16.5 15.8
Total unemployment (000) 379.4 382.7 459.8 487.0 441.7 940.2 467.8 884.8
Unemployment rate (%) 4.9 4.8 5.9 6.2 5.6 12.5 5.8 11.0
Male unemployment rate (%) 5.2 5.0 6.6 6.3 5.7 11.7 5.4 10.5
Female unemployment rate (%) 4.6 4.6 5.3 6.2 5.5 13.4 6.3 11.7
Long-term (27 weeks+) (% of total) 17.3 16.4 16.0 14.3 14.4 6.9 13.8 12.8
Average unemployment in weeks 17.5 17.6 16.6 15.4 15.5 11.8 14.1 15.7
Youth unemployment rate (%) 10.8 10.5 12.4 12.3 12.5 29.5 12.7 26.7
25-54 y.o. unemployment rate (%) 4.2 4.1 5.0 5.5 4.5 10.1 4.8 8.5
55+ y.o. unemployment rate (%) 3.5 3.4 4.9 4.8 4.2 9.2 4.1 7.6
Average weekly wage rate ($) 1,000.7 1,047.6 1,014.3 1,074.9 1,035.1 1,162.4 1,048.3 1128.0
Average hourly wage rate ($) 27.5 28.7 27.9 29.4 28.3 31.3 28.5 30.5

Employment by region (000)

  2018q4 2019q4 2019q1 2020q1 2019q2 2020q2 2019q3 2020q3
Greater Toronto Area (GTA) 3,545.4 3,684.9 3,563.5 3,603.6 3659.1 3205.7 3,704.3 3508.3
Central 1,696.3 1,714.2 1,650.7 1,665.2 1699.4 1493.1 1,698.7 1613.6
Southwestern 790.3 806.7 772.4 778.4 797.0 697.8 798.0 754.0
Eastern 916.1 980.5 931.6 927.6 962.8 864.6 979.3 909.5
Northern 354.5 348.8 350.0 342.0 353.8 322.0 354.8 341.5

Unemployment rate by region (%)

  2018q4 2019q4 2019q1 2020q1 2019q2 2020q2 2019q3 2020q3
Greater Toronto Area (GTA) 5.5 5.0 6.4 6.2 5.9 13.6 6.2 13.0
Central 4.1 4.7 5.2 6.4 5.1 12.0 5.5 9.5
Southwestern 4.4 4.7 6.1 7.0 4.8 12.3 6.2 9.0
Eastern 4.6 4.2 5.2 5.5 5.2 9.9 5.0 8.9
Northern 5.5 5.2 6.1 6.3 6.8 10.2 5.7 7.9

Total Employment by CMA (000)

Greater Toronto Area

  2018q4 2019q4 2019q1 2020q1 2019q2 2020q2 2019q3 2020q3
Toronto 3,380.9 3,534.9 3,393.6 3,454.3 3,492.2 3,040.0 3,545.3 3,332.7
Oshawa 219.5 209.7 222.9 214.5 227.0 200.6 214.8 214.2

Central Ontario

  2018q4 2019q4 2019q1 2020q1 2019q2 2020q2 2019q3 2020q3
Hamilton 420.7 437.6 415.1 417.0 415.4 368.4 423.1 390.5
Kitchener 302.3 303.3 295.6 302.0 306.3 260.2 303.4 277
St. Catharines-Niagara 201.8 206.8 192.4 188.2 196.0 169.8 203.1 191.8
Peterborough 66.5 59.2 62.2 52.7 62.3 49.7 60.7 51.7
Brantford 71.8 77.8 75.5 71.6 80.9 69.0 80.7 75.2
Guelph 92.9 89.0 94.4 88.2 95.3 82.7 91.8 89.3
Barrie 119.1 125.0 114.9 124.8 117.9 116.2 119.2 123.7

Eastern Ontario

  2018q4 2019q4 2019q1 2020q1 2019q2 2020q2 2019q3 2020q3
Ottawa (Ontario part) 553.7 614.1 564.9 572.3 575.2 533.7 606.2 563.1
Kingston 85.1 85.3 86.1 84.0 91.2 78.0 87.5 83.5

Southwestern Ontario

  2018q4 2019q4 2019q1 2020q1 2019q2 2020q2 2019q3 2020q3
London 247.8 261.5 246.5 260.3 244.9 232.3 251.9 257.0
Windsor 169.1 167.2 171.5 158.5 174.4 137.6 168.6 153.9

Northern Ontario

  2018q4 2019q4 2019q1 2020q1 2019q2 2020q2 2019q3 2020q3
Sudbury 84.6 85.0 84.9 81.9 85.8 74.1 85.0 79.0
Thunder Bay 61.7 62.3 59.8 59.7 62.3 53.3 62.6 58.1

Overview of monthly* labour force characteristics

  Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20
Employment 7519.3 7507.4 7525.3 7542.4 7558.3 7555.1 7,152.3 6,463.1 6,398.6 6,776.5 6,927.2 7,069.0 7,236.6
Unemployment rate 5.3 5.3 5.5 5.3 5.2 5.5 7.6 11.3 13.6 12.2 11.3 10.6 9.5
Participation rate 65.1 65.0 65.2 65.1 65.1 65.1 63.0 59.2 60.1 62.7 63.4 64.1 64.7

*Seasonally adjusted

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


Footnotes

  • footnote[1] Back to paragraph The government reopened Ontario in three stages. Ontario took a regional approach to reopening, with regions that demonstrated readiness based on trends in key public health indicators reopening first. The easing of COVID-19 restrictions in Stage 3 of reopening started on July 17 but was delayed in some regions, including Toronto. All regions in Ontario were allowed to move into Stage 3 as of August 12, 2020. Some measures remained in place, including physical distancing requirements and restrictions on large gatherings. Due to increases in COVID-19 cases, the province instituted new public health measures and restrictions as of September 19, including gathering limits for events at 10 people indoors and 25 people outdoors. Ottawa, Peel and Toronto public health unit regions entered in a modified Stage 2. On October 10, Ottawa, Peel and Toronto public health units were placed in a modified Stage 2. On October 19, York Region public health unit was also placed in a modified Stage 2. For more information on the reopening stages, please refer to the Reopening Ontario page
  • footnote[2] Back to paragraph By the LFS reference week in July, most provinces had eased COVID-19 restrictions, with the exception of some regions of Ontario, including Toronto. By mid-August, public health restrictions had eased across the country, including Ontario, and more businesses and workplaces re-opened.
  • footnote[3] Back to paragraph Low-wage workers are those with an hourly wage below $19.99.
  • footnote[4] Back to paragraph This economic region closely matches the GTA, the main exception being that it excludes the city of Burlington.
  • footnote[5] Back to paragraph Real wages are based on nominal wages deflated by the Consumer Price Index (CPI) for all items. Self-employment is excluded.
  • footnote[6] Back to paragraph Year-over-year comparison (between third quarters of 2019 and 2020) is in nominal dollars.
  • footnote[7] Back to paragraph Measured as an increase in the all-items Consumer Price Index for Ontario between July and September of 2019 and July and September of 2020.