The government has rolled out new relief measures
Ontario shed 38,000 jobs in the second quarter of 2025 as US tariffs weighed heavily on the province’s industrial base, according to a report released Thursday by the Financial Accountability Office of Ontario (FAO).
The FAO said the unemployment rate climbed to 7.8%, marking the ninth consecutive quarterly increase and the highest level since 2012, excluding the pandemic. That is up from a low of 5.2% recorded in early 2023.
Manufacturing was hardest hit, losing 29,400 jobs, followed by business, building, and support services, which shed 14,900, CBC News reported. Additional losses were recorded in transportation, warehousing and agriculture. The FAO attributed the sharp declines to tariffs imposed by US president Donald Trump on Canadian exports.
While some gains were seen in finance, insurance, real estate, and professional services, the watchdog warned that tariffs had already reduced international merchandise exports by more than 10%. Windsor recorded the steepest employment drop among Ontario cities, with its jobless rate climbing to 11.2%.
Government response
Opposition parties seized on the numbers to criticize premier Doug Ford’s handling of the economy. “These numbers are truly alarming. Ontario workers are facing the worst job losses in more than a decade, with the manufacturing sector hit especially hard,” said NDP member of Provincial Parliament Jessica Bell.
“Windsor families are being left to carry the weight of US tariffs, and a weak provincial government with no plan to protect jobs,” said Windsor West NDP MPP Lisa Gretzky. “Our city has the workers, the skills, and the history of driving Ontario’s economy, so why are our people losing good jobs and being left with nothing but uncertainty.”
Liberal finance critic Stephanie Bowman accused the government of breaking its election pledge to shield Ontario from US policies. “Never has a government spent so much to deliver so little,” she said. “Working families are struggling, we are building housing at the slowest rate in a decade, and many of the businesses impacted by tariffs are not eligible for help.”
A spokesperson for Ontario’s finance minister defended the government’s actions, saying it was “using every tool we have to protect the over 800,000 jobs in Ontario’s world-class manufacturing sector.”
The Ford government this week announced $70 million to expand training and employment programs in industries hit by tariffs, alongside $1 billion in emergency loans for struggling businesses. Both measures are part of a larger $5-billion support plan.
Bowman argued the relief was insufficient, describing the measures as “mostly temporary” and unlikely to offset long-term losses.
The FAO said it would continue to monitor Ontario’s economic performance and provide updated forecasts in its next outlook.
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