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According to Statistics Canada, Ontario lost 67,000 jobs in January, and the unemployment rate stayed high at 7.3 per cent. Fewer people looked for work, which caused the labour force participation rate to drop. Among youth aged 15 to 24, the rate fell to 58.9 per cent. Statistics Canada says the decline in participation was largest among youth, dropping 2.7 percentage points from December, highlighting the challenges young Ontarians face in the current job market.
Statistics Canada data shows that Ontario’s job losses in January 2026 follow months of weakening labour market conditions. In December 2025, Ontario’s unemployment rate was 6.7 per cent, before rising to 7.3 per cent in January 2026. One year earlier, in January 2025, the unemployment rate was lower, at 6.1 per cent. At the same time, the labour force participation rate dropped from 65.4 per cent in December 2025 to 64.4 per cent in January 2026, showing that fewer people were actively looking for work.
Eric Cam, an economics professor and undergraduate program director at Toronto Metropolitan University (TMU), described the current job market as “in very rough shape,” especially for young people entering the workforce.
“Canada’s real GDP growth has been stagnant. The country isn’t getting wealthier, and firms are not growing, so new jobs are not being created,” said Cam. He emphasized that young people are the ones who are affected by the downturns because they want full-time jobs, but those do not exist.
Statistics Canada data also shows that Ontario is falling behind other provinces. While the province lost 67,000 jobs in January, employment grew in Alberta, which added 20,000 jobs, as well as in Saskatchewan and Newfoundland and Labrador. Across Canada, full-time jobs increased slightly, but part-time positions fell, limiting opportunities that many students and young workers rely on. The report also showed a drop in youth labour force participation nationwide, suggesting that many young people are stepping back from looking for work.
Kijoci Tharmapalan is a first-year biomedical science student at TMU, who says she has applied to over 100 jobs in the past month, heard back from only a handful, and remains unemployed.
“Even entry-level retail jobs ask for years of experience. It’s stressful because I need a job to pay for school and daily expenses,” said Tharmapalan.
He added, “There are so many job openings, but the problem is high requirements, and it is frustrating when you see so many vacancies but can not get hired because of the experience they expect from beginners.”
Matthew Tobias, a first-year psychology student at TMU, said he has been looking for work for two years and finds it discouraging that even entry-level jobs require experience he does not yet have.
He said he believes that entry-level jobs are supposed to give students experience, but these days, employers are asking for years of experience, even for basic positions.
“People with more experience get picked over you, even if you do well in interviews, and I worry about how I will find a stable job in the future if I can not even get part-time work now,” said Tobias.
Ava Marmorado, a first-year sport media student at TMU, says that the high expectations make it difficult for students to gain their first work experience.
“I think Toronto could create more opportunities, specifically for young people and students, with requirements that match their experience level,” said Marmorado. She expressed that it would make a big difference if entry-level and part-time jobs were accessible to beginners.
According to Devin Taylor, Manager of Strategic Issues, Policy & Research for Toronto Employment and Social Services (TESS), the monthly Ontario Works caseload averages 101,000 individuals and families, many of whom face significant barriers to finding work.
“The lack of job opportunities, especially for young or underemployed residents, contributes to financial struggles, housing challenges, and food insecurity,” said Taylor.
He added, “Because caseload growth usually lags economic downturns, we expect more residents to need employment support in the second half of 2026.”
Juan Miguel Palmalaklakin, a second-year marketing student, said if students can’t get a basic job now, it’s hard to see how they will secure stable work in the future.
“There should be jobs specifically for students, so we are not competing with older workers who already have experience,” said Palmalaklakin.
Many students said they are unsure about finding work once they graduate. Tharmapalan said, “I do not think I will be able to get a job right away after I finish my degree. I might have to do a master’s or med school just to stay in the running.”
Tobias expressed concern about his future and not being able to find a stable job.
Marmorado added, “I hope I will find a job after graduation, but I am not 100 per cent sure. It feels like the market has not improved since last year.”
Cam explained that Toronto’s labour market faces added challenges because the city is home to a large portion of Canada’s population growth. He explained that while immigration brings many benefits, the influx of new residents puts pressure on available jobs.
“Half a million people come to Canada every year, and more than half settle in the GTA. That puts extra pressure on Toronto’s job market,” said Cam.
He also highlighted that long-term solutions require government policies that encourage economic growth and job creation, rather than short-term fixes.
Saba Iqbal is a fourth-year journalism student and a storyteller for, <i>On The Record</i>, winter 2026.
In producing this story, we used Clipto and Otter.ai for transcription, and Grammarly for grammar and spelling checks.
