The August 2025 Ontario Labour Market Report reveals both progress and pressure for employers across the province. While the unemployment rate dipped slightly to 7.7%, total employment also declined, showing that more Ontarians exited the workforce rather than new jobs being added.
At Divino Business Solutions, we translate data like this into actionable insights for Ontario employers. Understanding how shifts in the labour market affect hiring, payroll, and retention helps you plan proactively — not reactively.
Employment Trends from the August 2025 Ontario Labour Market Report
Here’s what stood out in the latest labour market data for Ontario employers:
- Employment: –26,000 jobs
- Unemployment rate: 7.7% (↓ from 7.9%)
- Labour force participation: –41,000
- Average hourly wage: $37.61 (+2.7% YoY)
Although the unemployment rate fell, it largely reflects fewer people looking for work. A shrinking labour force and modest wage growth signal caution on both sides of the hiring table.
“Ontario’s labour market is cooling — employers are hiring carefully, and workers are weighing stability over change.”
Industry Breakdown in Ontario’s August 2025 Labour Market Report
Not every sector moved in the same direction.
Growth sectors
- Wholesale & Retail Trade (+10,100 jobs) – Sustained consumer activity keeps hiring steady.
- Business & Support Services (+7,700 jobs) – Increased need for operations and administrative talent.
Declining sectors
- Educational Services (–17,900 jobs) – Seasonal and funding-based shifts.
- Professional, Scientific & Technical Services (–13,600 jobs) – High-skill roles tightening as firms pause new projects.
Employers in slower sectors may consider flexible solutions like temporary or contract staffing to stay agile without expanding full-time payrolls.
What the August 2025 Labour Market Report Means for Employers
- Retain Your Workforce
With fewer active job seekers, retention is critical. Review compensation, recognition, and scheduling to reinforce loyalty and reduce costly turnover. - Hire Strategically
Target industries and skill sets that continue to grow. Hiring in resilient sectors — such as retail and support services — can help stabilize operations during uncertainty. - Strengthen HR Planning
Use these monthly reports to guide workforce strategy. A professional HR Management & Planning review ensures your policies, pay structures, and compliance processes align with evolving labour trends.
Bottom Line
The August 2025 Ontario Labour Market Report reflects an economy that’s steady but cautious. For Ontario employers, the takeaway is clear: focus on retention, be selective in hiring, and stay informed through ongoing HR planning.
If you’d like help interpreting how these trends affect your business, connect with Divino Business Solutions today to book a free HR audit.
