Toronto unemployment rate is totally out of control compared to other cities

Toronto has been witnessing a higher unemployment rate and slower median income growth than most other cities across the country, according to a new study. 

Stagnant Living Standards in the City of Toronto, published by conservative-leaning public policy think tank, the Fraser Institute, takes a look at the city's economic performance since 2000, comparing its median employment income, before-tax household income, and unemployment rate with those of other Canadian cities. 

The study found that Toronto's unemployment rate in 2024 was eight per cent, which is 2.1 percentage points higher than the Canadian average of 5.9 per cent and 1.7 percentage points higher than the Ontario average for large metropolitan areas (6.3 per cent). 

Source: Fraser Institute. 

According to the data, Toronto recorded the third-highest unemployment in Canada, behind Windsor and Red Deer. 

"Despite its history as an economic engine, Toronto now lags behind Canada's other large metropolitan areas on key economic metrics. Unemployment rates have been higher, and median-income growth has been slower in Toronto for a long time now," said Ben Eisen, senior fellow at the Fraser Institute and co-author of the study.

"Toronto represents about 20 per cent of the entire national economy, and its stagnation is an important contributor to Canada's dismal recent economic growth story. Given the outsized role Toronto plays in Canada's overall economy, the city's underperformance is a concern for all Canadians."

Also, while other Canadian cities posted average median income growth of 15.1 per cent between 2000 and 2023, Toronto's slipped by 0.2 per cent. 

The study notes that Toronto's unemployment closely matched the average for major cities across Ontario and Canada during the early 21st century; however, it has recorded a significantly higher unemployment rate, especially since the COVID-19 pandemic.