Windsor’s job market is showing sharp signs of strain as the region posted an unemployment rate of 11.2 per cent in June, the highest in Canada and its worst level since the early months of the pandemic.
New labour-force data released Friday shows Windsor’s unemployment rate climbed 0.4 percentage points last month, even as joblessness in Ontario dipped slightly to 7.8 per cent and the national rate fell to 6.9 per cent.
The number of unemployed residents in Windsor jumped by 800, reaching 29,200 more than double the 14,200 recorded in June 2023.
“These numbers are very concerning,” said Workforce WindsorEssex CEO Justin Falconer. “The number of unemployed people tells you the real story on the ground. The highest unemployment rate we’ve had in the past 14 years was 17.5 per cent during Covid in May 2020. We’re not there yet, but we’re certainly out of the norm for us.”
Region Outpaces the Rest of Ontario in Job Losses
Windsor now sits 1.2 percentage points above the next-closest city, Peterborough, at 10 per cent. Across southwestern Ontario’s manufacturing belt, the pain is spreading:
London saw its rate rise 0.3 points to 7.2 per cent,
Guelph jumped 0.9 points to 5.8 per cent,
Kitchener-Waterloo recorded a slight decline to 7.2 per cent.
The downturn coincides with another troubling milestone: Windsor-Essex recorded no population growth in June, the first time in 48 months the region has not expanded. The population held steady at 409,800.
“It’s the first time in four years we haven’t grown,” Falconer said. “Over those 48 months, we’ve added 44,000 people who are 15 years of age or older.”
Tariffs Blamed for Intensifying Slowdown
Falconer said the spike in unemployment is “clearly linked” to the mounting trade tensions with the United States and the start of President Donald Trump’s tariff campaign. Since Trump took office in January, Windsor’s unemployment rate has risen 2.1 percentage points.
The White House escalated the pressure Thursday night, with Trump warning he will raise tariffs on Canada to 35 per cent on August 1 if the two countries fail to reach a new trade agreement.
The proposed tariff would exempt CUSMA-compliant goods—including vehicles and auto parts which are subject to the existing sector-specific 25 per cent rate.
“The business environment is not good in Canada right now, and Windsor is certainly on the frontlines of that,” Falconer said. “About 8.8 per cent of workers in Canada are in U.S.-trade-dependent jobs, but in the Windsor-Sarnia economic region, it’s 15.8 per cent. About one in five local workers are in manufacturing, compared to 9.9 per cent nationally.”
Youth Hardest Hit as Thousands Exit the Workforce
The number of people employed in the Windsor region fell by 2,700 in June. The labour force itself contracted by 2,000, dropping to 261,000 as job-seekers, particularly youths abandoned their search.
Another 2,000 people are now counted as not looking for work.
The unemployment rate among workers aged 15 to 24 climbed to 17 per cent, representing 7,400 unemployed youths.
“That number has been coming down in recent months,” Falconer said. “But I wonder how much that is due to discouragement and people having stopped looking for jobs.”
Sector-by-Sector Breakdown
The sharpest job losses last month came in:
Healthcare: 1,500 | Manufacturing: 1,400 | Construction: 800 | Accommodation and food services: 800
Some sectors, however, posted gains:
Wholesale and retail trade: +800
Finance, insurance, real estate and leasing: +700
Professional, scientific and technical services: +700
Despite those increases, the broader regional picture remains deeply challenging as businesses brace for further fallout from U.S. protectionist policies and local workers absorb the consequences.
