Uncertainty has gripped Niagara’s job market as the region’s unemployment rate increased to 6.5 percent in March 2025, up from 6.0 percent in February. The half-point rise follows a national trend, with Canada’s overall jobless rate climbing to 6.7 percent last month, representing a 0.1 percentage point increase from February figures.
St. Catharines-Niagara was among the cities with notable unemployment increases, highlighting ongoing economic challenges in the region. This upward shift suggests a broader slowdown affecting multiple job sectors across the country. Experts point to seasonal adjustments and changing labor market conditions as key factors in the local unemployment picture.
Niagara’s rising unemployment reflects nationwide economic cooling, with seasonal factors and shifting labor dynamics driving local job market challenges.
The situation in Niagara reflects wider provincial struggles. Ontario’s unemployment rate reached 7.5 percent in March, up 0.2 percentage points from February. The province’s rate remains significantly above western regions like Saskatchewan, which reported 4.9 percent unemployment after a 0.5 percentage point decrease. Nearby cities face similar challenges, with Hamilton at 7.2 percent and Toronto experiencing an 8.7 percent jobless rate.
Despite the increase, Niagara’s 6.5 percent unemployment places it in the middle range for Ontario cities. The region continues to fare better than harder-hit areas like Windsor (9.3 percent) and Peterborough (9.1 percent). Smaller cities like Thunder Bay show stronger job markets, with unemployment at just 4.1 percent.
Niagara’s economy, heavily influenced by tourism and cross-border trade, often experiences cyclical employment patterns. These seasonal shifts play a considerable role in the region’s job market trends throughout the year. The current rate is slightly better than neighboring Niagara Falls, New York, which reported 6.8 percent unemployment for the same period.
Provincial officials note that smaller statistical samples in mid-sized cities can sometimes lead to wider monthly fluctuations in reported unemployment figures. Sectors like retail, hospitality, and manufacturing may be contributing considerably to the recent job losses in the region.
Government programs, including infrastructure investments and employment insurance, continue to provide support for job seekers during this period of rising unemployment across the Niagara region and Ontario as a whole.
Amid shifting economic conditions, these programs reflect ongoing efforts to support communities across the region. Explore more stories shaping Niagara’s future on Marketplace Niagara.
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