Ontario Hiring Challenges: Navigating the Labour Market with Best Practices

Date: April 16, 2025

Summary

Ontario's labour market is undergoing significant changes, with rising unemployment rates and evolving employment regulations. Employers are encouraged to adopt best practices to effectively navigate these changes and maintain a competitive advantage.

Understanding the Current Landscape

In March 2025, Ontario's unemployment rate rose to 7.5%, an increase of 0.2 percentage points from the previous month. The province saw a decline of 28,000 jobs, particularly in full-time positions within the information, culture, and recreation sectors, as well as in commercial, construction, and other support services. ​Statistics Canada+1Job Bank+1

These statistics highlight the challenges employers face in attracting and retaining talent across various industries.

Adapting to New Employment Regulations

To promote transparency and fairness in hiring, Ontario has introduced new employment standards:

·       Pay Transparency: Effective January 1, 2026, posted job postings must include expected compensation or a salary range not to exceed $50,000.

·       Release of Employment Information: Beginning July 1, 2025, employers with 25 or more employees must provide employment-specific information in writing before or shortly after an employee's first day of work. This includes details such as the employer's legal name, contact information, place of employment, wage rate, pay period, and initial working hours.

Implementing Best Practices in Hiring

To address hiring challenges and align with new regulations, employers should consider the following best practices:

1.      Skills-based hiring: Shifting the focus from traditional degree requirements to evaluating candidates based on relevant skills and hands-on experience can broaden the talent pool. A competency-based approach could increase talent pools by 6.1 times, resulting in a substantial increase in the number of eligible candidates. ​Economic Graph

2.      Improve onboarding processes: Developing comprehensive onboarding programs that provide new hires with clear information about their roles, responsibilities, and company policies can improve employee retention and satisfaction. A strong onboarding framework can increase employee retention rates by 52% and increase productivity by 60%.  ​Devlin Peck

3.      Ongoing training and development: Investing in ongoing training programs to upskill employees keeps them engaged and prepared to meet ever-evolving job requirements.

Conclusion

Navigating the changing landscape of Ontario's labour market requires a proactive approach to hiring. By adopting best practices and adapting to new regulations, employers can effectively attract and retain top talent, ensuring long-term success in a competitive environment.