Niagara’s labour market story throughout 2025 was shaped by several trends underscored by growth and uncertainty, and opportunities and pressures. Our annual Labour Market Report highlights these trends. However, it’s important to note that behind all these data points are people – youth looking for their first job, small business owners navigating an uncertain economic environment, newcomers creating a new life in a new community, and employers searching for talent.
A Region That’s Growing
We saw that Niagara continues to grow, with much of population growth due to migration – be it international or from other areas of Ontario. Almost half of people moving to Niagara were between the ages of 25 and 44 – individuals in their core working years.
At the same time, long-term workforce sustainability depends on how we support labour market integration and participation across generations. A growing population does create opportunity, but engaging in these opportunities is what helps economic growth and resilience.
A Softening Labour Market
Throughout 2025 the local labour market showed signs of stability amidst a year of uncertainty and change. Though employment and labour market participation declined in the later part of the year, unemployment remained similar to historic trends. The message here is that the labour market cooled from the peaks and tight markets seen throughout 2022 and 2023.
With more people actively looking for work, fewer jobs being posted online, and increased competition in hiring in some sectors, employers continue to report difficulty attracting candidates with the specific skills and experience they need. This tension between softer overall conditions and persistent skill-matching challenges highlight a deeper issue: alignment. Workforce development is about ensuring the right skills, community supports, and pathways are in place so that people and businesses can connect successfully in a rapidly changing environment.
An Evolving Economy
Niagara’s economy is evolving, and change is being felt across sectors. These evolutions are happening across a business landscape made up of primarily small employers. Of the 13,700+ businesses with employees in Niagara, 98% employ fewer than 100 people. While essential to the local economy, employers are navigating challenges like rising costs, changes in consumer demand, and workforce pressures alongside limited HR capacity. We often hear from employers they need clearer navigation, coordinated support and outreach, and practical supports that help navigate these conditions.
There is also talent in the region seeking employment. More than 10,000 people accessed Integrated Employment Services between April 2024 and March 2025, over half of whom are aged 25-44 years old. But we continue to hear that systemic barriers like housing affordability, transportation challenges, childcare access, digital divides, and credential recognition challenges affect participation in the labour market, and in successfully finding work.
Looking Ahead
Workforce development is about more than filling vacancies. It’s about building a resilient regional economy where opportunity is accessible and inclusive. So, our action plan moving forward focuses on:
We’ll continue to engage the community through these actions realizing that the path forward is not simple, but it is more successful when we move forward together.
Read the full 2025–26 Annual Labour Market Report to explore the trends shaping Niagara’s workforce and what they mean for our community.
We are collecting data to better understand who is looking for work and what kind of opportunities jobseekers are searching for. This data is completely anonymous and non-personally identifiable.
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