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Canadian Job Market Booms In West, Slumps In East, Gap To Widen: BMO
Research / Geographic Variation
Canada’s seemingly stable jobless rate is hiding widening disparities among cities (and provinces), according to BMO Capital Markets. The bank’s latest Labour Market Performance Ranking shows job markets in Western Canada are largely improving, while Eastern Canada—Southern Ontario in particular—dominates among the worst-performing cities. The bank warns this divergence won’t be resolved any time soon, and is expected to widen.
After the initial post-pandemic boom that saw growth across all provinces, regional divergences are returning, says BMO. The bank sees Western Canada continuing to grow in the near-term, with Alberta and Saskatchewan forecast for at least 2% real GDP growth, a benefit driven by soaring oil prices and weaker exposure to tariff uncertainties.
Eastern Canada’s heavy exposure to a pricey housing downturn and population growth changes has turned into a slump. The bank is forecasting that real GDP in Ontario and Quebec will fall below the 1% national average. This has—and will continue to have—an impact on local job markets.
“In the job market, activity has seemingly gone quiet with employment growth up very modestly from a year ago and the jobless rate little changed. But there is churn below the surface, across industries, job types and regions. The latest Labour Force Survey results shine a clear light on the emerging regional cracks in the job market,” explains BMO Senior Economist Robert Kavcic.
Resource-driven economies dominate the bank’s list, largely located in the Prairies. Four out of five of the top-ranking cities are in Alberta and Saskatchewan: Calgary (#1), Saskatoon (#2), Edmonton (#3), and Regina (#4). Rounding out the list is Sudbury (#5), one of the few Ontario cities to rank towards the top of the list.
Winnipeg ranks in the middle of the pack in 16th place, but ahead of Vancouver (21st), Ottawa (23rd), Montreal (25th) and Victoria (26th).
The downturn is largely concentrated in real estate-heavy Southern Ontario. The province’s cities occupy 7 of the bottom 10 cities, and include: Toronto (#27), Kitchener (#29), Barrie (#30), St. Catharines (#31), Windsor (#32), and London (#33). While London is last, it does top one list: at 9.1%, the city’s unemployment rate is the highest of any city in Canada. That’s nearly 1 in 10 workers unable to find a job.
Click here to access the: BMO Regional Labour Market Report Card | April 10, 2026
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