TORONTO—Torontonians have experienced a higher unemployment rate and slower median income growth than residents of other cities across Canada, according to a new study published by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“Despite its history as an economic engine, Toronto now lags behind Canada’s other large metropolitan areas on key economic metrics. Unemployment rates have been higher, and median-income growth has been slower in Toronto for a long time now,” said Ben Eisen, senior fellow at the Fraser Institute and co-author of the study.

Stagnant Living Standards in the City of Toronto examines the city’s economic performance since 2000, specifically looking at the unemployment rate, median employment income, and before-tax household incomes in Toronto compared to other metropolitan areas across Canada.

The study finds Toronto’s unemployment rate in 2024 was 8.0 per cent—2.1 percentage points higher than the average for all major Canadian cities (5.9 per cent) and 1.7 percentage points higher than the average for large metropolitan areas in Ontario (6.3 per cent).

Median income growth in Toronto has also declined during this period. From 2000 to 2023, inflation-adjusted median employment income in Toronto declined by 0.2 per cent. The average for other Canadian cities during this period, was a positive 15.1 per cent.

“Far from being an economic powerhouse, Toronto is suffering from rising unemployment and stagnant living standards,” said Eisen.

“Toronto represents about 20 per cent of the entire national economy, and its stagnation is an important contributor to Canada’s dismal recent economic growth story. Given the outsized role Toronto plays in Canada’s overall economy, the city’s underperformance is a concern for all Canadians.”

Fraser Institute——Bio and Archives

The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of 86 think-tanks. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute’s independence, it does not accept grants from governments or contracts for research. Visit fraserinstitute.org.

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