Ontario’s Manufacturing Sector Suffers Sharpest Decline Since 2009 Amid U.S. Tariffs
Ontario’s Manufacturing Sector Suffers Sharpest Decline Since 2009 Amid U.S. Tariffs

According to the CBC, Ontario’s manufacturing sector is facing its toughest time in years. In just a few months of 2025, Ontario lost 38,000 jobs—with 29,400 of those in manufacturing. This is the sharpest drop since 2009, except for the pandemic.

If you lost your job because of these changes, you are not alone, and there are steps you can take to get help and protect your rights.

Ontario Job Losses: The Hard Numbers

Recent news shows that this past spring and summer have been very tough, especially for places that depend on factories and manufacturing. In Windsor, the unemployment rate jumped to 11.2%, the highest in Ontario. Other cities, like Brantford, Waterloo, Guelph, and London, also saw lots of job cuts as factories closed or cut back on work.

Nearly three-quarters of all layoffs were in manufacturing; things like steel, auto parts, and machinery. But it’s not just factories; jobs in business services and transportation have also been impacted.

When so many people lose jobs, families tend to spend less, more people ask for community help, and it makes the future more uncertain for everyone. Even smaller towns that rely on one or two big employers now feel these job losses.

Why Are These Layoffs Happening?

These job losses are mainly because of new tariffs from the United States. Tariffs are extra taxes on goods that cross the border, like steel, aluminum, and car parts made in Ontario. These extra taxes make it harder for Ontario companies to sell to the U.S., so many companies have to cut down on jobs or stop production.

Experts say if these trade problems don’t get solved, or if the government doesn’t help workers and factories soon, the situation could get worse.

What Can Workers Do?

If you were laid off, or if your hours have been cut, you still have rights and you can get help:

  • Apply for Employment Insurance (EI) right away to get support while looking for work.

  • Check with your employer about severance pay or any last payments they owe you.

  • See if you qualify for retraining or special help programs—there may be funding just for people who lost factory jobs.

  • Talk to an employment lawyer. They can explain your rights, make sure your company followed the rules, and help you get the help or money you may deserve.

Some employers are getting government loans to try and keep factories open, but you should always find out what supports are available to you, too.

You Don't Have to Face This Alone

Ontario’s manufacturing workers have been through hard times before and made it through with the right help. If you’re worried or just need to know what your options are, talk to an employment lawyer. Even a short conversation can help you feel more secure and show you the steps to move forward. Support is available, and knowing your rights is the best way to protect yourself and your future.

Have you been laid off by your job in the manufacturing sector? Contact our employment lawyers today. Our legal team offers a free consultation and works on a contingency basis—there are no fees unless you win your case.

We’re here to support you during this difficult time

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