Ontario’s job losses could impact rent payments

Ontario’s job market is under pressure, and property managers may want to keep an eye on the ripple effects.

The Financial Accountability Office of Ontario (FAO) reports the unemployment rate climbed to 7.8% in Q2 2025, the highest since 2012 excluding the pandemic. This is the ninth straight quarter of increases, with 38,000 jobs lost between April and June alone – most of them in the manufacturing industry.

Windsor, the heart of Canadian auto manufacturing, has been hit the hardest, registering the country's highest unemployment rate at 11.2%.

Employment Insurance (EI) claims rose 4.5% in Ontario during Q2, with most new claimants coming from manufacturing and utilities.

The FAO points to US tariffs on Canadian goods as the main cause behind this significant decline in employment, stalling production and triggering layoffs for workers in trade-dependent industries.

While EI provides some temporary relief, the reality is losing a job can quickly translate into missed or late rent payments.

If you manage properties, now is the time:

• Open the conversation with tenants about flexible payment plans (if you offer them)

• Direct tenants toward EI benefits or other support programs if they’re affected

• Prepare landlords for the possibility of reduced or delayed rental income, and reassure them of increased vigilance, including flexible financial management to avoid vacancies and lost rent

There’s a small bright spot: part-time employment grew by 18,700 positions. It’s not full-time stability, but it may keep more tenants current on rent while the economy adjusts.

More payment headlines
What Ontario’s rising delinquencies mean for property managers – PayProp blog

Ontario eyes giving credit bureaus access to LTB orders for renters with history of arrears – CBC

Family of 4 will pay almost $17k for food this year as poverty spreads across Peel — The Pointer