Toronto — long considered Canada’s economic engine — is now lagging behind other major cities in job growth and income gains, according to a new report from the Fraser Institute.

The study, Stagnant Living Standards in the City of Toronto, found that Toronto’s unemployment rate reached 8% in 2024, well above the national average of 5.9% and higher than Ontario’s large metropolitan average of 6.3%. That places Toronto with the third-highest unemployment rate in Canada, behind Windsor and Red Deer.

Even more concerning? Median income growth. While other Canadian cities saw average median employment income rise 15.1% between 2000 and 2023, Toronto’s median income actually declined slightly by 0.2% over the same period.

Researchers note that Toronto’s unemployment rate historically tracked closely with other major cities, but began pulling ahead — particularly after the COVID-19 pandemic.

Given that Toronto represents roughly 20% of Canada’s total economy, its slower growth and higher unemployment raise broader concerns about the country’s overall economic trajectory.

For a city that prides itself on opportunity and growth, the numbers suggest a tougher road ahead.