Industries Facing the Most Uncertainty in Ontario (2025)

Ontario’s workforce is no stranger to change, but as we approach 2025, several industries are facing intense uncertainty. Global shifts, economic pressures, and rapid innovation have created unique challenges for businesses, employees, and job seekers across the province. From the manufacturing floor to the tech labs, here’s a closer look at the industries under the most strain, the problems they’re up against, and what can be done to move forward.

Manufacturing & Automotive

Challenges:

  • Global supply chain disruptions are causing delays and escalating costs.
  • Increased automation means machines are taking on tasks that humans used to do.
  • The shift to electric vehicles (EVs) requires new technologies and skills.

Impact:

Manufacturers are dealing with layoffs due to slowdowns, and many workers are finding their skills don’t match emerging demands. Green tech and robotics are the future, but without significant upskilling, today’s workforce risks being left behind.

What’s needed? Training programs focused on green energy, robotics, and advanced manufacturing can help workers adapt and keep this sector competitive.

Retail & Hospitality

Challenges:

  • Consumers are spending cautiously, creating revenue uncertainty.
  • Operating costs, from rent to inventory, are rising.
  • Labour shortages make it hard to staff stores, restaurants, and hotels at full capacity.

Impact:

Many retail and hospitality jobs, especially part-time ones, are becoming unstable. High turnover means businesses often rely on temporary staff, which affects customer experience and long-term performance.

What’s needed? Employers must work on offering more stable roles and better benefits to attract and keep talent, even in tough economic times.

Construction & Skilled Trades

Challenges:

  • An aging workforce means skilled trades professionals are retiring faster than new ones are entering.
  • Project costs keep climbing, with materials and inflation driving up budgets.
  • Housing demand is through the roof, but project delays and red tape slow progress.

Impact:

Talent shortages are making it harder to get projects done on time, and persuading young people to enter the trades remains an uphill battle.

What’s needed? More apprenticeships, outreach to youth, and investment in housing solutions that prioritize both speed and quality.

Health & Social Assistance

Challenges:

  • Workers are burning out, especially in long-term care and hospitals.
  • Staffing shortages can’t keep up with the growing demand for care.
  • The need for better training pipelines is more urgent than ever.

Impact:

Overstretched staff and high turnover mean patients often don’t get the level of care they need. Without a stronger effort to expand and support the healthcare workforce, this sector could hit a breaking point.

What’s needed? Continuous training, mental health support for workers, and incentives to attract talent to the care industry.

Tech & Innovation

Challenges:

  • Funding for new technologies and startups is becoming harder to secure.
  • Artificial intelligence (AI) continues to disrupt traditional roles.
  • Workers need to constantly learn new skills to keep up with rapid evolution.

Impact:

Tech jobs often come with a “survive or thrive” dynamic. Employees who can’t quickly adapt are left behind, leading to uneven access to opportunities.

What’s needed? Greater emphasis on lifelong learning, affordable training opportunities, and equitable access to resources so all Ontarians can benefit from this growing sector.

Key Challenges for Businesses and Employers

Across industries, there’s a common thread of challenges employers and businesses must tackle to stay resilient:

  1. Recruitment and Retention: With roles evolving faster than before, it’s difficult to find and keep qualified candidates.
  2. Training Gaps: The workforce isn’t reskilling as quickly as industries are transforming.
  3. Economic Pressures: Inflation and shifting consumer behavior are tightening budgets.
  4. Mental Health & Burnout: Employers are seeing how these issues affect productivity and increase turnover.

Addressing these challenges means businesses need to rethink how they support their teams and plan for the future.

Actionable Steps for Employers, Employees, and Job Seekers

Making Ontario’s workforce stronger is a shared responsibility. Here’s how each group can play their part:

✅ Employers Can:

  • Partner with workforce organizations to co-design training that matches industry needs.
  • Offer mentorships and hands-on learning opportunities to equip workers with real-world skills.
  • Invest in ongoing employee development, both in upskilling and mental health support.

✅ Employees Can:

  • Stay open to lifelong learning and build confidence in adapting to new tools and roles.
  • Use training resources like those offered by Job Skills to strengthen their skills.
  • Be vocal about workplace challenges so employers can accommodate what matters most.

✅ Job Seekers Can:

  • Take advantage of career programs that help target industries in need, like green energy or tech.
  • Stay informed about in-demand opportunities and invest in versatile skills.
  • Focus on career resilience by diversifying their experiences and credentials.

Collaboration between these groups will help smooth Ontario’s road ahead.

How Job Skills is Stabilizing Ontario’s Labour Market

Job Skills is stepping up to address these challenges with tailored workforce solutions that create real impact.

 Insight-Driven Action

By gathering real-time labour market data, Job Skills ensures their programs match the evolving needs of employers and job seekers.

 Bridging the Gap

Working directly with employers, Job Skills co-creates customized training solutions and offers incentives to overcome skill shortages.

 Measurable Impact

Through data tracking and outcome measurement, they prove the value of workforce development to funders, businesses, and the community alike.

Ontario’s industries may be facing uncertainty, but with organizations like Job Skills leading the way, the future of work in the province looks brighter. By investing in people, skills, and solutions, we can transform the challenges of 2025 into opportunities for a stronger, more resilient workforce.

ABOUT JOB SKILLS

For 37 plus years, Job Skills has been delivering solutions to job seekers and moving people into sustainable, meaningful employment. Throughout their long history, Job Skills has recognized that not every job seeker is the same. There is no one size fits all employment program. That’s why the Job Skills vision is building an inclusive society where all people are ensured equitable opportunities to fulfill their career aspirations and participate fully in the community.

Job Skills’ employment specialists are there to answer any of your employment questions. Job Skills‘ staff offer solutions to all job seekers, including youth, newcomers, mature workers, persons with disabilities, and entrepreneurs. Job Skills’ knowledgeable team can help you make educated decisions, set goals, and create a strategy to help you become happier in your career. Job Skills works with local employers creating employment opportunities for Job Skills’ clients.

Thanks to government funding, Job Skills’ programs and services are free to all users. Job Skills have locations across Keswick, Stouffville, Markham, Brampton, and Mississauga. Job Skills also offers virtual services for community members unable to attend one of our offices for in-person activities.

Find your employment solution today. Visit www.jobskills.org

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