Fall economic outlook includes tax relief, trade funds, upskilling investments for employers
Ontario’s government has unveiled its 2025 Fall Economic Statement, “A Plan to Protect Ontario,” outlining a series of measures designed to help employers weather economic uncertainty, boost competitiveness, and support workers amid ongoing global trade disruptions and rising costs.
“With tariffs taking direct aim at Ontario workers and communities, it has never been more important for the government to deliver on its plan to protect Ontario,” said Finance Minister Peter Bethlenfalvy.
“We continue to make historic investments in highways, transit, health care and all the other services our communities rely on, so we can build for our growing province.”
Ontario’s real GDP is projected to rise 0.8% in 2025 and 0.9% in 2026, says the government. The province’s deficit for 2025–26 is forecast at $13.5 billion, an improvement over previous estimates, with a path to balance by 2027–28.
The government says it will soon launch consultations to inform the next phase of its economic plan, seeking input from employers and the public on job creation, tax policy, and infrastructure priorities for the 2026 Ontario Budget.
Relief for employers facing economic headwinds
A central focus of the plan is protecting Ontario businesses and workers from the impact of U.S. tariffs. The government is expanding the $5-billion Protecting Ontario Account, with the initial $1 billion already deployed to support businesses in steel, aluminum, copper, and auto sectors.
The next phases, backed by $4 billion, will further strengthen economic resilience, drive innovation, and accelerate the growth of high-potential firms, says the government.
Ontario is also investing $20 million in the Protect Ontario Workers Employment Response (POWER) Centres, which provide rapid training and upskilling for workers affected by, or at risk of, layoffs.
For the first time, these centres can be launched proactively—within 24 hours of a layoff risk—helping nearly 15,000 workers this year, says the government.
The province’s Trade-Impacted Communities Program (TICP) will provide up to $40 million in flexible funding to help local industries and communities adapt to trade disruptions, supporting both resilience and large-scale transformation projects.
Tax relief and incentives to spur investment
To encourage investment and job creation, Ontario is enhancing the Ontario Made Manufacturing Investment Tax Credit (OMMITC), temporarily increasing the rate from 10% to 15% and expanding eligibility to more corporations.
The government is also amending criteria for machinery and equipment investments, giving businesses greater flexibility to innovate and grow.
A new Tax Action Plan is also in development to update personal and corporate income taxes, aiming to attract business investment, improve Ontario’s G7 competitiveness, and provide cost relief for individuals and families. Details will be released in the 2026 Ontario Budget.
Improving labour mobility
In addition, in October 2025, the government introduced the Building a More Competitive Economy Act, 2025, and related initiatives. If passed, the Act and these measures would “put in place conditions for long-term stability, resiliency and prosperity, while supporting businesses, workers, and communities.”
The Act and related measures include 11 initiatives to improve labour mobility and streamline government processes for permits and approvals, for example:
• Reviewing all Ontario government economic development-focused permits by 2028, with the goal of eliminating or transforming 35 per cent or more to position the province as the leading G7 jurisdiction for investment, while maintaining “robust” health, safety and environmental protections.
• Creating a centralized digital permitting system that streamlines how businesses apply for and monitor permits, reducing approval times, enhancing transparency.
• Supporting worker mobility across Canada by expanding “As of Right” provisions for Canadian workers licensed and credentialed in other provinces and territories, particularly health care workers. Also, moving forward with automatic recognition of credentials for doctors and nurses from the rest of Canada.
Support for SMEs, healthcare in Ontario
The Ontario Together Trade Fund (OTTF) is receiving an additional $100 million, bringing total funding to $150 million over three years. This will help small and medium-sized enterprises diversify into new markets, strengthen trade resiliency, and pivot production in response to U.S. tariffs, says Queen’s Park.
The government is also leveraging its $30-billion annual procurement spend to prioritize Ontario-made goods and services, supporting local businesses and strengthening supply chains.
Employers will also benefit from Ontario’s ambitious $201-billion, 10-year capital plan, including over $33 billion in 2025–26 alone. These investments will support job creation and help keep workers employed during economic uncertainty, says the government.
