Amid concerns of slower economic growth and a prolonged period of high inflation, Ontario is set to raise its minimum wage by 2.4 per cent later this week.On Monday, the Ford government announced that the province’s minimum wage would increase to $17.60 from $17.20 an hour starting on October 1, 2025.“At a time when many families are feeling the pressure of global economic uncertainty, our government will protect Ontario workers with a minimum wage increase that supports our world-class workforce,” David Piccini, the Minister of Labour, Immigration, Training and Skills Development wrote in a statement. “We will continue to take action to build a strong, resilient workforce ready to face whatever comes our way,” he added.The government says the changes will mean that a worker making the general minimum wage and working 40 hours per week will get an annual pay increase of more than $800.The increase is calculated based on the Ontario Consumer Price Index (CPI), which is used to measure inflation and represents changes in prices for goods purchased by consumers in the province.According to data from Statistics Canada, Ontario’s CPI increased in August 2025 to 1.7 per cent from the previous year, which means the prices of goods have increased slightly since then.Changes to the province’s minimum wage come amid the backdrop of a months-long trade war with the United States which has hampered economic growth across Ontario and many parts of Canada. Analysts with Ontario’s Financial Accountability Office, say U.S. tariffs have led to tens of thousands of job losses in both countries, particularly in manufacturing and labour-intensive services industries. To address these issues, the province has promised to invest $2.5 Billion into a Skills Development Fund which it says will “support key industrial sectors and help train even more workers.”Ontario has the highest minimum wage in the country, second to Nunavut which increased its minimum wage to $19.25 at the beginning of September. On Oct. 1, Saskatchewan is also set to increase its minimum wage to $15.35 an hour from $15, a move that will officially make Alberta’s rate the lowest in the country at a flat rate of $15 per hour.With files from The Canadian Press.