Ontario shed 38,000 jobs in the second quarter of 2025, marking one of the worst quarterly losses in over a decade. The province’s Financial Accountability Office reports that 29,400 of those jobs were in manufacturing, a sector now facing its sharpest decline since 2009 outside of the pandemic. The automotive industry, already under pressure from new U.S. tariffs, has been at the centre of these losses, with Windsor’s unemployment rate climbing to 11.2%, the highest in Ontario.
The report paints a troubling picture: nine consecutive quarters of rising unemployment, weakening exports, and mounting layoffs in key industries. For many workers in auto and manufacturing, these economic shocks are accelerating early retirements, buyouts, and forced exits. And with each exit comes a critical financial decision — what to do with their pension.
Workers leaving the industry are often presented with three paths: stay in the employer plan and take a monthly pension, transfer the commuted value into a locked-in retirement account, or arrange a copycat annuity through an insurance company. In times of economic uncertainty, many are opting to move their pensions away from company control.
A commuted value transfer allows flexibility and independent management of retirement funds, while a copycat annuity replicates the guarantees of the employer plan but with the backing of a major insurer rather than the employer itself. For workers facing layoffs or early retirement offers in Ontario’s manufacturing heartland, these options can provide stability at a time when industry jobs and employer pensions appear increasingly uncertain.
