Toronto freezes most non-frontline hiring as $1.1 billion gap looms

CP24 reported that Toronto has put a hiring freeze in place as it faces a projected $1.1 billion shortfall in its 2027 budget. The freeze comes days after Premier Doug Ford ruled out a second “New Deal” with the city.

The first deal, struck in 2023, provided $1.2 billion in operating support over three years, but that came to an end in 2026. Mayor Olivia Chow said the first deal was always interim and the city must find a “structural financial solution”.

Ms Chow said non-frontline hiring is frozen so the city can do a line-by-line review to find savings, as it did last year. City spokesperson Russell Baker said the pause covers most positions, including recruitments under way where no offer has been made.

The gap is not the city’s first: Ms Chow inherited a $1.8 billion shortfall when first elected in 2023. She tried to close it with two significant property tax increases and the funding agreement with the province.

Ms Chow has promised to keep property tax rises near inflation; the 2026 combined increase in residential property tax and the City Building Fund levy was 2.2%, or $91.53 a year on an average Toronto home. She said the Toronto Transit Commission (TTC), which runs the city’s buses, streetcars and subways, faces a severe deficit because of rising fuel costs, which adds to the city’s financial pressure. Talks with the province will continue piece by piece rather than as one package, she said.

Sources: CP24 · City of Toronto