Ontario Suffering Poor Labour Market

(WINDSOR, ON) – Ontario’s job-creation and labour market performance ranks poorly when compared to other Canadian provinces and US states. It also trails far behind other manufacturing jurisdictions including Michigan.

These are the findings of a new study released by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“By almost every measure, Ontario’s labour market is at the back of the pack in North America,” said Charles Lammam, the co-author of Measuring Labour Markets in Canada and the United States, 2017.

The study measures the labour market performance for all 10 Canadian provinces and 50 US states from 2014 to 2016, using several indicators including job-creation, unemployment, and worker productivity; the average value of goods and services each worker produced with his or her labour.

Each jurisdiction was assigned a score out of 100 based on their performance on each indicator.

Overall, Ontario ranks 44th out of the 60 jurisdictions. Its score is 47.7 out of 100. By comparison, neighbouring Michigan, a jurisdiction with a large manufacturing sector, ranked 25th overall with a score of 54.3.

Specifically, Ontario performed poorly on total employment growth with just 0.9 per cent average annual increase over the three-year period, ranking 33rd. Michigan enjoyed average annual growth in employment of 2.2 per cent, more than double the rate of Ontario.

In addition, Ontario had a relatively high average unemployment rate at 6.0 per cent, ranking 43rd of the 60 jurisdictions over the same time period. Over the three-year period, an average of one-in-five, or 20.9 per cent, unemployed Ontarians were unemployed for 27 weeks or more; the highest rate among all Canadian provinces.

And, Ontario ranked 52nd out of 60 in worker productivity, with an output-per-worker at just $108,271. Michigan had an average worker output of $129,322. Results were in Canadian funds.

Saskatchewan was the highest ranked Canadian province at 15th, followed by British Columbia in 17th place. Delaware ranked first overall.

“Ontario is traditionally one of the economic engines of Canada, but in recent years it has suffered from weak job creation, high unemployment, and low worker productivity,” Lammam said. He added that, based on Michigan’s performance, Ontario’s government, “… can’t solely blame a faltering manufacturing sector alone for Ontario’s weak labour market performance.”

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About the Author

Robert Tuomi
Robert Tuomi
After initially succeeding as a broadcast journalist and achieving senior level assignments, Robert branched out into marketing communications. As a senior executive, primarily in the high-tech industry, Robert created award-winning and comprehensive, multi-faceted initiatives to enhance sales and expand market awareness for some of the largest companies in their fields.Email Robert Tuomi
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