Unemployment in Ontario

Unemployment in Ontario is the measure indicating the number of Ontarians "without work, are available for work, and are actively seeking work".[1] In December 2013 Ontario's unemployment rate was 7.9% or 588,500 people. Participation (employment-to-population) rate was 66%.[2] Considering the declining participation rate additional several thousands of people can be considered unemployed, but are not included in the official statistics.[3]

Measurement

The rate of unemployment is measured by Statistics Canada using a Labour Force Survey. Unemployment rate does not include people who are not actively looking for work such as discouraged workers. It may include people who falsely claim to be unemployed and people working in the blackmarket. Unemployment is not a good indication of the quality of work.[4]

Unemployment by demographics

The unemployment rate for youth aged 15-25 has been almost double that of the general population in 2013, and in the past years. [5]Immigrants also face similar challenges with unemployment.[6] Inuit and First Nations people also have higher rates of unemployment.[7]

Unemployment by region

In recent years following the Great Recession, regions or cities such as Windsor, Oshawa, London and Peterborough, heavily dependent on auto manufacturing have been severely impacted by unemployment. In December 2013 Toronto proper unemployment rate deteriorated to 10.1%.[8]

Solutions

Issues related to creating employment involve many socio-political-economic-environmental factors and complexities. In Ontario, center and left leaning governments have supported strong infrastructure building and social safety net policies while right leaning governments have pursed lower taxes and government spending policies. Regardless of government policies external factors such as Global recession, change in technologies, lower labour costs and lack of strong regulations in developing countries impact unemployment in Ontario.

Social safety net

Canada has a federal Employment Insurance system which covers workers for several months immediately after they lose work. Ontario also provides various social assistance services for those in need.

Infrastructure

Stable political and social systems, corruption free and efficient government operations, quality education, health, transportation, energy, information and communication, water and sanitation and financial systems help create employment and improve private sector productivity. According to The Economic Impact of Ontario’s Infrastructure Investment Program report published by Conference Board of Canada, "Economic activity linked to these investments supports employment in the province – on average 167,000 jobs per year are due to infrastructure spending. What is less obvious, but just as crucial, is that infrastructure boosts private-sector productivity, adding about $1,000 per year to the income of every Ontarian".[9]

Business climate

Lower business taxes, tax incentives to encourage employers to hire, reduced red tape and government spending, business friendly labour laws and policies facilitating trade help create conducive business climate, thus creating jobs. These type of policies implemented by Mike Harris-led Progressive Conservative government helped create more than 1 million jobs from 1995 to 2003.[10]

Skills training and trades

Skills training and promotion of trades through apprenticeship programs has been identified as a main component in closing Ontario's skills gap, thus better matching available employment opportunities with the labour force.[11]

Entrepreneurs incubation

Education and University systems that foster and incubate innovation, entrepreneurship and self-employment have been identified as a growth area for Ontario to help reduce unemployment.[12]

See also

References

  1. ↑ "Labour Force definition". www.statcan.gc.ca. Statistics Canada. 2008. Retrieved 2014-01-25.
  2. ↑ "Table 3 – Labour force characteristics by province – Seasonally adjusted". www.statcan.gc.ca. Statistics Canada. 2014. Retrieved 2014-01-25.
  3. ↑ "The problem with Hudak's million jobs promise". www.rabble.ca. Retrieved 2014-01-25.
  4. ↑ "econ101-powers - Calculating the Unemployment Rate". Retrieved 2014-01-25.
  5. ↑ "Ontario youth joblessness a chronic problem: report". www.policyalternatives.ca. Canadian Centre for Policy Alternatives. 2013. Retrieved 2014-01-25.
  6. ↑ "Ontario immigration strategy calls for more power to pick newcomers". www.thestar.com. Toronto Star. Oct 2012. Retrieved 2014-01-25.
  7. ↑ "Aboriginal Communities in Profile: Ontario" (PDF). www.otf.ca. The Ontario Trillium Foundation. 2006. Retrieved 2014-01-25.
  8. ↑ "Toronto's unemployment rate 'deteriorates dramatically' to 10.1%, as Rob Ford says city 'is booming". www.nationalpost.com. National Post. January 14, 2014. Retrieved 2014-01-25.
  9. ↑ Ontario Infrastructure Spending Makes All Ontarians Wealthier
  10. ↑ Conservatives lay out jobs creation plan for Ontario
  11. ↑ Ontario’s skills gap is costing the province billions
  12. ↑ The Opportunity for Entrepreneurship in Ontario: An Analysis of Self-Employment across City-Regions
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