Windsor Essex Chamber of Commerce president Matt Marchand speaks to the Rotary Club, February 29, 2016. (Photo by Maureen Revait) Windsor Essex Chamber of Commerce president Matt Marchand speaks to the Rotary Club, February 29, 2016. (Photo by Maureen Revait)
Windsor

Ontario Jobless Rate A 'Red Herring', Says Report

The historically-low unemployment rate in Ontario may not be what it's cracked up to be, according to a new report.

The Ontario Chamber of Commerce and the Windsor-Essex Regional Chamber of Commerce (WERCC) have released the second annual Ontario Economic Report, which identifies trends in Ontario's economy.

One key point raised by the report is a discrepancy between Ontario's announced unemployment rate and the percentage of Ontarians who are not in the labour force. The province's unemployment rate for December 2017 is 5.5%. However, the report also says 35% of Ontarians are not participating in the labour force. The OCC dismisses the jobless rate as a "red herring" since some unemployed people either stop searching for work or remove themselves from the workforce.

Matt Marchand, president of the WERCC, says Windsor-Essex sees many factors in low labour force participation.

"If you look at the economic indicators, we're seeing a lot of jobs without people and people without jobs," says Marchand. "We have folks that can't get to a particular job because of transit issues. Also, I might add that our incomes have been stagnating or declining in the Windsor-Essex area."

The report also points out a possible connection between the low labour force participation and the number of children under 17 living in low-income households. In Windsor-Essex, one in four children under 17 live under those conditions, which is the highest of any area in the country according to Statistics Canada.

Another concern from Ontario businesses is having access to talent. The report says 77% of companies mention being able to hire qualified people in their area is their most significant impact on competitiveness, which is up from 60% last year. Also, half of those businesses have no confidence in Ontario's economy.

Marchand says, however, that the news is not all bad for the Windsor-Essex economy. He met with Giles Gherson, Ontario's deputy minister of economic development, on Monday at Queen's Park in Toronto. He says there was a lot of positive discussions, particularly about selling Windsor-Essex as a destination for companies.

"There are some overseas automakers interested in some opportunities in southern Ontario, and we're putting forward the Windsor-Essex area," says Marchand.

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