The latest economic review from the Financial Economic Office reveals a concerning trend for manufacturing jobs in Ontario. The report highlights a significant drop in manufacturing employment, reaching its lowest point since 1976.
In the past two years, the manufacturing sector in Ontario has faced a series of challenges, including pandemic-related shutdowns, supply chain disruptions, shipping issues, auto plant retooling, slowing demand, and U.S. tariffs on Ontario exports. This has resulted in a decline in manufacturing output for seven out of the last eight quarters.
Manufacturing plays a crucial role in Ontario’s economy, representing 10% of the overall economic activity in the province. The recent losses have been particularly pronounced in the auto sector, machinery, and steel production.
During a legislative session, Ontario Opposition Leader Marit Stiles highlighted the severity of the situation, noting the historic nature of the decline. Meanwhile, the Ford government sought to downplay the report’s findings by pointing to recent job gains in the sector.
The report indicates a decline in employment by nearly 2,000 jobs in the third quarter, following a loss of 38,000 jobs in the previous quarter. This marks the first consecutive quarterly decline since the economic downturn of 2009, excluding the pandemic.
Despite efforts to mitigate the impact, the unemployment rate in the province remained stagnant at 7.8%, maintaining a trend of nine consecutive quarterly increases.