An addition of 25,500 jobs in July boosts Ontario’s economy

According to Statistics Canada’s Labour Force Survey of July 2017, the unemployment rate declined by 0.2 percentage points to 6.3 percent, the lowest rate since October 2008.

An upsurge of employment in Ontario by 137,900 jobs year over year, according to the release, was due to gains in the information, culture and recreation, wholesale and retail trade and business, building and other support services sectors.

As a result, there was an increase in employment in many economic regions across the province, including Muskoka-Kawarthas, Hamilton-Niagara Peninsula and Kitchener-Waterloo-Barrie which showed 11.2 percent, 5.3 percent and 4.9 percent increase, respectively.

According to 2017 First Quarter Ontario Economic Accounts, Ontario's real GDP grew one per cent in the first quarter of 2017 surpassing Canada, the United States and all other G7 countries -- United States, United Kingdom, France, Canada, Italy, Japan and Germany represent the world's largest industrialized economies -- boosting real GDP posted in the fourth quarter of 2016 by 0.5 percent.

“Our government has made economic growth and job creation our top priority, and our efforts are clearly paying off. We have worked hard to ensure an economic environment that is positive and allows the private sector to create good jobs and drive economic growth,” said Brad Duguid, Minister of Economic Development and Growth.

Increased business investment of 5.5 percent, upsurge in residential construction by nearly eight percent and consumer spending were the main forces behind the overall GDP increase.

Ontario’s efforts in simplifying businesses -- according to 2017 Burden Reduction Report -- to comply with modern regulations resulted in $29.3 million in savings, bringing the total amount of burden reduction savings to $152 million since 2011.

In an effort to decline net debt-to-GDP, the 2017 Ontario budget reports said,

“Like many jurisdictions around the world, the government responded to the global economic recession…to stimulate economic growth, supporting jobs for Ontarians…these stimulus investments helped lift Ontario out of the economic recession, they also resulted in a rise to the net debt-to-GDP ratio starting in 2008–09…The net debt-to-GDP ratio is projected to be 37.8 per cent in 2016–17 and is expected to continue to decline. The government is setting an interim net debt-to-GDP ratio target of 35 per cent by 2023–24 and continues to maintain a target of reducing the net debt-to-GDP ratio to its pre-recession level of 27 per cent, with current projections showing that this will be achieved by 2029–30.”

Ontario’s actions to create more opportunity and security for workers with a plan for ‘Fair Workplaces and Better Jobs’ envisaged $15 minimum wage and equal pay for part-time and full-time workers.

The government will continue to work, said the reports, with businesses to ensure Ontario's competitive economic environment continues to support the creation of new, good jobs for people across the province.

Employment in 2017 is forecast, the official reports said, to increase by 1.3 per cent, which would result in 94,000 new jobs.

In 2016, Ontario employment increased by 1.1 per cent, equaling 76,400 net new jobs.

There was an increase of 2.5 per cent new motor vehicle sales in Ontario in May, the fourth increase in five months.

New motor vehicle sales in Ontario increased 5.3 per cent over the first five months of 2017, compared to the same period in 2016.

Wholesale trade in Ontario rose 9.3 per cent over the first five months of 2017, compared to the same period in 2016.

‘The Changing Workplaces Review — Final Report’ recommended creation of better workplaces in Ontario with decent working conditions and widespread compliance with the law with a better knowledge and understanding of basic rights and obligations.

(Reporting by Asha Bajaj)

Image: Brad Duguid/Facebook