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The Windsor region has the highest unemployment rate in Canada after June’s numbers jumped 1.2 points to 11.8 per cent.
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There were 21,800 people unemployed in the Windsor census metropolitan area last month, an increase of 2,200 workers off the job and the highest number since June 2020.
The Statistics Canada Labour Force survey numbers for Windsor include Tecumseh, LaSalle, Lakeshore and Amherstburg.
The unemployment rate dropped to 7.8 per cent nationally and 8.4 per cent provincially, declines of .4 and .9 per cent, respectively, but the 231,000 new jobs are all in the category of part-time employment.
Southern Ontario, however, trended in the opposite direction.
The London area saw its unemployment rate increase .3 per cent to 10 per cent with 1,100 people added to the list of unemployed.
The St. Catharines-Niagara region’s unemployment rate jumped .7 per cent to 11.5 per cent, the second-highest figure in the nation.
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“The big weight in this number is the Windsor Assembly Plant,” said Workforce WindsorEssex CEO Justin Falconer in explaining Windsor’s numbers.
“The Windsor Assembly Plant has been severely impacted by the microchip shortage and has been essentially closed from the end of March to July. They’re the biggest employer in the region and, if they’re not working, the region is not working.”
Ford Motor Company’s Essex Engine and the Annex Engine plants have also had some down time, but not to the same extent as the Stellantis facility.
Falconer said the other group that is impacting the unemployment rate locally are education workers. The Statistics Canada Labour Force Survey was done the week of June 13-19 just as the education sector begins sending out layoff notices and workers begin filing for summer unemployment benefits.
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However, Falconer believes there’s reason for optimism.
“Our new job postings are up dramatically in the last month, an increase over 24 per cent,” Falconer said. “We’ve set records in postings for five or six sectors.
“We have 5,672 active postings from 1,794 employers. Employers are recruiting and looking to scale up. It generally takes four weeks, so hopefully next month the unemployment number begins to come down.”
Falconer said wholesale and retail trade has bounced back strongly and health care and social services have exhibited strong growth.
“There are 23,700 employed in wholesale and retail trade,” Falconer said. “That’s the highest number its been in two years. Those are optimistic numbers.
“Health care and social services have increased in the last four months from about 18,000 to 27,000 people.”
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Of the 37 census metropolitan areas in the nation, Ontario had the only four (Windsor, London, Belleville, St. Catharines-Niagara) to have double-digit unemployment rates.
Invest WindsorEssex CEO Stephen Mackenzie feels there’s a connection between Ontario’s cautious approach to re-opening the economy due to COVID-19 concerns and the higher unemployment rates in the province.
“I think that (slower re-opening) is part of it,” Mackenzie said. “The good news is we’re moving to Stage 3 five days early.
“It’s frustrating to see a high number, but I think it’s only temporary with our main industry having supply chain issues and retail and tourism not fully open yet. I’ll be anxious to see July and August’s numbers.”
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Mackenzie adds the local economic fundamentals remain strong.
Manufacturers are busy, he said, there’s record new housing starts and continued population growth. More people returned to the labour force in June and the employment participation rate (60.7 per cent) is at its highest level since Feb. 2020.
“The labour force grew by 600 people, which is excellent,” Mackenzie said. “More people are looking for work because they’re more confident of finding a job.”
Mackenzie said the top business issue he’ll be most closely watching in the coming weeks is the border re-opening. The next update from the federal government on the issue will come by July 21.
“The border is really getting desperate,” Mackenzie said.
“It has to be more open than it is. It’s a crisis when you’re a border town.
“Uncertainty is the enemy of everything in business.”
Windsor boasts highest unemployment rate in Canada - Windsor Star
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