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As the rest of Canada gained economic momentum in September, with employment returning to pre-pandemic levels, the Windsor area lagged behind.
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The most recent local unemployment figure of 10.4 percent is the highest in Canada and this area remains the only one still struggling with a double digit figure.
Toronto and Calgary had the next highest rates at 8.9 percent.
The national unemployment rate fell 0.2 percent to 6.9 while the provincial rate fell three basis points to 7.3 percent.
“These are definitely not the numbers we want to see,” said Rakesh Naidu, executive director of the Windsor-Essex Regional Chamber of Commerce.
“We have been stubbornly in double digits for some time now. That is definitely disappointing.
“There are things (microchip shortage, border closures) that affect our region more than other areas. That is reflected in these numbers. “
There were 165,400 people employed locally last month, a loss of 500 jobs since August. The employment level before the Windsor pandemic in February 2020 was 167,300.
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The local numbers are equally distasteful when looking at labor force participation and employment rates.
The Windsor Metropolitan Census Area employment rate dropped 0.2 percent to 54.1 percent, while the participation rate dropped four basis points to 60.4 percent.
That’s in stark contrast to Ontario’s employment rate of 60.6 (plus 0.5) and the national rate (60.9 percent, plus 0.4). Participation rates, both at the provincial and national levels, improved by 0.4% to 65.4% and 65.5%, respectively.
The Windsor census metropolitan area includes Lakeshore, Tecumseh, Amherstburg, and LaSalle.
Workforce WindsorEssex CEO Justin Falconer said the figures illustrate how vital the manufacturing sector remains, with automotive at its beating heart, in this area.
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The industry lost 1,500 jobs in September due to the Windsor Assembly Plant and its many feeder plants being idle due to a shortage of microchips at the time the Statistics Canada survey was completed (September 12-18 ).
“It’s hard to get back to normal when your largest employer in the region is still hampered by a shortage of microchips,” Falconer said.
“Even if we make improvements to these numbers in the coming months, without auto production going back to what it was, he has one hand tied behind his back.”
Falconer said that between 20 and 25 percent of jobs in the area are connected in some way to the auto sector. He called the region’s diversification strategy “a long game that rarely brings quick wins.”
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“We’re trying to change those percentages by adding different jobs, not eliminating well-paying manufacturing jobs,” Falconer said.
Other sectors that showed significant gains or losses were education services (more than 1,600 jobs), food and accommodation (more than 500), and construction (less than 500).
Naidu added that the border that remains closed continues to be a drag on the local economy, especially the manufacturing sector.
“The closing of the border is now causing irreversible damage to our economy,” Naidu said. “We are losing jobs that are not coming back.”
Naidu shared a story of a local manufacturer that initially established a 6,000-square-foot facility in Detroit to allow final testing of machinery and signing contracts for US customers.
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The local company has since moved into an 80,000-square-foot building, removed machinery from a Windsor plant, and hired employees in Detroit.
“Initially, it was a way to avoid the closure of the border, but it has worked so well there that he told me that he does not think it will bring the new business back to Windsor,” Naidu said.
Despite Windsor’s high unemployment rate, there are thousands of begging jobs locally.
In September, there were 6,054 active job postings on the Workforce website, a 5.65 percent increase from August, from 1,949 employers.
“People are not taking advantage of the opportunities that exist,” Naidu said. “We will see what happens when some of the government subsidy programs run out at the end of October. That can encourage people to join the workforce and reduce these numbers. “
Reference-windsorstar.com