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City jobless rate hits 8.6% as economy sheds more jobs

Greater Sudbury's economy continued its slide in January, with the city's jobless rate increasing again, even as Ontario as a whole added jobs. Unemployment in the city rose to 8.6 per cent last month, up from 8.
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Greater Sudbury's economy continued its slide in January, with the city's jobless rate increasing again, even as Ontario as a whole added jobs. File photo.

Greater Sudbury's economy continued its slide in January, with the city's jobless rate increasing again, even as Ontario as a whole added jobs.

Unemployment in the city rose to 8.6 per cent last month, up from 8.4 per cent in December, Statistics Canada reported in its monthly labour force report. The city lost about 600 jobs since December, when 79,300 people were working.

In January 2015, the rate stood at 5.9 cent and 84,600 were working.

The jobless rate has increased even as the size of the labour force shrinks. There were 86,100 people working or looking for work last month, compared to 86,600 in December and 89,900 in January of last year.

Low commodity prices are hampering the city's mining-reliant economy. Last month, Mayor Brian Bigger said the struggles are part of the normal cycles the industry goes through.

"I think it's a general reflection of the economy and it's well known in the news and the media and throughout the public that we have a challenging economy right now,” Bigger said.

"In these mining and commodities markets, there are cycles. So we're in a tough part of the cycle right now, but we're optimistic. In the past, we've grown employment, so we're optimistic that this will turnaround in the future.

“Yes, we're concerned and yet we've rebounded in the past and so we'll keep on looking positively and doing our best in anything we can find that we can do to improve the situation."

City council is considering a number of infrastructure projects that would help generate economic growth while the mining industry struggles. For example, city estimates the $80 million Maley Drive extension will create 780 jobs and generate an economic stimulus of $88.8 million.

And a still unscheduled special meeting will consider debt financing to pay for four-laning MR35 between Azilda and Chelmsford, as well as a major resurfacing of Lorne Street. Each project would cost in the neighbourhood of $30 million.

Also on the horizon are a number of big projects pitched to council last November, ranging from a new arena, a multi-purpose arts and events centre, and a local food centre. A report on those ideas is due in April.

"We will continue to look at programs throughout the community that can contribute to employment in our community," Bigger said. "We're always looking for different organizations that have innovations and ideas on how they can increase employment.”

While Sudbury struggled, Ontario posted significant job gains last month.

“For a second month in a row, Ontario was the lone province with employment growth, up 20,000 in January,” StatsCan said in the news release. “However, the unemployment rate was unchanged at 6.7 per cent as more people participated in the labour market. In the 12 months to January, employment in the province increased by 100,000.”

Ontario's real GDP increased 3.5 per cent in the third quarter, driven by gains in household spending and net exports, the province said in a news release.

"We have stuck to our plan for helping to make Ontario more productive and competitive on a global scale,” Finance Minister Charles Sousa said in the release. “Our strategic investments in education and modern infrastructure, together with a competitive tax system, strengthen Ontario and create dynamic opportunities where business can thrive."

As for a turnaround in Sudbury, Bigger said it's largely a matter of waiting for mining to rebound.

"It's not something that a municipal government has full control over,” he said. “It really does depend on the pricing and the markets and the large corporations at this time … although that may take a bit of time." 

By the numbers:

Population of Canada: 35,985,751
Inflation rate: 1.6%
National jobless rate: 7.2%
Monthly GDP growth: 0.3%

Source: Statistics Canada


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Darren MacDonald

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