May 22, 2014
(TORONTO) – New research shows that Hudak’s proposed cuts of 100,000 public sector jobs would have devastating effects across the province and lead to skyrocketing unemployment rates for many communities.
The job cuts will introduce new and substantial threats to cities, such as London and Ottawa, which will face an estimated 7,116 and 11,159 job losses respectively, propelling them toward worsened economic outlooks. In other communities already hit hard by the recent recession, the cuts will deepen economic hardship by driving unemployment up by 2.5 percent in Niagara and 2.4 percent in Windsor.
Badly hit will be Peterborough with estimated job losses of 2,057. This would drive the unemployment rate up by 3.2 percentage points to 14.8 percent, based on the latest unemployment figures. Kingston would suffer estimated job cuts and losses of 3,333, pushing its unemployment rate up to 10.2 percent; and Thunder Bay would lose 2,460 jobs, driving unemployment up to 9.6 percent.
“This research points to the danger of Hudak’s brash schemes. Especially in smaller- and medium-sized communities outside Toronto, economies and peoples’ futures will be seriously threatened; it will take years to recover,” warned OFL President Sid Ryan.
“Hudak’s plan will devastate families and communities that are already struggling,” said CUPE Ontario President Fred Hahn. “They’ll mean more hospital bed closures and fewer supports in schools for children. They will mean longer wait lists for vital public services such as child care, developmental services and long-term care beds. We need more jobs and public services, not Hudak’s cuts.”
This research also accounts for the impacts that public sector job losses would have on employment in the private sector. “Local businesses and downtowns will be the first to feel the pain. People without paychecks necessarily watch their pennies carefully, and it is a given that when these workers lose their jobs, they will not be contributing to the local economy as they once did,” said Ryan
The research was conducted by CUPE Senior Economist Toby Sanger. The job loss and unemployment numbers were calculated using the most recent detailed data on employment by industry and occupation for Ontario communities from the National Household Survey and the Labour Force Survey, excluding sectors that would not be affected. It also takes into account the spinoff job losses that would be experienced in the private sector using a standard economic jobs multiplier of 0.67.
The summary below documents the estimated impacts of Hudak’s proposed 100,000 public service job cuts in towns and cities across Ontario:
|Town or City(Census Metropolitan Area)||Estimated Job losses||Change in Unemployment||Resulting Unemployment based on April 2014 rates|
|St Catharines –Niagara||5,301||2.5%||10.7%|
|Kitchener – Cambridge – Waterloo||6,142||2.0%||8.8%|
For full report, click here.
For further information:
Sid Ryan, OFL President: 416-209-0066 or @SidRyan_OFL
Lynn Simmons, OFL Communications: 416-795-1427 or firstname.lastname@example.org
Craig Saunders, CUPE Communications: 416-576-7316 or email@example.com
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