Manufacturing Job Losses

For many people not involved in the manufacturing industry, our current ecomomic state is somewhat of a shock. I’ve been asked, “How can we suddenly be in a recession?”. The following statistics from Statistics Canada will provide a better perspective on where our economy has been heading for the past nine years.

The last time we saw any growth in employment in the manufacturing industry was from 1998 to 2000. 2001 to 2004 was a period of stagnation and from 2004 to 2008 job losses reached 322,000! In just four years, one in seven manufacturing jobs disappeared and one in five manufacturing jobs were lost in Ontario alone!

Statistics Canada further reports, ” These trends are not unique to Canada — manufacturing has been declining in most Organisation for Economic Co-operation and Development countries. The situation in Canada was noticeable for being somewhat delayed, with manufacturing jobs beginning to decline only in 2004, while other countries, notably the United States, had already registered significant job losses for several years.”

The Canadian Federation of Independent Business has been lobbying at the federal, provincial and local levels of government on behalf of small and medium sized businesses, (SME’s) for over 35 years and provides the following statistics:

Small and mid-sized enterprises (SMEs) are essential to Canadian society and its economy. SMEs play a role in shaping local communities, creating new jobs and serving consumers. Collectively, they generate close to half of Canadian GDP, according to a CFIB estimate based on National Accounts data. Small and mid-sized establishments, with fewer than 500 employees, represent 97 per cent of all Canadian businesses and employ 56 per cent of all workers.

Prior to our last Federal Election, the CFIB sent a questionaire to each of the party leaders to assess their level of support for entrepreneurs and small business. Despite the significance of SME’s, which account for the employment of six out of ten Canadians, no response was received from the Conservative Party of Canada.

If you have been have been affected by manufacturing job losses or are considering a career transition, call today for a free resume critique.

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