Thursday, October 5, 2006

Study: Employment growth in Northern Ontario's communities

Communities in Northern Ontario that had a diversified economy in 1981 were more likely to experience employment growth during the following two decades than their less diversified counterparts, according to a new study.

However, over time, this growth in employment was associated with a tendency towards economic specialization. By 2001, communities often became more economically specialized as the workforce shifted from the primary sectors of farming, forestry and mining to the service sectors.

This study analyzed the degree of economic diversification or specialization in 79 Northern Ontario communities between 1981 and 2001, and its relationship to the workforce. While the region covers almost 90% of Ontario's land mass, it had a population of only 786,500 in 2001.

Between 1981 and 1991, employment levels in Northern Ontario rose at an annual average rate of 1%. However, between 1991 and 2001 they fell at an average rate of 0.6% a year. By 2001, this had resulted in a workforce only 4% above the levels of 1981.

Every urban centre of more than 10,000 inhabitants in Northern Ontario lost jobs between 1996 and 2001. The study found that the proximity of a community in Northern Ontario to the larger cities did not affect the likelihood of employment growth.

There was a wide range in employment growth among the communities of Northern Ontario during these years. About 72% of the communities had employment growth, while 28% experienced a decline.

The general pattern was that job losses were substantial in the primary sectors (agriculture, forestry and mining) and in the sectors that process primary sector commodities (such as sawmills, pulp and paper mills and smelters).

The study found that the challenge Northern Ontario communities have to face to increase their workforce is to find new or different products to export from their communities.

The Agriculture and Rural Working Paper, entitled "Northern Ontario's Communities: Economic Diversification, Specialization and Growth", 1981 to 2001 (21-601-MIE2006082, free), is now available from the Publications module of our website.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Ray Bollman (613-951-3747; ray.bollman@statcan.ca), Agriculture Division.

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