Budget watchdog paints troubling picture about Ontario’s manufacturing sector

The Financial Economic Office is out with its latest economic review, and it found that manufacturing jobs in Ontario have fallen to the lowest point since 1976.

According to the report, manufacturing output has declined in seven of the past eight quarters, which is pre-President Donald Trump tariffs.

It’s a blow for the provincial economy as manufacturing represents 10 per cent of Ontario’s overall economy.

“Over the last few years, the sector has faced several challenges, including pandemic-related shutdowns, supply-chain disruptions, shipping issues, auto plant retooling, slowing demand and most recently, U.S. tariffs on Ontario’s exports,” the report states, with the latest losses coming in the auto sector, machinery and steel production.

During Wednesday’s question period in the legislature, Ontario Opposition Leader Marit Stiles reminded the Ford government just how long it’s been since the numbers have been this bad.

“I was putting Sean Cassidy posters on my wall in 1976. I was a little young, but I was doing that. Donna Summer was teaching us how to disco in 1976,” quipped Stiles.

The Ford government appears to be pouring cold water on the report, with Finance Minister Peter Behtlenfalvy pointing out the investments made by the government.

“We’re doing everything we can to support and protect Ontario families, businesses and workers. We’ve put in $30 billion of support – just this quarter, $2 billion of WSIB rebates are flowing into small businesses, medium-sized businesses,” he said during an unrelated announcement.

The report shows employment in the province declined by almost 2,000 in the third quarter, after losing 38,000 jobs in the previous quarter, marking the first back-to-back quarterly job loss since mid-2009, excluding the pandemic.

The unemployment rate remained unchanged at 7.8 per cent after nine straight quarterly increases.