"Printing and Packaging Labour Market"
Labour Market Bulletin Windsor / Essex, Chatham-Kent Sarnia / Lambton Service Canada Area ~ An Analysis of the Windsor-Sarnia Area Labour Market ~ April to June 2008 ~ Volume 2 Issue 2 Second Quarter 2008 An overview of the Windsor Census Metropolitan Area and Economic IN THIS ISSUE: Region 570. HIGHLIGHTS .................................................... 1 (This includes Essex County, Chatham-Kent and Lambton County) LABOUR MARKET NEWS ....................................... 2 In the Windsor Census Metropolitan Area: Accommodation and Food ................................... 2 • Seasonal expansion did not take place in the Windsor CMA this quarter Agriculture ........................................................... 2 • A large number of people took themselves out of the labour force Business Services................................................. 3 leading to a lower unemployment rate Construction and Real Estate ............................... 3 • Labour force and employment levels down from previous year Education ............................................................. 3 Health and Social Services................................... 4 In Economic Region 570: • Modest seasonal expansion in Windsor-Sarnia area the second quarter Information, Culture and Recreation.................... 4 • Unemployment rate dropped slightly Manufacturing...................................................... 4 • Employment higher than previous year’s level Public Administration .......................................... 5 Transportation and Warehousing ......................... 5 Wholesale and Retail............................................ 5 HIGHLIGHTS LABOUR FORCE TRENDS ...................................... 7 FROM THE AUTHOR’S DESK ................................. 9 A new international bridge will be built linking Windsor to Detroit, Michigan. The Windsor Sarnia Area Labour Market Bulletin is a quarterly report produced by the area Labour Market General Motors announced that the Windsor Transmission plant will Information Analyst. This bulletin and other LMI close putting about 1,400 employees out of work. products may also be found on our website. (aussi disponible en français) For further information contact Labour Market Analysts: Another 150 employees will lose their jobs as four other smaller Deb Koscielski -- Chatham-Kent, Sarnia / Lambton businesses close or face challenges mostly related to the automobile Telephone: (519) 380-6853 industry. Email: firstname.lastname@example.org Diane Nease – Windsor / Essex Telephone: (519) 560-2529 Ford Motor Co. had good news for the Windsor community as it Email: email@example.com Visit our website at: www.labourmarketinformation.ca announced a $170 million investment to partially reopen the Essex Engine Plant. Note: In preparing this bulletin, Service Canada has taken care to provide clients with labour market information from reliable sources that is timely and The greenhouse industry in Chatham-Kent and Lambton County is accurate at the time of publication. Since labour expanding. market conditions are dynamic, some of the information presented here may have changed since the bulletin was published. Readers are encouraged to Chatham-Kent fruit farmers who grow peaches and pears for canning also refer to other sources for additional information have lost their market. on the local economy and labour market. Information contained in this bulletin does not necessarily reflect official policies of Service Canada. Suncor Energy’s St Clair (Lambton County) ethanol plant has started construction on a $120-million expansion project ~ An Analysis of the Windsor-Sarnia Area Labour Market ~ April to June 2008 ~ Page 2 of 10 ~ LABOUR MARKET NEWS Highlights on industry activities that have an impact on the local labour market, this information is derived from several sources including local newspapers, newsletters and various publications. Please refer to “Notes to Readers” for additional information. Accommodation and Food hampered by the strong value of the Canadian dollar, high cost of grain and fuel, and low cattle and hog prices. Indeed, the The Red Bull Air Race World Series was held on the Detroit federal government introduced a Cull Breeding Swine River during the first weekend in June 2008. This was the Program to assist farmers by paying $225 for each breeding first time these races were held between two countries at the pig removed from the herd. Farmers participating in this same time, making history for the Series and for the cities of program must agree not to raise swine for three years. Windsor and Detroit, Michigan. Thousands of people watched lightweight airplanes navigate very low to the ground Chatham-Kent fruit farmers who grow peaches and pears for through 65 foot high nylon pylons. This event helped draw canning have lost their market as CanGro closed its St. Davids business to the downtown stores and restaurants, and increase fruit processing plant near St. Catharines. Farmers are Windsor’s international profile. currently seeking alternate markets in Michigan. The federal government announced that it will invest about Windsor’s first Cora’s restaurant opened in the Walker Square $22 million to help tender fruit growers replace their current area this quarter, employing 65 people. A second location has trees and vines with crops that meet consumer demands. The been identified in Tecumseh with plans to open early in 2009. Orchards and Vines Transition Program will run until 2011. This will be the franchise’s first time having two restaurants in For more information, visit www.agricorp.com or contact a market of this size. Agricorp at 1-888-247-4999. On Highway 401, both the east and westbound service centres CanGro is also closing its vegetable processing plant in in Tilbury are closed for modernization until sometime next Exeter. The closure will hurt local farmers who grow peas year. and sweet corn. The tomato processing plant in Dresden will remain open. In Chatham-Kent and Lambton County a number of new restaurants have opened: a fine dining restaurant in Colio Estate Wines is among 35 Ontario wineries that will Wallaceburg called Southside Chicago’s, Hedden Out in benefit from the three-year Vintners Quality Alliance (VQA) Dresden, Coffee Culture Café and Eatery in Chatham, and Wine Support Program, designed to increase access to the Nutless Cones and More in Sarnia. marketplace through Liquor Control Board of Ontario (LCBO) outlets. Eligible wineries will receive a 30% rebate for the The bed and breakfast industry is also expanding in Chatham- first 120,000 litres of VQA table wines sold through the Kent and Lambton County with several new operations LCBO each year. opening in the spring of 2008. These accommodations will appeal to a variety of tourist tastes, from a Lodge and Livery Greenhouse tomato growers received an unexpected increase at Maefield Horse Farm in Plympton-Wyoming and bilingual in demand and product price (up to 20%) as a result of a service at Maison Bleu in Blenheim, to the peaceful relaxing salmonella outbreak in the U.S. in June 2008. Ontario atmosphere of Lake Erie Haven near Blenheim and Twin greenhouse vegetables are grown in a highly controlled Lakes Retreat near Sarnia. environment where production and packaging is regulated. All growers must provide the Ontario Greenhouse Vegetable Tourism Growers with annual proof of passing a food safety audit in order to obtain and keep their growers license. As gas prices continue to rise, the value of the Canadian dollar remains high, the uncertainty regarding border security, and In Essex County, Westmoreland Sales built a new $3.8 the decline of the United States economy, the tourism industry million, 100,000 square-foot warehouse to pack and ship is expected to decline again this year. tomatoes, cucumbers and peppers for 250 greenhouse growers. They employ about 200 workers. Agriculture The greenhouse industry in Chatham-Kent and Lambton Statistics Canada reported that crop farmers experienced a County is also expanding. Greenhill Produce has invested relatively good year in 2007 but livestock farmers were over $6.5 million to add 10 acres to their pepper operation. ~ An Analysis of the Windsor-Sarnia Area Labour Market ~ April to June 2008 ~ Page 3 of 10 ~ The expansion will add 10 employees to its labour force. • Goodwill Industries Essex-Kent-Lambton is building a Greenhill Produce has the space and approval for further new 12,000-square-foot facility in Chatham. expansion in the coming years. • In Sarnia, a new Scotiabank will be constructed a second building will be built at the same time for commercial In Lambton County, the Enniskillen Pepper Co. Ltd. is ventures ($3 million) investing $4-million to add seven acres to their six acre hydroponic greenhouse operation. Their work force will Institutional increase from 20 to 30 employees. • In Windsor, a 155-unit seniors’ residence on Riverside Drive East featuring several amenities such as spa, theatre, pub, and wellness centre will open in 2009 ($36 Business Services million) • Leamington’s Arts Centre will have an elevator installed VistaPrint North American Services Corp. is poised to add and other renovations to lighting, barrier-free washrooms, another 100 people, bringing the size of its workforce to 450 ceilings, and flooring ($436,000) staff. This employer will invest $20 million in an expansion • Frontline Christian Fellowship is erecting a church in of its Lakeshore plant. Additional land has been acquired for LaSalle ($820,000) long-term growth which could see the company double in size again by 2012. VistaPrint is involved in high-quality graphics Utilities and customized printing, taking orders through the Internet • Construction of the Waste Management’s Warwick from customers around the world. Landfill expansion will commence in July 2008 ($7million) Construction and Real Estate In May 2008, the Windsor Census Metropolitan Area (CMA) Education vacancy rate reached 13.2% – far greater than the next highest With declining enrolments at both elementary and secondary rate in Moncton at 5.5%. The Canadian Mortgage and schools, provincial funding for both public and Catholic Housing Corporation explained that the combination of boards of education will be reduced. The reduction in student affordable residential ownership and out-migration for better numbers has been attributed to a combination of less employment opportunities has driven the rate up. international- and out-migration (due to economic constraints) and demographic changes (as the population ages beyond Area industry workers eagerly anticipate the start of child-bearing years). construction now that the third international crossing site has been formally announced. The president of the Essex and The Windsor Essex Catholic District School Board will cut Kent Counties Building and Construction Trades Council 105 teaching positions in September 2008 but are hopeful that explained that the new work will substantially benefit approximately half of these will be off-set by attrition. The construction labourers, carpenters, operator engineers, and Greater Essex County District School Board will eliminate 27 truck drivers along with other occupations. Any housing or teaching positions (all will be absorbed through attrition). In buildings expropriated for the bridge, plaza, and access routes Lambton County and Chatham-Kent, two schools are being would likely be rebuilt elsewhere, creating additional demand reviewed for closure: St. Mary School in Blenheim (St. Clair for construction workers. Construction is slated to start in late Catholic District School Board) and the Devine Street Public 2009, ending in 2013; the estimated cost is $1.6 billion. It has School (Lambton Kent District School Board) in Sarnia. It is been reported that the economic impact of building and road- expected that both schools will close in June 2009. work could be up to $4 billion and generate 25,000 person- years of work. A private school offering an international baccalaureate program is opening in Chatham. Chatham College School is Suncor Energy’s St Clair (Lambton County) ethanol plant has accepting registrations for September 2008. started construction on a $120-million expansion project which will employ more than 250 construction workers. St. Clair College and Lambton College will receive the first Work is expected to be complete by the end of 2009. installment of a three-year $60-million college funding program from the Ministry of Training, Colleges and Work on a $3-million road project in Chatham has Universities to purchase new, modern equipment for commenced and is expected to last from June to October 2008. classrooms and labs. St. Clair College will receive $396,000 in funding. Lambton College will receive $203,480 in funding. Construction projects underway include: Commercial • Plaza on Windsor’s Forest Glade Drive has new owners who intend to renovate and attract new tenants ($250,000) ~ An Analysis of the Windsor-Sarnia Area Labour Market ~ April to June 2008 ~ Page 4 of 10 ~ Health and Social Services Leamington will soon have 50-bed accommodation for low- to middle-income seniors. Renovations (estimated at $575,000) Manufacturing will incorporate a dining area, café, and solarium. The Compassionate Alternative Care retirement home will be Domestic automakers are reeling from changing consumer ready for occupancy by August 2008. sentiment about their products and reduced consumption as the weakening economy tries to adapt to significantly higher With provincial funding, the Town of Essex may see a nurse fuel prices and tighter constraints on credit. The Council for practitioner clinic open by March 2009. Nurse practitioners Automotive Human Resources indicates that “dislocation” are part of the province’s HealthForceOntario strategy to experienced by both employers and workers are likely to increase the number of health professionals in the field. The continue to 2014, with risks even to the long-term viability of clinic anticipates a staff of up to five nurse practitioners who the automotive industry.1 New jobs in this sector will have are skilled in diagnosis yet in collaboration with a physician greater emphasis on strategic skills: electro-mechanical either by phone, in-person, or electronically. interface (understanding the electronic and mechanical aspects in the entire production stream) and supply chain efficiency The tri-county’s Erie St. Clair Local Health Integration (optimizing tasks at all points of production).2 Network (LHIN) will receive $31 million over three years to fund their senior’s health service proposals under the Aging at Closures Home Strategy. In the first year initiatives include meal delivery service, transportation, assistive devices, extended General Motors (GM) announced that the Windsor home care, and end-of-life care. Transmission plant will close in the second quarter of 2010. This will put approximately 1,400 people out of work. There is no new product for this plant to build as the market has shifted away from the automatic four-speed to more fuel- Information, Culture and Recreation efficient six-speed transmissions. Once this plant is closed, Caesars Windsor officially opened in June 2008. The high General Motors will no longer directly employ anyone in this profile brand name is widely recognized by about 43 million area. It will also mean that the Canadian Auto Workers loyal patrons who can use “Total Rewards” cards at any (CAW) Local 1973 will no longer have a function for active Harrah’s or Caesars casino. The Windsor location will have members and will cease to exist. the highest table limits in Canada – up to $50,000 on some games like craps and blackjack. This high-limit wager is Plastech Engineer Products Inc. closed this May, affecting significantly larger than the neighbouring Detroit casinos can about 270 employees (60 were already laid off). This was a offer. significant-sized employer in the Leamington community. The closure was due to a loss of customer base and increasing Caesars Windsor’s $439 million renovations added no new costs. This company produced plastic grills and bumper gaming areas but rather diversified the space to include covers for the “Big Three” automakers. additional hotel rooms and convention centre. The increased amount of meeting space means that conventions of up to ITW Foils Plastics and Securities will close in June 2008, 2,000 people can be accommodated. This will allow Windsor putting about 50 people out of work. The reason for closure is to compete with other major cities to attract delegations and said to be the rationalization of excess manufacturing capacity. prominent entertainers, ultimately helping boost the area’s Remaining production will be relocated to the U.S. This tourism industry. company produced the metallic plastics used on various items such as credit cards. The Amherstburg Bingo Palace closed in May 2008, affecting 19 employees. The area bingo industry has struggled with Falcon Tool & Die Ltd. will close in early August 2008, declining attendance for several years. Many halls made affecting almost 30 workers. The current economic climate efforts to stave off revenue losses by reducing the number of and global competition were cited as reasons for the closure. sessions. Some charitable organizations will be negatively impacted by the end of this revenue stream. Peterson Spring of Canada Ltd. located in Windsor is slated for closure in May 2009 affecting approximately 25 workers. The Capitol Theatre of the Municipality of Chatham-Kent has Another plant in Kingsville will remain operational. recently qualified for $7 million of provincial funding to complete the theatre renovation. A tender call should be approved the summer of 2008 with construction to be 1 completed by the end of 2009. The Capitol Theatre will have www.cahr-crha.ca , “Competing Without A Net: The Future of the Canadian Automotive Industry Complete Report”, April 2008. the capacity for large live performances with seating for 1,200 2 www.cahr-crha.ca , “Changing Gears: Skills Transition in the Canadian people. Automotive Industry”, April 2008. ~ An Analysis of the Windsor-Sarnia Area Labour Market ~ April to June 2008 ~ Page 5 of 10 ~ Challenges will now be able to offer a broader range of documentation services such as passport and visa applications; Canadians can Royal Polymers in Sarnia still has most of its employees on apply to work in Mexico from this office as well. layoff as the mortgage and real estate industry in the U.S. remains poor. The company is reviewing the situation The United States will establish an on-line consulate for the quarterly and a decision should be made by August 2008. Windsor – Sarnia area. There are three other U.S. virtual presence posts in the Northwest Territories, Yukon, and When GM closes its truck plant in Oshawa next year, Nunavut. The Web site has information on trade, passports, Woodbridge foam in Tilbury will feel the effects. The Tilbury and other policies at www.swontario.usvpp.gov plant supplies foam pieces to the truck plant. New business will need to be found to protect the 150 jobs at the plant. Both Chatham-Kent ($491,362) and Leamington ($72,796) will receive extra funding from the provincial government to Mahle Filter Systems in Tilbury and the CAW recently ensure enhanced community safety by hiring more police reopened their contract to look for savings to keep the plant officers. This is part of the provincial initiative to pay the open. A new deal was made but layoffs may still be salary-related cost of over 2,000 additional police officers in unavoidable. The current deal is valid until 2010. Ontario. Chatham-Kent will receive $491,362 in funding. Leamington will receive $72,796 receive in funding. Growth Transportation and Warehousing Ford Motor Co. had good news for the Windsor community as it announced a $170 million investment to partially reopen the The Windsor Port Authority anticipates an increase in tonnage Essex Engine Plant. About 300 workers will be recalled to due to the new bridge construction, customs plaza, and produce engine parts starting in autumn 2009. The final approach roads which will require large amounts of aggregate reopening phase (which could also employ 300 people) will – a coarse construction material used for foundations and road depend on federal government funding to enable the plant to beds. Other cargo shipping activity would be generated if the assemble a new fuel-efficient V8 engine. many wind farm proposals for the tri-county are approved. International Truck and Engine will recall 200 laid off workers The Windsor Airport began $600,000 worth of renovations as truck production moves from 65 units to 125 units per day. this May, which will be complete by the end of 2008. A new International’s new ProStar truck is in demand as both fuel- pre-boarding area, café, lounge, and children’s area will be efficient and aerodynamic. International Truck and Engine added. These upgrades were prompted by new charter flights has a plant-wide vacation shutdown early this July. to the Dominican Republic and Cuba. Sunwing Airlines has committed to fly twice each week to these destinations Southwestern Manufacturing Inc. expanded its operation in through the winter months for the next three years. west Windsor and will hire another 40 workers. This company supplies custom steel fabricated machine parts and equipment for other producers. Wholesale and Retail Zehrs intends to renovate and in some cases rename several Windsor’s Dieffenbacher North America Inc. plant is stores in the tri-county area this year. Two stores are located undergoing an expansion (valued at $8 million) which will in Windsor as well as the St. Clair Beach, Kingsville, LaSalle, result in the hiring of an additional 10 people. This company Essex, and Tilbury stores. The more than $17 million designs and manufactures hydraulic presses and production investment will allow for expanded lines of fresh and systems for the wood panel and automotive components international foods, clothing and outdoor-living items. One industries. other Zehrs store in Windsor will close, but it is expected that all 50 workers will be absorbed through attrition. Some stores Property where the former Chrysler Pillette Road Assembly will be re-branded to discount outlets. Employees will have a Plant stood has been purchased and will be redeveloped into a “buy-down” option which provides compensation for taking research, light assembly, and logistics site. Future plans for lower-paid positions. this business park can be viewed at www.grandcentralpark.com SAAN Stores across Canada are going out of business. Stores closing in this area are located in Amherstburg, Essex, Kingsville, Tilbury, Ridgetown, Wallaceburg (Red Apple), Public Administration Petrolia, and Forest with almost 100 employees losing their The Mexican Consulate, established in Leamington in 2005, jobs. In the first quarter of 2005, organizational restructuring will become a full-service site. This designation will translate was announced but the company has failed to remain solvent. into new staff and equipment for the office. The Consulate Most stores will be closed by the end of summer 2008. ~ An Analysis of the Windsor-Sarnia Area Labour Market ~ April to June 2008 ~ Page 6 of 10 ~ In Wallaceburg the Red Apple SAAN store will reopen as a Field Department Store in early June 2008. A new 17,000 square-foot Shoppers Drug Mart has opened In Tilbury with 60 employees – double the amount employed in The Walker Road retail centre added two new shops this the old 4,000 square-foot store. quarter: Winners opened its third store employing 70 people and, BouClair, a home décor store opened. Lowe’s Home Other new businesses opening in the area include: The Tickle Improvement Warehouse, a new chain to this area, is expected Trunk Children’s Apparel, The Bread Store, Ann’s Tobacco to open in the same vicinity by the end of this year. Shop, canyousaysold.com, Judy’s Hair Design, New Image Approximately 175 people will staff the store. Managerial 11, Mod Bodz, Marilyn’s Esthetics, Home and Building and professional positions are currently being recruited on-line Plumbing Service, LV Electronics Ltd., Small Engine Sales at www.lowes.ca/careers and Service, and Dale’s Concierge all in Chatham-Kent. New business in Sarnia and Lambton include LUX (a woman’s A new company called Sellers One Source opened a store in clothing store), The Quilt Shop, Local Motif—Gifts of Windsor and has plans for stores in Leamington and Chatham. Distinction, P-Town Tech Computer Services, Bluewater Bike This employer purchases brand-named electronic and Rentals, and Oasis Hair and Body Studio. appliances from national chain stores then reconditions and resells the products. About 11 people have been hired to work as technicians and sales clerks. ~ An Analysis of the Windsor-Sarnia Area Labour Market ~ April to June 2008 ~ Page 7 of 10 ~ LABOUR FORCE TRENDS The Windsor CMA did not experience the usual seasonal expansion in the second quarter of 2008. Labour force and employment levels fell for the second straight quarter. The labour force fell by 6,600 or 3.8% compared to the first quarter. Although there were gains of 2,300 part-time jobs, it could not off-set the loss of almost 6,000 full-time jobs. Despite the job losses, the number of unemployed actually declined by 3,100 as people withdrew entirely from the labour market. With almost 7,000 people leaving the labour force in the Windsor area, the unemployment rate went down to 8.3% from 9.7% last quarter. The area still has the highest Census Metropolitan Area unemployment rate in Ontario, as well as sitting above the provincial average of 6.5%. Year over year, labour force and employment levels were below their previous year’s level. The labour force fell by 4,800 compared to the same time last year. Employment fell by 2,300 or 1.5%. The number of unemployed also fell by 2,400 or 14.6% resulting in almost 6,000 people withdrawing entirely form the labour force. Perhaps many were discouraged by the massive job losses in the manufacturing sector over the past year. This resulted, however, in the unemployment rate dropping to 8.3% from 9.4% the same time last year. Windsor Census Metropolitan Area Labour Force Trends Second First Second Quarter/Quarter Year/Year Quarter Quarter Quarter Change Change 2008 2008 2007 Absolute % Absolute % Population 15 + (‘000) 272,500 272,300 271,500 200 0.1 1,000 0.4 Labour Force (‘000) 169,200 175,800 174,000 -6,600 -3.8 -4,800 -2.8 Employed (‘000) 155,300 158,700 157,600 -3,400 -2.1 -2,300 -1.5 Unemployed (‘000) 14,000 17,100 16,400 -3,100 -18.1 -2,400 -14.6 Not in Labour Force (‘000) 103,300 96,600 97,600 6,700 6.9 5,700 5.8 Participation Rate (%) 62.1% 64.6% 64.1% -2.5 -2.0 Unemployment Rate (%) 8.3% 9.7% 9.4% -1.4 -1.1 Employment Rate (%) 57.0% 58.3% 58.0% -1.3 -1.0 Note: Totals may not add due to rounding. Source: Statistics Canada, Labour Force Survey. Labour force and employment contracts in the Windsor's unemployment rate drops but still Windsor CMA higher than the provincial average Labour Force ('000s) 200 12 10 150 8 6 % 100 Unemployment 4 Windsor CMA Employment 2 Ontario 50 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2006 2007 2008 2006 2007 2008 ~ An Analysis of the Windsor-Sarnia Area Labour Market ~ April to June 2008 ~ Page 8 of 10 ~ Employment levels in the Windsor-Sarnia area rose by 1,800 in the second quarter of 2008 compared to the first quarter. Full-time employment grew by 3,400 or 1.4%, partially off-set by the loss of 1,600 part-time jobs. This seasonal expansion is a normal trend for this time of year. With fewer people unemployed, the unemployment rate dropped to 8.2% from 8.6% last quarter. Year over year the employment level rose by about 3,000 – all for full-time jobs. With little change in the labour force and with 3,500 fewer people unemployed, the unemployment rate dropped one whole percentage point to 8.2% from 9.2% the same time last year. Economic Region 570 Labour Force Trends Second First Second Quarter/Quarter Year/Year Quarter Quarter Quarter Change Change 2008 2008 2007 Absolute % Absolute % Population 15 + (‘000) 525,900 525,600 524,200 300 0.1 1,700 0.3 Labour Force (‘000) 341,000 340,800 341,600 200 0.1 -600 -0.2 Employed (‘000) 313,200 311,400 310,200 1,800 0.6 3,000 1.0 Unemployed (‘000) 27,900 29,300 31,400 -1,400 -4.8 -3,500 -11.1 Not in Labour Force (‘000) 184,900 184,900 182,700 0 0.0 2,200 1.2 Participation Rate (%) 64.8% 64.8% 65.2% 0.0 -0.4 Unemployment Rate (%) 8.2% 8.6% 9.2% -0.4 -1.0 Employment Rate (%) 59.6% 59.2% 59.2% 0.4 0.4 Note: Totals may not add due to rounding. Source: Statistics Canada, Labour Force Survey. Unemployment rate drops slightly in the Windsor- Modest seasonal expansion in employment in Sarnia area Windsor-Sarnia area Labour Force ('000s) 400 12 350 10 300 8 250 % 6 200 Unemployment Employment 4 150 E.R. 570 100 2 Ontario Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 2006 2007 2008 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2006 2007 2008 ~ An Analysis of the Windsor-Sarnia Area Labour Market ~ April to June 2008 ~ Page 9 of 10 ~ FROM THE AUTHOR’S DESK People havebeen using wind power for centuries. During the last 20 years, wind power has surged globally as a good source of electricity. According to the Global Wind Energy Council, at the end of 2006 there was 74,223 MW of installed wind power capacity worldwide.3 World leaders in wind energy are Germany, United States, Spain, Denmark, and India. The Canadian Wind Energy Association (CanWEA) states that as of July 2007, the total installed capacity of wind farms in Canada was 1,588 MW or enough to power 480,000 homes. Ontario’s capacity is just over 415 MW, which in Canada, is second only to Alberta.4 Wind power is gusting through southwestern Ontario. In the tri-county area alone 340 wind turbines with a potential capacity of 620 megawatts are in various stages of proposal. Some of the companies proposing these wind farms include BowArk Energy, Gengrowth, Wind Prospect Inc, Suncor Energy AIM PowerGen Corp., and TransCanada Energy. Proposals go through many phases and assessments before being approved. This process can take months and even years before a wind farm goes from planning to producing energy. In the tri-county area, one wind farm named Sky Generation’s Ravenswood Wind Farm (Lambton County) is now operating with six turbines capable of producing 10 megawatts. Another wind farm, Kruger Energy Port Alma (Chatham-Kent), should be in operation by September 2008 with 44 turbines and a potential capacity of 101.2 megawatts. Building a wind farm can cost between $1.8 to $2.2 million per megawatt. Through each phase of building a wind farm there is the potential to create jobs or increase hours worked. Potential jobs include everything from surveyors and labourers to restaurant and hotel workers as access roads are constructed, turbine foundations and structures necessary for transmission are built, and turbines are transported to sites. The Kruger Energy Port Alma wind farm is one. The Chatham-Kent 4Business newsletter reports construction of the project will create up to 70 jobs, generate $35 million to the local economy and once operational, will employ six people at its two million dollar a year operation.5 Also of note is that each foundation requires: • approximately 20 days to complete from excavation to back filling • about 39 tons of rebar for each foundation • 360 cubic meters of concrete or the equivalent of 40 concrete trucks (about $3 million worth) • five hours to pour the concrete for one turbine foundation6 Between April and August 2008, Kruger’s 44 turbines will arrive in Windsor from Germany by freighter. They will be transported to Chatham-Kent by truck. It will take seven trucks to move one turbine. Some roads will need to be temporarily widened and traffic lights will need to be removed. When construction is complete the roads and access roads will be returned to normal and farming on the site will continue. While the construction jobs created when building a wind farm are an economic advantage there are many other economic opportunities for the community: an increase in tax revenue for the municipality, consumption of local goods and services, a second income for farmers from land lease agreements, potential to boost tourism, and benefit for the rural area from the increased connectivity required by the wind farm operation to name a few. Both the federal and provincial governments are committed to increasing renewable energy capacity though sources such as wind. Wage Earner Protection Program In early July 2008 Jean-Pierre Blackburn, Minister of Labour announced the launch of the Wage Earner Protection Program (WEPP). This program provides protection for workers whose employers declare bankruptcy or go into receivership. Under WEPP, eligible 3 http://www.ontario-sea.org/RE_wind.php 4 http://www.ontario-sea.org/RE_wind.php 5 Chatham-Kent 4Business Summer Edition 2007 www.chatham-kent.ca/default.htm 6 Chatham-Kent 4Business Winter Edition 2008 www.chatham-kent.ca/default.htm ~ An Analysis of the Windsor-Sarnia Area Labour Market ~ April to June 2008 ~ Page 10 of 10 ~ workers can receive compensation for wages and vacation pay owed to them by their employers in an amount equaling up to four weeks maximum insurable earning, as defined by the Employment Insurance Act. For more information: CALL: 1-866-683-6516, CLICK: www.servicecanada.gc.ca or VISIT a Service Canada Centre The Second Career Strategy The Second Career Strategy will help recently laid off, unemployed workers retrain in order to make the transition to a new career in a high-skill occupation which is in demand in their area. The strategy provides financial assistance, based on individual need, to help people with some of the costs associated with a long-term training including the cost of tuition and books. Recently laid-off, unemployed workers – whether eligible for Employment Insurance or not – can apply to participate in the Second Career Strategy. For more information • call the toll-free Employment Ontario hotline at 1-800-387-5656, • go to www.ontario.ca/secondcareer, or • visit your local Employment Ontario office. Notes to Readers: 1. The Windsor Census Metropolitan Area is comprised of the City of Windsor, LaSalle, Amherstburg, Essex and Tecumseh. 2. For the purpose of this publication, the Economic Region 570 includes the Windsor Census Metropolitan Area , the remainder of Essex County including Kingsville, Leamington and Pelee Island; all of Chatham-Kent which is made up of the former City of Chatham and the former towns – Wallaceburg, Blenheim, Dresden, Tilbury, Ridgetown and Bothwell and the former townships – Chatham, Dover, Harwich, Howard, Zone, Romney, Raleigh, Camden, Tilbury East and Orford of Kent County; as well as Lambton County consisting of the City of Sarnia, Township of Brooke-Alvinston, Township of Dawn-Euphemia, Township of Enniskillen, Municipality of Lambton Shores, Oil Springs, Petrolia, Plympton-Wyoming, Point Edward, Township of St. Clair and the Township of Warwick. 3. . 4. The information contained in the Labour Market News section is gathered using a variety of internal and external sources. The primary sources of information include The Windsor Star, Essex Free Press, Leamington Post, Chatham Daily News, Tilbury Times, The Sarnia Observer, Petrolia Topic, London Free Press, Windsor Business, Trends in Business and data from Statistics Canada Labour Force Survey and the Ministry of Labour. 5. Definitions – Labour Force Survey data Population 15+ (the working age population) consists of all persons 15 years of age and over residing in Canada with the exception of residents of the Territories, persons living on Indian Reserves, inmates of institutions and full-time members of the Canadian Armed forces. The Labour Force consists of people employed or unemployed and searching for work. Those who are neither employed nor unemployed and are not willing or able to supply labour services are considered Not in the Labour Force. The Participation Rate is the percentage of the working age population (15+) who are seeking work or are employed. The Unemployment Rate is the number of people who are unemployed and looking for work as a percentage of the number of people in the Labour Force. The Employment Rate is the number of people employed as a percentage of the working age population. 5. Definitions – Service Canada Centre Corporate Data Employment Insurance claim load: The number of individuals with an active claim for regular Employment Insurance benefits. Data on Employment Insurance claimants is not an accurate measure of the absolute level of unemployment. The data does not include unemployed individuals who: 1/ have not met the program's eligibility requirements or 2/ have exhausted their benefit entitlement. Employment Opportunities: Advertised employment opportunities are comprised of vacancies notified to the SCC offices in our area and newspaper want ads. This data is not a count of all labour market activity; in practical terms, such a count is not feasible. This data is useful to track short and long-term changes in the demand for individual occupations. The total number of opportunities is equal to full-time plus part- time and casual. 6. This review uses data from Statistics Canada’s Labour Force Survey (LFS). In any survey there is a chance of variation due to sampling size. Three-month moving averages are used for selected labour force characteristics in an attempt to improve the reliability of this data. For further information on the Labour Force Survey, visit Statistics Canada's website at: http://www.statcan.ca/english/sdds/3701.htm 7. For more information on Industrial and Occupational categories used in this review, visit Statistics Canada's website at: http://www.statcan.ca/english/concepts/index.htm