jje1000
Senior Member
Economic news in general- basically the economy is hot, and lots of people move here. However, not all of them land jobs right away as there are skill mismatches.
Toronto’s economy is hot. So why is its unemployment so high?
By Josh Rubin Thu., June 20, 2019
Toronto’s economy is hot. So why is its unemployment so high?
By Josh Rubin Thu., June 20, 2019
Yes, at 6.3 per cent as of May, Toronto’s unemployment rate is higher than the rate in Oshawa (5.3), Windsor (5.7) and Hamilton (4.3). It’s also higher than the rate in Montreal (5.6), Winnipeg (5.2), Saskatoon (6.0), Vancouver (4.3), the national average for Canada (5.4) and the provincial average for Ontario (5.2).
The reasons are many, and, ironically, many are tied to the city’s success.
Because the city is seen as the place to go when you’re looking for work, it attracts a lot of unemployed young people and recent immigrants to Canada.
The problem is, once they arrive, finding work isn’t always as easy as they expected.
“Toronto has always been higher than the national average,” said Ryerson economist Amy Peng. “There are more young people and immigrants in Toronto than many other cities, and those are groups which have higher unemployment.”
Toronto’s high unemployment rate can seem puzzling, because, in many sectors there’s a shortage of labour. That, says Peng, means there’s likely a mismatch between the skills job-seekers have and the positions employers are looking to fill.
“If a city like Toronto has a historical problem of high unemployment, combined with a labour shortage problem reported by firms, it means that the skill mismatch gap (is) high as well,” said Peng, who pointed to several Bank of Canada surveys of businesses citing a shortage of potential employees.
Better training for young people, as well as more readily recognizing newcomers’ credentials and on-the-job experience in their home countries would help reduce the unemployment rate, Peng argued.
Still, despite a higher rate than the national average, unemployment in Toronto is far from disastrous, said Kavcic.
“This is a strong labour market here in Toronto,” said Kavcic. It’s just that some of that strength might not be showing up in the official numbers.
With the cost of living so much higher in Toronto than in surrounding areas, a lot of people working in the city actually live in nearby cities. And those people’s employment status shows up in the data for the city where they live, not the city where they work.
“What we’ve seen over the last few years is a lot of the employment strength in Toronto actually showing up in places like Hamilton, Barrie or Kitchener,” said Kavcic.
Toronto’s economy is hot. So why is its unemployment so high?
A few factors are in play: Toronto attracts people looking for a job and the city is so big job-seekers may not want to cross it to work. And there’s a mismatch between the skills employers need and those that would-be employees have. Also, people living in Toronto sometimes work elsewhere
www.thestar.com