With 129,000 jobs lost last month, one wonders when will this end? There has been speculation that the economy will recover half way through 2009 while other analysts speculate that the decline could last well into 2012. Regardless of the length of the decline, it is clear that hundreds of thousands more jobs will be lost before it is over. Unfortunately, most of the jobs that are being lost are good paying jobs.
It is no surprise that the manufacturing industry is steadily declining. This trend has been ongoing in Ontario for the past decade. The prominent manufacturing hubs of the 50s and 60s including Hamilton, Toronto, and Niagara have been losing factories and jobs at a slow pace since the 1970s. Unfortunately, the economic decline has accelerated the decline of the manufacturing sector. In Niagara alone, there have been numerous plant closures and layoffs announced for workers. One only has to look across the border to Buffalo to see what the lower golden horseshoe area could become as the manufacturing industry collapses. Buffalo underwent a major decline in the manufacturing industry since the late 1950s which has resulted in plant closures, population exodus and increasing crime.
The declining well-paid manufacturing jobs are largely being replaced by precarious, low-paid jobs. Before the economic decline, the decrease in manufacturing jobs was balanced by an increase in hospitality, tourism and service industry jobs. Hospitality and tourism jobs are a major sector in Niagara, and although there are some high paid positions, the majority are poorly paid and seasonal employment. Unfortunately, the hospitality and tourism industries in Niagara are also experiencing a decline. Many hotel workers have been told that they will not be hired back next summer because they are no longer needed.
Even the academic industry is experiencing a decline in Niagara. Brock University, one of the region’s largest employers, announced that each department will have to cut 5-7% off their budgets for the next 3 consecutive years. This will result in the loss of many part-time professor, teaching assistant, and research assistant jobs. It is unclear how the secondary and elementary systems will be affected in the short term, but if the decline stretches into 2012, surely the population will decline and there will be less demand for grade-school teachers as well.
Clearly urgent action is required. The NDP, CAW and other unions are calling for a Buy Canadian policy. This would be effective, but greater action is required. Many jobs and businesses have already exited Canada. Canada should also spearhead new international trade agreements to replace the old ones that have caused North America to bleed jobs and businesses for 2 decades. New trade agreements should set minimum worker wage levels and health and safety standards as requirements for countries to gain access to the free trade zone. This would discourage businesses from re-locating to countries where they can pay workers less than $1 per day. New international trade agreements should follow the example of NAFTA- in particular chapter 11 of NAFTA.
Clearly urgent action is required. This country is in desperate need of leadership that will take the help and lead Canada into a prosperous future.
