Northeast Ontario Economy to See Growth in 2014, Resource Industries to Lead the Way
The Greater Sudbury Chamber of Commerce and the Credit Unions of Ontario release economic outlook for Ontario’s Northeast Region
[Greater Sudbury], ON, Jan 15, 2014: Economic growth in Ontario’s Northeast will remain sluggish in the near term with the mining sector seeing spotty improvement, according to a new economic outlook released by the Greater Sudbury Chamber of Commerce and the Credit Unions of Ontario.
After losing 8,400 jobs in 2012 and 2013, the region will see a modest growth in employment over the next two years, as it regains nearly 4,000 jobs by 2015. The region’s unemployment rate will fall from a high of 7.8 percent in 2011 to 6.6 percent in 2015, as job creation outpaces growth in the region’s labour force.
Industries contributing most to economic growth are primary resource industries, retail-wholesale trade, health-social services and a variety of other service industries. Construction contributes only marginally to forecast growth.
The region’s housing market continues to perform strongly. Housing prices in the region rose at an average rate of 4.3 percent over the last 3 years, from $200,457 in 2011 to $214,500 in 2013. The average price of a home is projected to grow by over 8 percent over the next two years.
“A key trend in the short-term will be rising employment and housing sales, which we are hopeful will offset some of the barriers to economic growth”, says David Boyce, Chair of the Board, Greater Sudbury Chamber of Commerce.
Major projects in the region contribute materially to investment spending and employment. Construction on Vale’s emission reduction project at the Copper Cliff Smelter in Sudbury continues through 2015, and construction is projected to begin in 2014 on Vale’s $814 million Copper Cliff underground nickel mine expansion near Sudbury. The White River Sugar Zone and Kenora-Kenbridge mines and mills are both in the permitting stage with construction completion expected in 2015. Construction continues in the near term on the St. Mary’s co-generation plant in Sault Ste. Marie and the New Post Creek hydroelectric project. Construction also continues on Ontario Hydro’s $2.5 billion investment in hydroelectric infrastructure in the Lower Mattagami River north of Timmins.
“2014 will be the year we see major industries leading the path in economic growth for our region”, adds Boyce.
Key Facts and Highlights
-After overall job losses in 2012 and 2013, the region will see a modest rebound over the next two years, as it regains nearly 4,000 jobs.
-Northeastern Ontario’s unemployment rate will fall from a high of 7.8 percent in 2011 to 6.6 percent in 2015, as job creation outpaces growth in the region’s labour force.
-Housing prices in the region continue to grow rapidly, at an average rate of 4.3 percent over the last 3 years, from $200,457 in 2011 to $214,500 in 2013. The average price of a home is projected to grow by over 8 percent over the next two years.
-The region’s population is in decline, losing an average of over 2,000 people a year over the last two years.
-Cliffs Resources’ decision to halt their operations in Ontario has created uncertainty around the future of the proposed chromite smelter in Capreol, just outside of Sudbury, which would have created thousands of jobs.
The full economic outlook is available here.
For more information, please contact:
Joyce Mankarios
Policy and Communication Manager
705-673-7133 ext. 224 c: 705-677-5735
joyce(at)sudburychamber.ca