U.S. tariffs expose Windsor’s vulnerabilities

A “disappointing” trend in Windsor’s unemployment rate could continue into the same trajectory if the U.S. moves forward with 25 per cent tariffs, according to an industry expert.

Statistics Canada announced last week Windsor-Essex’s unemployment rate rose to 9.1 per cent in January – the second highest rate in the nation behind Red Deer, Alta.

Justin Falconer, the CEO of Workforce Windsor-Essex told CTV News the trend is in part due to an increase in the overall workforce.

“I think the participation rate is sort of a really interesting story. It’s up, you know, 2.7 percentage points, which is pretty significant,” Falconer said.

“That means nearly three extra people, out of 100 are looking or working, this, that, you know, right now compared to the same time last year.”

A silver lining in the date is a gain of 1,500 jobs, Falconer noted.

The increase in people employed or searching for a job could be due to population growth or families in need of added income to make ends meet.

“If it was a one-income household, you know, maybe, the second person is going to have a part-time job now, so I think what’s happening is there’s a growing number of people turning to look for work,” Falconer noted.

Data shows the region’s population grew by about 500 last month. Windsor’s consistent growth has meant the “yardsticks continue to move” for job growth, Falconer added.

As Canada stares down the threat of a U.S.-imposed 25 per cent tariff on Canadian goods, Statistic Canada further highlights industries at risk.

“In Windsor-Sarnia, automotive manufacturing industries accounted for 38.3 per cent of manufacturing employment and 7.3 per cent of total employment,” StatsCan’s report reads.

The region’s reliance was further outlined in a new Canadian Chamber of Commerce report, which ranks Windsor as Canada’s third most tariff-vulnerable city.

“A big part of our, employment base are our jobs are in manufacturing and also in agriculture. These are two big exporting operations or industries in our area,” Falconer said.

Falconer said the threat is “unsettling” for businesses and employees who are currently in a state of flux.

While it’s too early to estimate the impact, Falconer noted the tariffs could impact Windsor’s efforts to cut the unemployment rate.

“When the tariffs were in effect between March 2018 and April, May of 2019, we did at one point have 12.2 per cent unemployment,” he explained.”

“We lost thousands of jobs there were about 6 or 7000 jobs lost.”

“So I hope we could do a lot better with being more prepared this time, having weathered that, having some experience under our belt.”

Falconer hopes to see Canada secure expanded trade pacts with other nations to aid the economy. Additionally, he hopes to see U.S. lawmakers denounce the tariffs and the impacts they will have on both nations.