Niagara’s Labour Market
Niagara offers many competitive advantages to businesses who are considering new or additional investment in Ontario’s automotive manufacturing sector. Automotive-related manufacturing is the region’s main economic driver, with approximately 200 manufacturing firms in this sector. Niagara’s overall labour market of 210,400 provides businesses with an excellent labour pool from which to establish and expand their businesses.
Labour Availability
Current unemployment rate
The current (February 2006) unemployment rate is 7.5%. The Niagara unemployment rate is expected to remain comparable to the provincial and national averages over the next several years, thereby providing employers with labour market availability. Employment growth in Niagara since the early 1990’s has matched that of Ontario and Canada.
Average Labour Market turnover rate
Workers in Niagara have demonstrated a strong work ethic. Employee loyalty is another key advantage to Niagara employers. In some sectors, Niagara possesses the lowest employee turnover rate of any metropolitan area in Ontario.
Source: PricewaterhouseCoopers, 2001
Average Number of Job applicants per Job opening
The number of job applicants per job opening depends largely on the particular job and wage rates. It has recently been the experience of Niagara Economic Development Corporation that upwards of 100 job seekers may apply for entry-level administrative positions. Human Resource companies in Niagara confirm that within the overall unemployment rate there are a significant number of experienced manufacturing employees that are available, including both skilled trades workers and semi-skilled workers.
Labour QuaLity
College and university education and training is available through Niagara College, Brock University and several other publicly-funded post-secondary institutions within close proximity. Business technology support is available through specialized training facilities such as Niagara College’s Centre for Integrated Manufacturing and Applied Research.
Education attainment Level of Workers
More than half of Niagara’s population, (54.1%) over the age of 20 have a trade certificate or college/university education. The percent of Niagara Region’s population with a trade certificate/diploma, or with a college or university degree, is as high or higher than all comparable Ontario regions and the provincial and the national averages.
Source: Tom McCormack, Comparative Analysis, 2004
Productivity Level of Workers
The growth in Niagara’s Gross Domestic Product (GDP) has been consistent over the past decade. Between 1997 and 2003 Niagara’s GDP growth was 24%, matching Canada’s growth in productivity and keeping pace with the Ontario rate.
Source: Tom McCormack, Comparative Analysis, 2004
Union/Non-union Labour Market information
The following section provides background information on Niagara’s union and non-union labour market. The unionization rate for Niagara’s total employment labour force is 31%. This includes all public and private sector employees. As the chart below indicates, Niagara’s total non-government labour force is 134,100, with a total unionization percent of 21%. Niagara’s unionization rate in manufacturing, based on employees rather than companies, is higher due to 5 large manufacturing employers. Many large and small new companies establishing operations in Niagara, are successfully operating in a non-union environment. This is a developing trend among manufacturing in Niagara.
As the next chart demonstrates, from a company perspective, Niagara’s automotive sector has a low rate of unionization, only 34.62% of Niagara’s automotive companies are unionized. This documents that many small and medium-sized transportation related manufacturing firms in Niagara operate very effectively with non-unionized labour.
Labour Costs
Average Hourly Wages
The next chart indicates the Average Hourly Wage Rates for both union and non-union positions, as well as a combined average wage rates, within the St. Catharines-Niagara Census Metropolitan Area (CMA). Niagara’s wage rates continue to be competitive and below provincial averages for the various industries. The Niagara region is represented as the St. Catharines-Niagara CMA for statistical purposes.
Labour Incentives
There are a number of provincial labour market incentive programs available to employers in Niagara. These programs are designed to offset training costs and increase overall employment. These programs include:
Apprenticeship Training Tax Credit
The maximum tax credit per qualifying apprentice is $5,000 per taxation year up to a maximum of $15,000 over the first 36 months of the apprenticeship. Eligible apprentices must be hired before January 1, 2008 and must be in a qualifying skilled trade. Qualifying skilled trades include designated construction, industrial and motive power trades, as well as some service trades.
Source: http://www.niagaracanada.com/LabourDemo/labour force/programs.cfm
Targeted Wage Subsidy Program
The Targeted Wage Subsidy Program is a federal program which provides a subsidy of wages and other costs to hire new employees with special needs. The subsidy covers a portion of training costs with negotiated wages and duration, generally 60% of wages for a period of up to 30 weeks. Amounts vary on a case by case basis depending on client circumstances. Eligible workers must be unemployed and currently receiving or have received employment insurance benefits in the last three years. Generally, the contribution ranges between $2000 and $5000 per new employee.
Source: http://www.niagaracanada.com/LabourDemo/labour force/programs.cfm
Ontario Graduate Transition Tax Credit-up to $4000/Employee
The program targets unemployed graduates by encouraging business to provide work opportunities for students who have graduated within the last 3 years from a post-secondary program and are still without full-time employment (in 15 of the last 32 weeks). The program provides a 10-15% refundable tax credit for qualifying expenditures incurred in hiring unemployed Ontario post-secondary graduates. The maximum credit per new hire is up to $4000 (CDN) to offset wage and hiring costs.
Source: http://www.niagaracanada.com/LabourDemo/labour force/programs.cfm
Enhanced Job Placement (Ontario Works)
The Social Assistance and Employment Opportunities Division saves employers time and money by matching the right employee to the right job. The Social Assistance and Employment Opportunities Division is committed to linking job-ready individuals to the local labour market. Through programs and services they can purchase job specific training for new employees or provide employers with funding up to $3000.00 to hire a new employee who may require the additional on-the-job training.
Source: http://www.niagaracanada.com/LabourDemo/labour force/programs.cfm
Job Connect Program – up to $3000/Employee
Assistance with career planning and job-search techniques, work experience placements, and on-the-job training for Ontarian residents, primarily young people, to gain the skill and knowledge to find and keep jobs. The program targets disadvantaged youth by providing them with on-thejob-training opportunities. Once hired, the employer is eligible to receive a training subsidy of up to $3,000 (CDN) per employee hired.
Source: http://www.niagaracanada.com/LabourDemo/labour force/programs.cfm
Part-time Workers
Part-time workers are subject to employment policies as set out by the Ontario Ministry of Labour. Minimum wage levels established in Ontario under the Employment Standards Act are:
• Part-time general hourly rate - $7.75
• Part-time student hourly rate - $7.25 (students under 18 working less than 28 hours a week or during a
school holiday)
Source: http://www.2ontario.com/welcome/bcgo_204.asp
Employee Recruitment
For permanent employees, human resource recruiting firms typically charge one time fees starting in the order of approximately 8% of annual starting wages. Fees for management positions or positions requiring a unique skill set would be higher. Part time employees can be recruited through a number of public and private sector agencies at a reasonable cost.
