February 4, 2015
In June 2014, the Mowat Centre convened a group of leaders from Ontario’s key industry and sector organizations to talk about what a federal economic agenda for our province might look like (Read the final report, A Federal Economic Agenda in Ontario).
In the lead up to the federal election scheduled for October 2015, our goal was to begin a conversation on the issues and opportunities at stake, and ultimately identify a shared set of recommendations for the federal party or parties that form the next government.
We first tackled a few fundamental questions. What are the key economic challenges the province faces? What can the federal government do to make things better?
We also asked why Ontario needs its own federal economic strategy and why should anyone outside the province care?
What are the key economic challenges the province faces?
For the last several years Ontario has experienced sluggish growth and higher unemployment than the Canadian average. Fewer newcomers have been settling in Ontario and are having a harder time finding gainful employment. Traffic congestion and insufficient transportation infrastructure is stifling the movement of people and goods. The province is just beginning to resurface from a 10-year manufacturing slump that saw more than 300,000 manufacturing jobs disappear.
What can the federal government do to make things better?
While many of the tools to meet these challenges lie in the hands of the Ontario government, municipalities, businesses, and other actors, there are many important policy tools that only the federal government can deploy. These include the selection and settlement of immigrants, infrastructure funding, workforce development policies, and the nature of Canada’s economic relationship with other countries, among others.
Why does Ontario need a federal economic agenda?
The simple fact is that what happens in Ontario’s economy profoundly affects the rest of the country. Despite recent economic challenges, Ontario’s share of national GDP remains nearly twice that of Quebec’s or Alberta’s. Nearly 40 per cent of Canada’s population resides within Ontario’s borders.
Over the years, Ontario has also developed the most diversified economy in the country, one of the most highly-educated populations in the world, the most attractive market for foreign investment in North America, and several thriving ecosystems for innovation and start-ups. In a globalized and competitive world economy, these are essential strengths that will sharpen competitive advantage at both the provincial and national levels.
A strong and prosperous Ontario is in the interest of every Canadian.
In light of the major economic shifts brought on by plummeting oil prices and the falling Canadian dollar, this perspective is even more relevant today than it was six months ago when we began our discussion. In 2014, Ontario’s real GDP was forecast to grow by 1.6 per cent. Most recent estimates have the province leading the nation in 2015 with a forecast 2.8 per cent growth in real GDP. Unemployment is expected to fall and people and businesses are set to earn more.
As Ontario’s economy comes further into focus nationally, now is the opportune time to devise a common vision and strategic plan for the province’s economic future.
To that end, the Mowat Centre and our research partners, Northern Policy Institute and the Institute for Competitiveness and Prosperity, have been hard at work over the last couple of months consulting with a range of stakeholders across the province on what a Federal Economic Agenda for Ontario should look like (check out a video from our most recent consultation in Thunder Bay, here). These discussions will inform our final report, to be released in spring 2015.
A lot has changed in the last six months, and even more will change in the months ahead. The economic shifts that are now favourable to Ontario cannot be counted on indefinitely. However, now is the right time to highlight the most important challenges and opportunities that require federal action. Decisive action will ensure Ontario has a strong economic future that all of Canada can count on.
Read our discussion document and participate in the development of the Federal Economic Agenda for Ontario by sending in your thoughts.
