Ontario Economy Growing And Creating Jobs
Increased Output in Manufacturing Drives Growth
The McGuinty government remains focused on jobs and the economy. Despite uncertainty around the world, Ontario's real Gross Domestic Product (GDP) rose 0.7 per cent (2.7 per cent annualized) in the third quarter (July to September 2011).
Provincial GDP has now increased 5.8 per cent over the past nine quarters, putting it one per cent above its pre-recession level. Growth in the third quarter was driven by increases in exports and Ontario's manufacturing output. Modest gains in total investment and consumer spending also contributed.
As of December 2011, employment was 42,300 jobs above the pre-recession peak in September 2008. Ontario's employment has increased by 299,100 net jobs from the recessionary low in May 2009, with full-time employment up by 268,000 net jobs.
The McGuinty government's plan to make Ontario more competitive and create the right climate for job creation is working. The plan -- including Ontario's Tax Plan for Jobs and Growth -- helped stabilize the province's economy by lowering income taxes for families and businesses and introducing tax changes -- including the HST -- to help ensure Ontario's future prosperity.
- 121,300 net new jobs were created in Ontario in 2011, with job growth in the province accounting for more than 45 per cent of all jobs created in Canada in 2011.
- Ontario's unemployment rate has gone down to 7.7 per cent - compared to 9.4 per cent at the height of the global recession in May 2009.
- Since December 2008, retail sales have increased by 15 per cent and are now 4.6 per cent above the pre-recession level of September 2008.
- The transportation equipment sector was the main driver of manufacturing growth, increasing six per cent in the third quarter. Auto production rebounded 6.4 per cent following a 6.6 per cent decline in the second quarter, reflecting supply chain disruptions caused by the tsunami in Japan.
- Forbes.com recently named Ontario a top destination for foreign direct investment in North America and has given the province top rankings in various areas, including job creation, tax reform and health care.
- In 2010, the province attracted a total of 127 Foreign Direct Investment projects, which created more than 11,200 jobs.
“Ontario's economy continues to improve despite global economic uncertainty, positioning the province to face challenges both at home and abroad. Our competitive tax system has helped make Ontario one of the most attractive places for businesses to invest and we continue to draw the attention of investors from around the globe.”