Manufacturing outpaces other sectors as unemployment rate increases

Windsor has the highest unemployment rate again. CTV Windsor’s Bob Bellacicco looks into why.

December’s unemployment rate has the Windsor-area leading the country, at 9.1 per cent.

“I was disappointed to see we were highest unemployment in Canada again,” said Workforce Windsor-Essex CEO Justin Falconer after the unemployment rate rose from 8.7 per cent in November.

Falconer said there is a reason the Windsor-area leads the country, “Population growth is outpacing job gains.”

There were 12,000 new jobs in 2024 and close to 15,000 new working age residents living in the community. There were 10,000 new working age residents in 2023.

“We’re putting all kinds of pressure on job creators and our economy by welcoming all these people in our community. And they’re coming here because we’re getting jobs,” Falconer said.

Population estimates show a growth of over 1,000 people every month in 2024. Realtor Maggie Chen said the Multiple Listing Service has an average of about 423 homes changing hands every month.

“Compared to a thousand people coming to town, so apparently they’re going somewhere not as a buyers, but as renters,” said Chen, broker of Record at LC Platinum Realty.

Falconer said manufacturing saw the biggest employment gains with over 10,000 jobs, “Skilled trades, laboring, processing, material handling. Second biggest sector was transportation, warehousing, and then the third was construction.”

Lido Zuccato, chair of the School of Skilled Trades & Apprenticeship at St. Clair College, said the school is in constant communication with industry and explains how all trades are in demand right now.

“We have program advisory committee meetings every year with every industry and industry is always looking for people, whether it’s industrial, service, or construction,” said Zuccato.

Falconer said in the last three years, the Windsor-area has grown more than it had in the 20 years prior.

“Some of these companies are just really getting started. They’re just starting to hire and start up so, you know, manufacturing jobs are great jobs for our region,” said Falconer.

Not all sectors are bustling. Automotive plants and Original Equipment Manufacturing (OEM) plants didn’t thrive in 2024, according to Laval International President Jonathan Azzopardi.

He is hopeful consumer sentiment gets a boost from lower interest rates and steadying inflation in 2025.

“Should hopefully boost some consumer sentiment and start to buy some vehicles again but from what we understand right now there’s still a lot of inventory, which means automotive guys have lots of cars right now.” said Azzopardi, who said the industry is anxious to see how incoming U.S. president Donald Trump’s threat of tariffs impacts the sector. “These tariffs remind us of the fact that we do have a border. It also reminds us how fragile it really is. One little piece of information makes the whole world go crazy, right? And Trump is one of those people who is not afraid to push the envelope.”