Posted: Tuesday, 24 October 2006

In the midst of an apparently healthy economy, Canada’s manufacturing sector is in a state of deepening crisis. Tens of thousands of jobs have already been lost, and many more layoffs and plant closures are on the way as company after company announces plans for “downsizing” and restructuring to meet “new competitive realities.” This crisis has major long-term implications for Canadian workers and our communities, since the manufacturing sector is a major source of productive, reasonably well-paid jobs.

Manufacturing makes a crucially important contribution to the overall well-being of the Canadian economy and job market. Notwithstanding recent job losses, as of May 2006 this sector directly accounted for 2.1 million jobs, or 12.9% of all jobs. These jobs paid an average $20.68 per hour in May 2006, significantly above the average hourly wage of $18.42 per hour. Almost one in three manufacturing jobs - 30.2% - are union jobs. Unionized manufacturing jobs pay well above average wages, and also generally come with a decent pension and benefit packages.

Higher than average manufacturing wages reflect higher than average productivity. Manufacturing accounts for 12.9% of all jobs, but fully 17.1% of all value-added in the Canadian economy, and 20.1% of all value-added in the business sector. Moreover, manufacturing accounts for a disproportionate share of exports, and supports many jobs in the non-traded sectors of the economy. Inputs to manufacturing account for a large share of activity in business services; manufacturing wages support many jobs in consumer services; and taxes on manufacturing workers support quality public services for all citizens.

Read more - Download the PDF.