Strong growth forecast for 2022 for the “resilient” economy in the Greater London area

London’s “resilient” economy saw strong economic growth in 2021 despite the COVID-19 pandemic, and 2022 promises “stability” for the city and region, the Conference Board of Canada announced on Friday.

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Greater London’s “resilient” economy achieved strong economic growth in 2021 despite the COVID-19 pandemic and in 2022 promise “Stability” for the city and region, said the Conference Board of Canada on Friday.

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Solid employment numbers for the London area were reported on Friday when Statistics Canada said the unemployment rate was 5.7 percent in December, a sharp drop from 6.4 percent in November.

But that’s the tip of the economic iceberg, said Richard Forbes, chief economist with the Conference Board of Canada.

The London region recorded massive growth in gross domestic product – the value of goods manufactured – of 6.7 percent in 2021 and will remain strong in 2022 with a forecast growth of 3.8 percent.

Usually any growth between two and three percent is considered good.

“London has shown itself to be very resilient in this pandemic. The job numbers there are very high compared to other areas of Ontario. When things eased, London showed the ability to recover, “said Forbes.

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“Companies have learned to adapt, change and grow.”

December marked the sixth straight month of job growth for the London area, including St Thomas, Strathroy-Caradoc and parts of Elgin and Middlesex counties. Office work was at the forefront of the local job parade, and is classified as “professional services” in Statistics Canada figures. 3,600 new jobs were created in December, an increase of 19 percent.

The construction was also solid and created 2,000 jobs in the last month.

Other key areas such as manufacturing, healthcare and education remained unchanged with little growth or decline.

“Given that we were going through a pandemic and all the changes that the business has been through, it has been a year of strong growth. There were all kinds of opportunities for people (looking for work), ”said Deb Mountenay, Executive Director of the Elgin Middlesex Oxford Workforce Planning and Development Board.

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The board office job posting is now 4,632, up from more than 6,000 at the end of November, she said.

In addition to the growth of local businesses, migration is also a factor in employment figures.

“We’re seeing people migrating from other areas and bringing jobs here,” Mountenay said as more employees work from home and leave the Toronto area for a more cost-effective lifestyle.

Although January could prove to be downtime for business due to Omicron’s restrictions, Mountenay agrees with the full year economic growth forecast.

“You will fight your way back. We have heard from employers that expansions are delayed, but we will return when business is normal, whatever is normal. “

As for other economic metrics, the London area’s population grew from 606,000 to 614,000 in 2021, according to Statistics Canada figures, and the total number of employees rose from 351,000 to 386,000.

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The unemployment rate was 5.4 percent through 2021, compared to 7.1 percent in 2020.

In Ontario, too, the unemployment rate fell from 6.4 in November to 6 percent in December.

Nationwide, employment rose by 55,000 in December, while the unemployment rate remained little changed at 5.9 percent.

There were more full-time employees across Canada in December, particularly men aged 25 to 54. Most of the employment growth has been in Ontario. At the national level, the gains were driven by the construction and educational services industries, Statistics Canada said.

In addition, average hourly wages rose 2.7 percent year-on-year in December.

Statistics Canada also collects numbers for those who work from home, and that total number barely changed in December, standing at 23.8 percent. The proportion of Canadians working from home has remained stable since August.

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LONDON AND SURROUNDINGS

Population:

  • 2021: 614,000
  • 2020: 606,000

Worker:

  • 2021: 408,000
  • 2020: 378,000

Employed:

  • 2021: 386,000
  • 2020: 351,000

Unemployed:

  • 2021: 22,000
  • 2020: 27,000

Unemployment rate:

  • 2021: 5.4 percent
  • 2021: 7.1 percent

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