Ontario releases the 2024 Fall Economic Statement with big construction commitments

Ontario’s 2024 Fall Economic Statement highlights the Government of Ontario’s commitment to building crucial infrastructure that addresses the needs of a growing province.

The statement, which was released in late October, notes that the government is continuing to invest in key public services without raising taxes or fees and aiming to keep costs down for people and businesses. The government’s plan keeps a path to balance the budget, despite uncertain global economic conditions and others beyond the government’s control, such as the federal carbon tax.

In the first half of 2024, Ontario’s economy continued to grow, despite the challenges of high interest rates and geopolitical uncertainty. While inflation has moderated, the Bank of Canada has begun lowering its policy interest rates and are predicted to weigh down economic growth in the near future. Ontario’s economic growth is predicted to pick up in 2025 and 2026 as interest rates continue to ease.

Following the release of the statement, a construction-specific summary by the Ontario Construction Secretariat (OCS) noted that employment numbers dropped for the third month in a row since August, and labour force participation also decreased for the past two months. It also noted that the unemployment rate remains low.

In terms of employment, it decreased from 599.6 thousand in September to 592.1 thousand in October. The labour force also decreased from 616.5 thousand to 608.4 thousand. The OCS noted that as labour force participation fell more than employment, the unemployment rate decreased, from 2.8 per cent to 2.7 per cent.

When putting these numbers into context, employment and labour force size are still higher than any point before June 2022. The OCS noted that the unemployment rate is relatively low, especially when compared to the overall unemployment rate in Ontario, which sits at 5.2 per cent.