The economy of the province of Ontario

Ontario is the most populated and economically productive province in Canada. It has a population of around 13 million with Toronto (2, 600, 000) and Ottawa (880, 000) being the largest cities. In 2004, Ontario accounted for half of all Canadian manufacturing. Businesses providing services to these cities will be in high demand. Ontario is modernizing like all of Canada. There is more wealth available to start a number of great businesses. Small businesses create the most jobs in Ontario. Ontario has a very strategic location near the United States, close to the Great Lakes and in the more temperate southern climate of Canada.

Northern Ontario is known for its extensive mining resources. There are more than 30 metallic groups represented, including gold, platinum, copper and nickel. In Southern, Ontario, petroleum, salt, gypsum and lime are mined. In 2008, these mining figures were worth $10 billion. The Royal Canadian Mint has an Ottawa location to take advantage of is precious metal resources. The Silver Maples of the Canadian Mint are becoming very popular with a fineness of .9999. This is one of the highest quality coins in the world. Employment in the natural resources, hotels and food services has increased in 2011.

Ontario has the largest numbers of farmers by province. Many individual rural farms are being converted into urban farming and corporate ownership. The automobile industry accounts for the largest portion of the Ontario economy. The Great Lakes are a convenient conduit for car manufacturing. As American manufacturing has declined, it has effected Ontario. Machinery, electronics and plastic are the other primary exports for Ontario. Ontario is becoming more service- oriented. Professional, scientific, technical and utilities have experienced a collapse in employment opportunities.

Financial, insurance and real estate sectors have seen a decline in employment opportunities. While the United States and the United Kingdom have gone through real estate collapses, Canada has not experienced the same. Some economists are worried about a potential housing downturn for Canada. All sectors go through this boom / bust cycle as real estate prices escalate. More loan officers are employed during the up cycle, and the payday loan market in Ontario is in a strong growth phase right now even with the recent crackdowns. These jobs are lost when the land prices go down.

The Toronto Star recorded a slow growth rate of less than 1% for Fourth Quarter 2012. In 2007, Ontario inflation was 1.8%. Unemployment is rising to about 8.5% for the province. Moody’s downgraded Ontario’s economic outlook from stable to negative in December 2011. Renewable and sustainable systems are considered to be the biggest opportunities for job growth.

Government budget cuts may lead to fewer public sector jobs according to the Drummond Report. Lower tax rates for the previous decades in Canada have created a strong foundation for future growth. The balance sheet of Canada is strong. StatCan notes that 98% of Ontario businesses employ fewer than 100 employees. Small companies remain the incubator for the majority of jobs. Examples of these entrepreneurial sectors include bio- technology, renewable energy, software development, media and clothing. High literacy rates are attractive for nascent businesses.