TORONTO—Ontario lost 169,800 manufacturing jobs from 2007 to 2017 while neighbouring Michigan added 47,000 above pre-recession levels over the same period, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“Michigan and Ontario have a lot in common, but while Michigan has revived its manufacturing sector since the recession, Ontario manufacturing continues to struggle,” said Ben Eisen, Fraser Institute senior fellow and co-author of The Power of Comprehensive Policy Reform: Lessons for Ontario from Michigan.
While both jurisdictions were hard hit during the 2009 recession, Michigan has enjoyed a much more successful recovery in the past 10 years.
For example, Michigan not only surpassed its pre-recession manufacturing jobs levels while Ontario did not, but from 2011 to 2017, Michigan’s overall annual private-sector employment growth rate (1.9 per cent, on average) outpaced Ontario’s (1.4 per cent, on average). And Michigan has also outperformed Ontario in terms of per-person economic growth over the same seven-year period.
So why the difference in the two jurisdictions post-recession?
While many factors contribute to economic recovery, Michigan did implement several substantial policy reforms starting in 2011, including: simplifying and lowering the state’s corporate income tax system, passing “right-to-work” legislation to increase worker choice, slowing the growth of government spending and reducing state debt.
“In the face of daunting challenges, Michigan took charge of its economic future with an ambitious reform package that has coincided with substantial job growth and a rebirth of manufacturing in the state,” Eisen said.
“Ontario should take note of Michigan’s policy reforms and its successful economic turnaround.”
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Ben Eisen, Senior Fellow, Fraser Institute
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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of 86 think-tanks. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute’s independence, it does not accept grants from governments or contracts for research. Visit fraserinstitute.org.
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TORONTO—Ontario lost 169,800 manufacturing jobs from 2007 to 2017 while neighbouring Michigan added 47,000 above pre-recession levels over the same period, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“Michigan and Ontario have a lot in common, but while Michigan has revived its manufacturing sector since the recession, Ontario manufacturing continues to struggle,” said Ben Eisen, Fraser Institute senior fellow and co-author of The Power of Comprehensive Policy Reform: Lessons for Ontario from Michigan.
