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The Windsor region has the highest unemployment rate in Canada after June’s numbers jumped 1.2 points to 11.8 per cent.
The Windsor region has the highest unemployment rate in Canada after June’s numbers jumped 1.2 points to 11.8 per cent.
There were 21,800 people unemployed in the Windsor census metropolitan area last month, an increase of 2,200 workers off the job and the highest number since June 2020.
The Statistics Canada Labour Force survey numbers for Windsor include Tecumseh, LaSalle, Lakeshore and Amherstburg.
The unemployment rate dropped to 7.8 per cent nationally and 8.4 per cent provincially, declines of .4 and .9 per cent, respectively, but the 231,000 new jobs are all in the category of part-time employment.
Southern Ontario, however, trended in the opposite direction.
The London area saw its unemployment rate increase .3 per cent to 10 per cent with 1,100 people added to the list of unemployed.
The St. Catharines-Niagara region’s unemployment rate jumped .7 per cent to 11.5 per cent, the second-highest figure in the nation.
“The big weight in this number is the Windsor Assembly Plant,” said Workforce WindsorEssex CEO Justin Falconer in explaining Windsor’s numbers.
“The Windsor Assembly Plant has been severely impacted by the microchip shortage and has been essentially closed from the end of March to July. They’re the biggest employer in the region and, if they’re not working, the region is not working.”
Ford Motor Company’s Essex Engine and the Annex Engine plants have also had some down time, but not to the same extent as the Stellantis facility.
Falconer said the other group that is impacting the unemployment rate locally are education workers. The Statistics Canada Labour Force Survey was done the week of June 13-19 just as the education sector begins sending out layoff notices and workers begin filing for summer unemployment benefits.
However, Falconer believes there’s reason for optimism.
“Our new job postings are up dramatically in the last month, an increase over 24 per cent,” Falconer said. “We’ve set records in postings for five or six sectors.
“We have 5,672 active postings from 1,794 employers. Employers are recruiting and looking to scale up. It generally takes four weeks, so hopefully next month the unemployment number begins to come down.”
Falconer said wholesale and retail trade has bounced back strongly and health care and social services have exhibited strong growth.
“There are 23,700 employed in wholesale and retail trade,” Falconer said. “That’s the highest number its been in two years. Those are optimistic numbers.
“Health care and social services have increased in the last four months from about 18,000 to 27,000 people.”
Of the 37 census metropolitan areas in the nation, Ontario had the only four (Windsor, London, Belleville, St. Catharines-Niagara) to have double-digit unemployment rates.
Invest WindsorEssex CEO Stephen Mackenzie feels there’s a connection between Ontario’s cautious approach to re-opening the economy due to COVID-19 concerns and the higher unemployment rates in the province.
“I think that (slower re-opening) is part of it,” Mackenzie said. “The good news is we’re moving to Stage 3 five days early.
“It’s frustrating to see a high number, but I think it’s only temporary with our main industry having supply chain issues and retail and tourism not fully open yet. I’ll be anxious to see July and August’s numbers.”
Mackenzie adds the local economic fundamentals remain strong.
Manufacturers are busy, he said, there’s record new housing starts and continued population growth. More people returned to the labour force in June and the employment participation rate (60.7 per cent) is at its highest level since Feb. 2020.
“The labour force grew by 600 people, which is excellent,” Mackenzie said. “More people are looking for work because they’re more confident of finding a job.”
Mackenzie said the top business issue he’ll be most closely watching in the coming weeks is the border re-opening. The next update from the federal government on the issue will come by July 21.
“The border is really getting desperate,” Mackenzie said.
“It has to be more open than it is. It’s a crisis when you’re a border town.
“Uncertainty is the enemy of everything in business.”
Tesla has announced its profits fell sharply in the first three months of the year to $1.13bn (£910m), compared with $2.51bn in 2023.
It caps a difficult period for the electric vehicle (EV) maker, which – faced with falling sales – has announced thousands of job cuts.
Boss Elon Musk remains bullish about its prospects, telling investors the launch of new models would be brought forward.
Its share price has risen but analysts say it continues to face significant challenges, including from lower-cost rivals.
The company has suffered from falling demand and competition from cheaper Chinese imports which has led its stock price to collapse by 43% over 2024.
Figures for the first quarter of 2024 revealed revenues of $21.3bn, down on analysts’ predictions of just over $22bn.
But the decision by Tesla to bring forward the launch of new models from the second half of 2025 boosted its shares by nearly 12.5% in after-hours trading.
It did not reveal pricing details for the new vehicles.
However Mr Musk made clear he also grander ambitions, touting Tesla’s AI credentials and plans for self-driving vehicles – even going as far as to say considering it to be just a car company was the “wrong framework.”
“If somebody doesn’t believe Tesla is going to solve autonomy I think they should not be an investor,” he said.
Such sentiments have been questioned by analysts though, with Deutsche Bank saying driverless cars face “technological, regulatory and operational challenges.”
Some investors have called for the company to instead focus on releasing a lower price, mass-market EV.
However, Tesla has already been on a charm offensive, trying to win over new customers by dropping its prices in a series of markets in the face of falling sales.
It also said its situation was not unique.
“Global EV sales continue to be under pressure as many carmakers prioritize hybrids over EVs,” it said.
Despite plans to bring forward new models originally planned for next year the firm is cutting its workforce.
Tesla said it would lose 3,332 jobs in California and 2,688 positions in Texas, starting mid-June.
The cuts in Texas represent 12% of Tesla’s total workforce of almost 23,000 in the area where its gigafactory and headquarters are located.
However, Mr Musk sought to downplay the move.
“Tesla has now created over 30,000 manufacturing jobs in California!” he said in a post on his social media platform X, formerly Twitter, on Tuesday.
Another 285 jobs will be lost in New York.
Tesla’s total workforce stood at more than 140,000 late last year, up from around 100,000 at the end of 2021, according to the company’s filings with US regulators.
The car firm is also facing other issues, with a struggle over Mr Musk’s compensation still raging on.
On Wednesday, Tesla asked shareholders to vote for a proposal to accept Mr Musk’s compensation package – once valued at $56bn – which had been rejected by a Delaware judge.
The judge found Tesla’s directors had breached their fiduciary duty to the firm by awarding Mr Musk the pay-out.
Due to the fall in Tesla’s stock value, the compensation package is now estimated to be around $10bn less – but still greater than the GDP of many countries.
In addition, Tesla wants its shareholders to agree to the firm being moved from Delaware to Texas – which Mr Musk called for after the judge rejected his payday.
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Tech stocks rose on Wednesday, outstripping the broader market as investors welcomed Tesla’s (TSLA) cheaper car pledge and waited for the next rush of corporate earnings.
The Nasdaq Composite (^IXIC) rose roughly 0.6%, coming off a sharp closing gain. The S&P 500 (^GSPC) was up 0.2%, continuing a rebound from its longest losing streak of 2024, while the Dow Jones Industrial Average (^DJI) fell 0.1%.
Tesla shares jumped nearly 12% after the EV maker’s vow to speed up the launch of more affordable models eclipsed its quarterly earnings and revenue miss. That cheered up investors worried about growth amid a strategy shift to robotaxis and the planned cancellation of a cheaper model.
The results from the first “Magnificent Seven” to report have intensified the already high hopes for Big Tech earnings, that the megacaps can revive the rally in stocks they powered. The spotlight is now on Meta’s (META) report due after the market close, as the Facebook owner’s shares rose after the Senate voted for a potential ban on rival TikTok. Microsoft (MSFT) and Alphabet (GOOG) next up on Thursday.
Meanwhile, Boeing (BA) reported better than expected first quarter results before the opening bell with a loss per share of $1.13, narrower than the $1.72 estimated by Wall Street. Shares rose about 2% in morning trade.
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MONTREAL — Gildan Activewear Inc. is making changes to its board of directors in an attempt to head off a move by an activist shareholder looking to replace a majority of the board at its annual meeting next month.
U.S. investment firm Browning West wants to replace eight of Gildan’s 12 directors with its own nominees in a move to bring back founder Glenn Chamandy as chief executive.
Gildan, which announced late last year that Chamandy would be replaced by Vince Tyra, said Monday it will replace five members of its board of directors ahead of its annual meeting set for May 28.
It also says current board members Luc Jobin and Chris Shackelton will not run for re-election and that it will recommend shareholders vote for Karen Stuckey and J.P. Towner, who are two of Browning West’s eight nominees.
The new directors who will join the Gildan board on May 1 are Tim Hodgson, Lee Bird, Jane Craighead, Lynn Loewen and Les Viner. They will replace Donald Berg, Maryse Bertrand, Shirley Cunningham, Charles Herington and Craig Leavitt.
Hodgson, who served as chief executive of Goldman Sachs Canada from 2005 to 2010, is expected to replace Berg as chair.
“I look forward to working with this highly qualified board and management team to realize the full benefits of Vince’s ambitious yet realistic plan to drive growth by enhancing the Gildan sustainable growth strategy,” Hodgson said in a statement.
“The refreshed board and I fully believe in Vince and his talented team as well as Gildan’s leading market position and growth prospects.”
Gildan has been embroiled in controversy ever since it announced Chamandy was being replaced by Tyra.
The company has said Chamandy had no credible long-term strategy and had lost the board’s confidence. But several of Gildan’s investors have criticized the company for the move and called for his return.
Those investors include the company’s largest shareholder, Jarislowsky Fraser, as well as Browning West and Turtle Creek Asset Management.
In announcing the board changes, Gildan said it met with shareholders including those who Browning West has counted as supportive.
“Our slate strikes a balance between ensuring the board retains historical continuity during a period of transition and provides fresh perspectives to ensure it continues to serve its important oversight function on behalf of all shareholders,” the company said.
Gildan said last month that it has formed a special committee of independent directors to consider a “non-binding expression of interest” from an unnamed potential purchaser and contact other potential bidders.
But Browning West and Turtle Creek have said the current board cannot be trusted to oversee a sale of the company.
The company said Monday that there continues to be external interest in acquiring the company and the process is ongoing.
This report by The Canadian Press was first published April 22, 2024.
Companies in this story: (TSX:GIL)
The Canadian Press
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