Manufacturers cut workforce by 5% in January
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Canadian Manufacturers and Exporters (CME) is responding to news that the manufacturing sector trimmed its workforc...
Canadian Manufacturers and Exporters (CME) is responding to news that the manufacturing sector trimmed its workforce by five per cent in January, citing the need for “immediate action.” The sector has shed nearly 101,000 jobs in the last month.
“Losing five per cent of the total manufacturing workforce in one month is a distressing record that underpins the severity of the crisis facing the industry,” said CME president Jayson Myers. “These staggering numbers reflect temporary layoffs as companies respond to the downturn in orders. Our job is to ensure that those temporary layoffs don’t become permanent.”
The association’s January Business Conditions Survey also found that orders are expected to drop over the next three months, which would cause a further reduction in overall employment. More than 40 per cent of firms say that orders are likely to decrease between January and April, and 42% say that employment levels are likely to fall over the next three months.
“We are seeing a very serious meltdown in customer demand that is ricocheting throughout business sectors connected to our major export market, the U.S.,” said Myers. “Companies are finding it more difficult to access the financing they require to invest in new products and new technologies, grow their businesses and in some cases, simply stay in business.”