Times Advocate, 1991-03-13, Page 24011.0
Page 2
Times -Advocate, -March 13, 1991
MisleaGlrg data
Don't be fooled by low county unemployment stats
By Raz Lewis
EXETER -While statistics re-
leased by the Canada Employment
Centre and Stats -Canada seem to
dispel proof of high unemploy-
ment rates in Huron County, the
sparse job boards speak loudly.
While Canada Employment lasts
the unemployment rate at seven
percent, the reason may be linked
more closely to misinterpreted
data than economic stability.
The Canada Employment Centre
and Stats -Canada produce separate
analysis, which in many ways cor-
relate. However, much emphasis
is placed upon the relationship be-
tween rate of unemployment and
the number of people drawing mu-
nicipal welfare. Historically, there
is a strong linkage between the
two. If one goes up so does the
other.
In larger urban centres, sample
sizes are ample enough to elimi-
nate the exceptions to the rule.
Larger areas are, therefore, much
more confident with their numbers
In Huron County, it is very mis-
leading to use the rate of unem-
ployment as a record of economic
well-being or health, because the
economy is not developed to the
extent of a large urban counter-
part.
According to John Gilespie,
manager of both Exeter and Code -
rich Canada Employment Centres,
the use of unemployment rates to
measure economic health is not
really reliable.
"You don't get a lot of unem-
ployed people, says Gilespie, "be-
cause the jobs were never there to
create the unemployment in the
fust place."
What happens is people look at
the rate of unemployment for Hu-.
ron and notice that it's one of the
lowest in all of Canada. Based
upon that they assume that things
must be great here.
As far as the industrial. sector is
concerned, Huron County is domi-
nated by agriculttire. There has
been a manufacturing sector, but it
has never represented a significant
percentage of the total economy.
"We are completely dominated
by agriculture, which does not
lend itself to creating a lot of
jobs," says Gilespie. "Therefore, it
does not lend itself to having a lot
of people unemployed."
For example, take a look at the
number of people who move out of
the county when they finish school
as opposed to the people moving
in, observes Gilespie. Those who
enter the area are, fix the most part,
aging. Not many people are mov-
ing into Huron seeking jobs.
London currently boasts a low
unemployment rate because it has
such a diverse and balanced level
of economic activity. It's represen-
tative of a very wide range of com-
munities, so it insulates itself.
As for manufacturing in this area,
Gilespie notes that it will probably
get worse before it gets better.
"You're looking at a major re-
structuring of the manufacturing
base in Huron County," confirms
Gilespie.
Traditionally, it was based on
low scaled, labour-intensive opera-
tions. The economic logic for that
type of manufacturing is rapidly
disappearing; not only from Huron
County, but from Canada and the
United States. Companies are go -
"...many who are
laid off expect to
be called back,
so that's a good
sign."
ung to third -world countries.
The kind of manufacturing that is
growing demands inte 'e capital
and high skill, but very few jobs
and very high productivity per per-
son.
Companies are no longer looking
at only the domestic market as the
target for manufacturing. instead,
they're looking at the North Ameri-
can market and, in many cases, the
world market.
"Lo king at firms in Huron
County, those that focus on produc-
ing for the domestic Market, using
a lot of low paying , low skilled la-
bour, are at risk, says Gilespie
"Firms like that are going to have
to change or go out of busutess.
He also speculates that at risk are
American based companies located
in Canada, which have been set up
to avoid having to pay duty cross-
ing the border. As the duty comes
off, they become vulnerable. If
they can produce their product
head-to-head cheaper than they can
in the US, they are okay. But if
they can produce cheaper in the
States, free trade's elimination of
the duty no longer gives the compa-
ny a reason to be here.
Gilespie also points out that with
the Canadian dollar high, and the
cost of doing business higher here
because of minimum wage laws
and statutory fringe benefits, firms
with a high labour component are
looking south of the border.
Similarily, in the US, companies
are moving to places such as Mexi-
co or the Philippines. Examine the
products which demand labour-
mtensive assembly work and see
where they are 'manufactured. It
tends not to be either Canada or the
US.
In Huron, of course, there is a tre-
mendous seasonal fluctuation with
availability of jobs. Traditionally,
the unemployment rate doubles at
this time of year because agricul-
lure is slow, construction is slow,
and for whatever reasons, manufac-
turing tends not to hire until spring.
Manufacturing is seasonal as
well, because so much is geared to
supply the agricultural and con-
struction markets.
According to Laura Overholt at
the Canada Employment Centre, it
is very normal for the area to see
many seasonal layoffs beginning
around November. Agriculture and
manufacturing are the hardest hit
this year, while construction seems
to be hanging in, partly due to low
interest rates and a mild winter.
A complete analysis of the unem-
plo ment picture of Huron County
is foorthcoming, but for the moment
Overholt speculates that there isn't
a significant increase in unemploy-
ment over this time last year. Un-
fortunately, that's only comforting
if you consider 1990 to have been
good, which many don't.
Looking towards the future,
Overholt sees manufacturing as the
toughest component to predict.
"The word recession has placed
such a negative component on
everything," says Overholt. "B4it
many who are laidoff expect to be
recalled, so that's a good sign."
The recession has taken its toll on
the Employment Centres as well,
with many running understaffed.
Fortunately, new ways of handling
caseloads have been devised to
help alleviate some of the burden.
For example, group seminars are
held to answer general unemploy-
ment questions by volume.
As for unemployment insurance
claims, applicants are encouraged
to file right away and be aware
that they require a record of em-
ployment. You can file without
one, but it speeds up the start date
of the claim.
Overholt also notes that there is
a misinterpretation of lingo by ap-
plicants when it comes to filing
date and the actual receipt of bene-
fits.
"There is a waiting period, but
there is also a processing period,"
says Overholt.
The waiting period is about two
weeks and starts at the beginning
of a claim.
Processing time refers to the
time it takes for a person to get
cards in his hand and follow up
with money; about four to six
weeks.
These days, however, any type
of mistake leads to major delays
because it means someone in Lon-
don must get in contact with indi-
viduals and employers, which is
often difficult.
Canada Employment has also set
up a special toll-free telephone line
to act as an inquiries unit for un-
employment insurance. Those
with questions can find immediate
service by dialing 1-800-465-
4270.
Gibbs'
beach
deal
Continued from front page
enue from the parking lot. Council
and the villagers alike realize
while he may be making a profit,
it's Grand Bend that is dishing out
the money to maintain the beach.
"I can't believe we would ques-
tion Archie Gibbs. Let him run his
own beach and see how much reve-
nue he collects, said Gord Wil -
hams.
In regards to parking, councillor
Bill Uniac said there will be alter-
natives to using the beach lot. Uni-
ac said there will be about 300
spots available near the Legion and
signs have already been ordered.
There was some criticism in
which the way the media has han-
dled the Gibbs beach issue. Uniac
said he would like to see more posi-
tive publicity ,and let it be known
Gibbs' portion of the beach is a
small one.
He said Grand Bend has got
1,800 feet of beach from the main
street to Oakwood and past the riv-'
er there is 1,300 feet.
"There's a lot of beach in Grand
Bend and there's room for every-
one," said Uniac.
Gibbs' beach, however, is the
most central and most easily ac-
cessible of all the beach areas.
"We'd like to think we can pro-
mote the rest of the beach and
make it the finest, cleanest beach in
the world," said Woodlcy.
No sympathy
for night
shift Hensall
parking
HENSALL - While Queensway
Nursing Home night shift employ-
ees are complaining their cars are
being ticketed for being parked on
the street overnight, village council
suggested Monday evening they
complain to their administrator for
a lack of employee parking.
The employees complained about
the tickets, noting that the munici-
pal parking lot is often full at that
time of night. Council, neverthe-
less, noted that the original agree-
ment for the expansion of the rest
home included a plan to create new
parking spaces on a lot purchased
by the administration.
"We've got to get the streets
clear," said councillor Peter Groot
of the need to keep the town
cleared of snow. "We could get
mean and enforce it all year. As it
is it's only four months."
Council pointed out it is not their
responsibility to provide parking
for business employees.
Correction
An article which appeared last
week in the Times Advocate
stated the Huron County Board
of Education has developed an
"in county" mileage rate of 27
cents/km. In fact the 1991
HCBE revision establishes a
split rate of 22 centsjkm for
long distances and 27 cents/an
for in -county travel! The T -A
regrets any confusion this error
may have caused.
Helping out - Mark Cronyn and Gary Giles put on air packs and gas
masks as they went to help control a fire at Cook's grain elevators
south of Exeter on Wednesday morning. The two Stephen TownshIp,
firefighters along with those from the Exeter department were called
to the scene at about 10:20 a.m. Cause or amount of damage is.
yet to be determined.
County budget
up 8.3 percent
GODERICH - Huron County
residents will see an increase of
8.3 percent in their mill rate as the
1991 budget was finalized Thurs-
day afternoon in Goderich. The in-
crease means each household will
pay about an additional $16.
Councillors debated the new
budget and asked several ques-
tions including the subject of re-
serve funds including an increase
in the Huronview reserve of
$500,000.
"This council took a pretty bold
stand two years ago when it estab-
lished the I-Iuronview and waste
management reserve funds," said
clerk -treasurer Nigel Bellchamber.
,t , The waste Management budget
was increased by a total of 18.19
percent.
Bellchamber said that last fall,
department heads sat down and
did a five-year financial forecast
and figured the 1991 budget would
have to be increased by 20 percent.
But, the tax base has increased by
two percent and the county has opt-
ed not to have a capital works re-
serve fund. Last year the fund was
$320,000.
"The executive committee felt
that could be forgone for a year,"
said Bellchamber.
Also, service levels, unless in-
creases are mandatory, have either
been frozen at 1990 levels or cut.
Exeter reeve Bill Mickle said the
county shouldn't be too pleased
with the budget being cut from 20
to 8.3 percent.
"I'm not happy with an 8.3 per-
cent increase. I don't think it's acc-
ceptable." he added.
Health Unit won't do Inspectlons
of Grand Bend restaurants
GRAND BEND - ,Unless contacted, the Lambton
County Health Unit will not be conducing routine in-
spections on food outlets in Grand Bend this summer.
Wednesday night, Clayton Wardell of the Health
Unit, said due to a very limited number of inspectors,
the local outlets will only be inspected unless some-
one complains.
"Last summer we were without inspection coverage
in the area for two months. I'm not pleased with
what's happened, but it's beyond our control," said
Wardell.
"We may be in a more severe problem than last
summer."
Councillor 13111 Uniac said last summer there had
been some inquires about inspections.
"There's places making a bad reputation on the res-
taurant business," said Uniac.
Wardell said the Health Unit has so few inspectors,
that throughout the county they are presently doing
demand calls only.
He said he would like to be able to conduct month-
ly inspections but it won't be possible.
"The only suggestion I have is complain. Then
well respond, we have to, that's the law, said War-
dell.
Uniac asked, that when an inspector does come to
the village, he contacts the municipal office and give
a brief report. Wardell said this would be possible.
Reeve Bruce Woodley told Wardell a couple of es-
tablishements had set up barbeques last summer and
asked if this was permitted.
"Batbeques have to be incorporated within a busi-
ness atmo�ere," said Wardell who said one issue
was ordered last year to stop the b.rbequeing.
Uniac asked when does the Health Unit come in
arid condemn residences. He said there are rental
units in the village which, in his opinion, were not
liveable.
"Conditions have to be very bad before we do
something," said Wardell.
He noted the regulations under the local property
standards by-law would take priorty.
Stephen wants budget restraint
GODERICH - Huron County
decided Thursday morning it's bet-
ter to take care of its own busi-
ness, rather than worrying about
that of others.
At its regular meeting, in which
the 1991 budget was thie main top-
ic, councillors decided against
supporting a resolution made by
Stephen Township.
'laic township sent a letter to the
two Huron school boards request-
ing they keep their budget increas-
es to five percent.
Usborne Township's Gerry
Prout felt the county should sup-
port the Stephen resolution.
"I see nothing wrong with send-
ing a letter of concern about the
higher cost of education," said
Prout.
However, both Bill Mickle of Ex-
eter and Tom Cunningham of Hui -
lett Township, felt the county
should be taking care of their own
budget worying about the
9011001 ,
"We're going to look pretty fool-
ish if their budget cornea under
ours," said Cunningham.
The county budget was brought
before council on Thursday with a
proposed increase in the mill rate of
8 3 percent.
"I don't think we should be talk-
ing to someone else, we should get
our own house in order," said Cun-
ningham.
"If we agree the school board be
five• it p � be five per -
.1
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