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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 Good Value Life IIISUrance When it comes to life insurance, good value means: • a wide variety of permanent and term life programs including education funds and mortgage insurance • a personalized plan sensitive to your needs and budget • competitive rates Gfanda Gardn.r Good value also means having your 472 Main St., Exeter policies backed by a company you 235-1109 can trust - The Co-operators. We've built our reputation by pro- viding sound financial advice for over 40 years. That's just one of the reasons why we're Canada's leading mutts -tine insurance company with more than 350 offices nationwide. Call The Co- operators for lite insurance. 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