Windsor’s jobless rate may have dropped by more than a full percentage point in a month, but a local labour market expert says the decline came for the wrong reasons.

“We have a shrinking labour force and a lower participation rate that can slow economic growth for us and strain employers who are looking for workers,” said Justin Falconer, CEO of Workforce WindsorEssex. 

Data from Statistics Canada released last week shows Windsor’s unemployment rate fell to 10.2 per cent in July from 11.2 per cent in June, when the city had the highest jobless rate in Canada. Kelowna, B.C. now holds that title.

Falconer says the region’s labour force participation rate fell to 62.5 per cent, the lowest in 17 months. That means 3,000 fewer people were looking for work last month. 

He also noted the working age population, defined as anyone 15 years or older, has declined by 300 people for the first time since 2011.

Falconer says reasons for people not seeking work range from pessimism about the labour market to the summer season, as well as the ongoing U.S. trade dispute affecting manufacturing, transportation and warehousing sectors.

Education and healthcare hit hard

Overall, Windsor-Essex lost 2,100 jobs in July. The steepest decline was in educational services, which saw 3,200 fewer positions in public and private teaching roles.

Falconer says while summer breaks play a role, recent federal caps on international enrolment have prompted colleges and universities to reduce staff.

Healthcare and social assistance also saw significant declines, with 1,400 jobs lost. The construction sector lost 900 jobs. Manufacturing was one of the few bright spots, adding 700 jobs despite U.S. trade disruptions.

Public service jobs going unfilled

Jennifer Van Zetten, the regional vice-president for OPSEU Windsor, confirms that public service positions are going unfilled, particularly in healthcare, education and social services.

“These aren’t the stable, well funded jobs they once were,” she said.

Van Zetten says recent provincial cuts have led to thousands of layoffs in Ontario’s college system, including accessibility counselors and staff in programs such as dental, fine arts and journalism. 

OPSEU estimates nearly 10,000 faculty and staff positions have been cut or are expected to be lost by the end of this year, along with about 600 programs cancelled or suspended.

Bright spot: male youth employment on the rise

The drop in male youth unemployment was particularly significant for Windsor. 

Falconer says the rate fell from 21.9 per cent in June to 16.2 per cent in July, with an increase of 2,200 full time positions for young men. 

Female youth unemployment rose from 11.8 per cent to 14.5 per cent.