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New research reveals devastating impacts of Hudak's 100,000 province-wide job cuts in Sudbury

TORONTO, ONTARIO -- (Marketwired) -- 05/22/14 -- New research shows that Hudak's proposed cuts of 100,000 public sector jobs would have devastating effects across the province and lead to skyrocketing unemployment rates for many communities.

Sudbury and other smaller communities outside Toronto and Ottawa that rely disproportionately on public sector jobs to keep their economies moving, will be hit hardest by Hudak's cuts. In Sudbury, the job cuts will lead to an estimated 2,785 job losses. This would drive unemployment up by 3.2 percent to 9.4 percent, based on the latest employment figures.

As Sudbury still waits for a decisive return to pre-recession employment rates of under 6 percent, these job cuts and losses would drive the economy back in the wrong direction.

"This research points to the danger of Hudak's brash schemes. Especially in smaller- and medium-sized communities outside Toronto, economies and peoples' futures will be seriously threatened; it will take years to recover," warned OFL President Sid Ryan.

"Hudak's plan will devastate families and communities that are already struggling," said CUPE Ontario President Fred Hahn. "They'll mean more hospital bed closures and fewer supports in schools for children. They will mean longer wait lists for vital public services such as child care, developmental services and long-term care beds. We need more jobs and public services, not Hudak's cuts."

This research also accounts for the impacts that public sector job losses would have on employment in the private sector. "Local businesses and downtowns will be the first to feel the pain. People without paychecks necessarily watch their pennies carefully, and it is a given that when these workers lose their jobs, they will not be contributing to the local economy as they once did," said Ryan

The research was conducted by CUPE Senior Economist Toby Sanger. The job loss and unemployment numbers were calculated using the most recent detailed data on employment by industry and occupation for Ontario communities from the National Household Survey and the Labour Force Survey, excluding sectors that would not be affected. It also takes into account the spinoff job losses that would be experienced in the private sector using a standard economic jobs multiplier of 0.67.

The summary below documents the estimated impacts of Hudak's proposed 100,000 public service job cuts in towns and cities across Ontario:


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                                                          Resulting         
Town or City                                              Unemployment based
(Census Metropolitan   Estimated Job    Change in         on April 2014     
 Area)                 losses           Unemployment      rates             
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Peterborough           2,057            3.2%              14.8%             
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St Catherines -Niagara 5,301            2.5%              10.7%             
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Windsor                3,964            2.4%              10.8%             
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Thunder Bay            2,460            3.8%              9.6%              
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Ottawa                 11,159           1.9%              8.8%              
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Kingston               3,333            3.8%              10.2%             
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Oshawa                 6,134            2.9%              9.9%              
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Toronto                62,892           1.8%              9.6%              
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Hamilton               10,555           2.6%              9.0%              
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Kitchener - Cambridge -                                                     
 Waterloo              6,142            2.0%              8.8%              
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Guelph                 2,480            3.2%              10.4%             
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London                 7,116            2.7%              10.7%             
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Barrie                 2,547            2.2%              9.4%              
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Greater Sudbury        2,785            3.2%              9.4%              
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