October 30, 2024
Ontario’s Minister of Finance, Peter Bethlenfalvy, released the 2024 Ontario Economic Outlook and Fiscal Review, titled, Building Ontario for You. The Ontario Government is investing in a multitude of industries and building infrastructure across the province. These investments combined with industry forecasting suggest busy upcoming years for Ontario’s unionized ICI construction industry.
The Invest Ontario Fund is receiving an additional $100M, bringing its total budget to $700M, to help Ontario support and secure strategic investments. The government also plans to spend $191B over the next 10 years investing in infrastructure; this includes projects like Highway 413 and the Bradford Bypass, as well as a feasibility study for the potential Highway 401 tunnel. Science and healthcare are receiving significant investments as well, and $23B is to be invested in building new schools and childcare centres over the next 10 years.
Ontario’s Working for Workers initiative is investing up to an additional $260M in the Skills Development Fund (SDF), bringing the total to $1.4B. The fund aims to attract, train, and retrain workers in the construction, manufacturing, and health care sector. The fund invests in state-of-the-art training facilities like the brand new LiUNA 183 Training Centre. The province also announced it will be partnering with First Nations, unions, and local employers in Northern Ontario to train over 36,000 workers to access the critical resources that the land has to offer.
To encourage more Ontarians to work in the skilled trades, Ontario is investing $16.5M annually over the next 3 years to support a variety of programs, including the Skilled Trades Career Fair Level Up! To compound those efforts in attracting young people into the skilled trades, Ontario is also launching an online job-matching site for potential apprentices or journeypersons. The site will let employers share opportunities with potential workers and help potential apprentices find sponsors and training. To attract more women into the skilled trades, as well as other in-demand sectors, the government is investing up to $26.7M over three years to help low-income women gain the skills and training needed to gain employment. The government also indicated that they are planning on amending the Construction Act to implement specific recommendations from the industry.
The released document also touched upon economic indicators and finances. The economy is projected to cool to 0.9% growth in 2024. As interest rates continue to ease, growth is expected to increase in 2025 and 2026 at 1.7% and 2.3%, respectively. Employment growth is expected to dip down to 1.4% in 2024 before rising to 1.5% in 2025. Finally, the provincial deficit is projected to be $6.6B in 2024-25, $1.5B in 2025-26, and then reach a surplus of $0.9B in 2026-27. Compared to the 2024 Budget, the projected balances have improved due to a $6.9B increase in anticipated revenues. An increase that occurred due to an upward revision of the 2024 economic forecast, and higher revenues from changes in the capital gain inclusion rate.
For those who wish to read the full document, click here to head to the Ontario Government website.
