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Labour market impacts in a tariff war with America

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Key Takeaway
Tariffs are the latest factor expected to influence the labour market. Understanding how they will affect local labour markets and economies is crucial.

 

Tariffs are the latest influence on the future of work in Canada and beyond. Labour market experts and economists across the country have responded by working on ways to understand how tariffs might affect their local labour markets and economies. 

The Durham Workforce Authority, a non-profit organization that works to provide reliable research focused on local LMI, undertook research to understand the potential impacts of tariffs in the Durham region (east of Toronto, Ontario). Its analysis looks at several key economic metrics: 

  • the imports and exports for key cities and towns in the region 
  • regional exports by industry (using North American Industry Classification System, or NAICS, codes) 
  • the unemployment rate and total numbers of employed people in several core NAICS 

By combining these metrics, the authors highlight the importance of multi-dimensional LMI to assess the effects of macroeconomic shocks. No single dataset can capture the full picture. Understanding the local impacts of trade policies requires integrating several data types and applying rigorous research methods. 

The analysis also reinforces the fact that municipalities should not act alone. The Durham Workforce Authority emphasizes the need for collaboration with other municipal agencies and government bodies—as well as engagement with other levels of government in Canada—for an effective and coherent strategy.  

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