The positive changes registered in Peel's economy in 2010 and 2011 remained a feature of changes in Peel during the first quarter of 2012.
In the labour market quarterly average employment continued to increase, up 4 per cent relative to the first quarter of 2011.
However, the number of persons entering Peel's labour market increased at a faster pace of 6.6 per cent resulting in an increase in the average quarterly unemployment rate to 10.3 per cent, up from 8 per cent in the first quarter of 2011.
In the construction sector, indications are that changes in intentions as measured by the change in the value of total building permits for the first two months of 2012 was above the level attained in the similar period of 2011.
The number of housing starts fell during January – March 2012, but was more indicative of the maturity of the City of Mississauga where there is now reduced capacity for growth.
As the Canadian and Ontario economies continue to recover from the recent recession, changes in Peel are expected to remain positive.
Notwithstanding this, Peel is expected to continue to face a number of challenges.
The global economic recovery remains fragile, with the weight of the European debt and financial challenges, and the slow down in growth in developing countries, weighing heavily of growth prospects globally.
Given the high dependence of a large part of Peel's economy on trade related activities, continued fragilities in the global economy are likely to constrain the level of growth in the short to medium term.
In the domestic economy, the thrust towards the reduction of deficit at the provincial and national levels may also act as a constraint to short term economic growth.
However, a strengthening of fiscal positions in the short run will provide the foundation for long term growth and development.
In addition, general macro-economic conditions in the Canadian economy remain favourable to growth, chief among which is the maintenance of relatively low interest rates.
The Canadian economy continues to benefit from relatively low interest rates which should continue for most of 2012, providing the conditions favourable for sustained growth in consumer demand as well as capital investment, and provide the basis for growth in Canadian output as well as changes at the local levels, including Peel.
At the local level, positive attributes in Peel will also continue to be the bedrock on which long term growth will be achieved.
These attributes include:
Location: Peel's economy is located in the Greater Toronto Area (GTA), one of the largest economic centers in Canada. This allows Peel's residents and businesses to benefit not only from economic activities within Peel but from activities in the broader GTA.
Close proximity to the US: Peel is also located in close proximity to the large US market, reachable from Peel by way of road, rail or air transportation.
Its highly developed transportation infrastructure: Peel is serviced by a highly developed series of transportation networks comprising five major highways and three intermodal railway terminals as well as Pearson International Airport, one of Canada's busiest. These allow for easy access to major economic centers, including the Unites States.
Attractive to residents and businesses: With its location and infrastructure advantage, Peel has been, and will continue to be, an attractive destination for both residents and businesses. Reflecting this,Peel is expected to continue to register growth in population, households, and employment in the medium to long run. Peel's population is expected to reach 1.6 million persons by 2031. Employment generated in Peel is also expected to increase over the long term, to reach 869,000 by 2031.
Part 3: Region of Peel
