New report shows the impact closures will have on Portage economy
Apr 05, 2022
Today, the MGEU released the Economic and Tax Revenue Impact Assessment: Portage la Prairie’s Public Sector Employment Reductions, highlighting the economic impact of the Manitoba Government’s recent announcements to close several major employers in Portage la Prairie.
“We know that the jobs being lost in the Portage la Prairie area are good, family-supporting jobs that contribute to the local economy,” said MGEU President Kyle Ross. “These job losses hurt families, damage the local economy, and force future generations out of their community. We are calling on the Provincial Government to recommit to investing in the region,” he said.The report outlines the impact that these jobs have on the economy:
- 456 working families will be impacted province-wide if the Government of Manitoba follows through on their plans to cut and close public workplaces in Portage la Prairie.
- 349 of the impacted workers live and work in Portage la Prairie and contribute $26.7 million (GDP) to the economy.
- The jobs being cut generate an additional 60 spinoff jobs in the community.
- These good-quality jobs contribute 7.6 million tax dollars to the Federal/Provincial/Municipal tax base.
The government has announced that the Manitoba Developmental Centre is closing in 2024; Red River College Polytechnic will close its Stevenson Campus in Southport in 2022; and the Agassiz Youth Centre will close in July 2022. Other recent reductions to provincial services in the region include cuts at the Addictions Foundation of Manitoba (AFM) Compass Residential Program, and the Crown Lands Property Agency – Real Estate Division.
“Total employment in Manitoba is enhanced due to the employment in these five public sector organizations. An estimated total of 466.8 person-years of employment (Average Annual Salary $64,600) are associated with these organizations, said report author, Wilf Falk. “For every $1 million in direct Wages, Salaries and Benefits, 17.5 person-years is added to the province’s employment rolls”, he explained.
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