Trustee in Bankruptcy John Adamson Reports Southwestern Ontario Still in Recession

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While the rest of Canada has emerged from recession and is experiencing slow economic growth, Southwestern Ontario remains in recession having never recovered from the world-wide economic downturn, due to local plant closures and job losses, according to Southwestern Ontario trustee in bankruptcy and accountant John Adamson of Adamson & Associates Inc.

Although growth has slowed and Canada no longer leads the world coming out of recession, when Canada’s Minister of Finance Jim Flaherty met with a group of prominent private-sector economists in Ottawa late in October, they told him that they predicted that the modest economic growth Canada has experienced since 2009 will continue and that unless there was a “dramatic shock” in Europe, Canada will remain out of recession. According to John Adamson of Adamson & Associates Inc. (http://www.adamsontrustee.com), a licensed trustee in Bankruptcy, Chartered Insolvency and Restructuring Practitioner (CIRP) and Accountant (CMA), even though Canada as a whole may be recovering from recession, particularly hard hit regions, like Southwestern Ontario, may in fact still be in recession.

“Even though our politicians keep saying that we are out of recession, I have been saying that Southwestern Ontario never really came out of recession. Maybe some places in Canada did, but not here,” says Adamson. “On September 15. 2011, when the Ford Motor Company closed the doors to the St Thomas assembly plant for good, they eliminated over 1,000 direct jobs in a town that had yet to recover from the closure of several other plants before the 2008 recession. The loss of 1,000 well-paying jobs is a devastating blow to Southwestern Ontario because, as economists maintain, one good car assembly plant job supports approximately 7.5 other jobs elsewhere in the economy. So in fact, the actual number of jobs that Southwestern Ontario lost or will lose as a result of the Ford assembly plant closing, is closer to 8,500 when you include the additional 7,500 area jobs that were eliminated as a result of the St Thomas Assembly Plant closure.”

Canada’s overall economic recovery has slowed as Statistics Canada’s latest economic data reveals that Canada lost 54,000 jobs in October, nudging the national jobless rate from 7.1% to 7.3%. While the unemployment rate in London - St. Thomas is only a few percentages higher than the national average, at 9.2% in October, up from 9% in September, the numbers don’t reveal the true situation in Southwestern Ontario according to John Adamson. “Since the Ford workers received severance and termination packages, they do not yet qualify for EI benefits and therefore are not part of the unemployed numbers reported. Combine this with the number of people who have opted for early retirement because they now find themselves unemployable due to age, and the real number of unemployed increases even more. As well, it has to be remembered that most of those who have been able to find work have had to settle for replacement jobs with lower pay,” says Adamson.

“We see the effects of recession and unemployment in our offices every day. People are suffering. The number of families in Southwestern Ontario who are struggling with unpaid bills and mounting debt due to unemployment, or under employment is growing. There is an increase in people who just can’t weather the financial storm any longer, resulting in more people seeking credit counseling, filing for bankruptcy, and filing consumer proposals and Division 1 proposals. Unfortunately, many people here will continue to experience financial challenges and, if many of the economists are correct that the Canadian housing sector is due for a correction, combined with an end to the government stimulus spending, Southwestern Ontario's jobless rate could easily reach double digits,” predicts Adamson.

About Adamson & Associates Inc.: Offering personal and commercial bankruptcy services, credit counseling, Adamson & Associates Inc. Ontario trustees will help you deal with debt problems. In addition to helping people solve debt problems, they also provide receivership liquidation services, and business restructuring and proposals. Working with a team of qualified professionals, John Adamson, a licensed Trustee in Bankruptcy, Chartered Insolvency and Restructuring Practitioner (CIRP) and Accountant (CMA), assists individuals and businesses in financial difficulties in Southwestern Ontario. With offices in St. Thomas, Kitchener/Waterloo, London South, London North, Chatham and Windsor, Adamson & Associates Inc. offers free consultations, evening and weekend appointments and flexible fee payment arrangements. For more information about how Adamson and Associates can help you, call 310-John that’s (519) 310-5646 or visit their website http://www.adamsontrustee.com.

Contact Information:
John Adamson
Adamson & Associates Inc.
142 Centre Street
St Thomas ON N5R 3A3
(519) 310 - 5646
adamsontrustee(at)yahoo(dot)com
http://www.adamsontrustee.com

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