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When a large company shuts down in a small town, the entire local economy feels the impact. GM’s decision to close its Oshawa car assembly in 2019 will be no different. As thousands of gainfully employed workers anticipate layoffs next year, the effects will spill beyond the labour market into other economic sectors, including real estate.
While the number of workers projected to lose jobs at the GM’s Oshawa assembly line is around 2,500, the number of those directly and indirectly affected will be several times larger. The integrated supply chains for large-scale manufacturing implies that many more workers employed elsewhere will be affected when the products they produce will not be needed at the assembly line in Oshawa.
The decline in manufacturing has contributed to the emergence of rust belts across America. Large and small towns, like Detroit and Flint in Michigan, became ghost towns as the manufacturing base eroded and well-paying jobs moved away.
Continue to read on: Financial Post