Institutional permit value experiences reversal from record high: OCS

A recent economic report by the Ontario Construction Secretariat (OCS) from early November revealed that employment and labour force decreased, while the unemployment rate increased from 3.7 per cent to 4.3 per cent.

According to the report, Total ICI permit value decreased by roughly half, as institutional permit value reverted back to more normal levels when comparing August to September.

From September to October, employment decreased from 606.8 thousand to 600.5 thousand, according to the report. The labour force decreased from 630.1 thousand to 627.2 thousand.

In terms of unemployment rate, the report noted that it increased from 3.7 per cent to 4.3 per cent. While it is higher than usual for October, it was lower than the overall Ontario unemployment rate of 5.9 per cent. This was unchanged from the previous month’s overall unemployment rate, according to the report.

From August to September, total ICI permit value dropped by nearly 50 per cent ($3.11 billion – $1.55 billion). The report noted that this was almost entirely due to the decrease in the institutional sector, where permit value plummeted from $1.72 billion in August to $213 million in September. Commercial permit value decreased 17.7 per cent and industrial permit value increased 21.5 per cent.

Total ICI permit value was also up 21.9 per cent between Q2 and Q3 2023. The report noted that most of this increase once again came from the massive institutional sector gain from August.

According to the report, overall year-to-date ICI permit value was up 27.6 per cent compared to the same time last year. As with August, the largest percentage increase was in the institutional sector at 69.5 per cent.