LESSONS FOR ONTARIO

1) No region excels in all indices.

2) Ontario performs well on most indices, mainly social ones, but needs to improve on the economic indices of jobs and income.

3)

Ontario has the greatest opportunity to boost productivity by:

GDP is still a useful measure to demonstrate the magnitude of the economic prosperity gap.

Phasing out the small business deduction to incentivizefirm growth.

Increasing the availability and affordability of child care to increase the female labour force participation rate.

Strengthening the alignment between employers and post-secondary institutions to close the skills gap and improve R&D performance.

Increasing ICT adoption by SMEs to enhance productivity.

RECOMMENDATIONS

27

LOOKINGBEYOND GDPMeasuring prosperity in Ontario

HIGHLIGHTS of WORKING PAPEROCTOBER 2016

105 St. George StreetToronto, ON M5S 3E6Telephone: (416) 946-7300Fax: (416) 946-7606

www.competeprosper.ca

linkedin.com/company/institute-for-competitiveness-&-prosperity

twitter.com/Institute_ICP

Ontario has ranked in near-last place compared to its peer jurisdictions on GDP per capita since 2001.

Economic measures are only one aspect of prosperity and GDP has its drawbacks:

The Institute expanded its lens to include 11aspects of prosperity as measured in the OECD's Regional Well-Being Database.

9th place

Michigan

7th place

Netherlands

3rd place

Wisconsin

10th place

Tennessee

8th place

Ohio

2nd place

BritishColumbia

5th place

OntarioAustralia

1st place 11th place

Indiana

6th place

Québec

4th place

Sweden

ONTARIO RANKS 5TH ON THE OVERALL REGIONAL WELL-BEING INDEX

ONTARIO’S PROSPERITY GAP

HIGHEST

13TH

16OUT OF

PEERS

LOWEST

15TH

16OUT OF

PEERS

Includes undesirable activity, such as accidentsand war that contribute positively to GDP.

Does not capture non-market based activities(e.g., housework).

Hard to capture value of services.

ENVIRONMENT

1.82.8

8.5

13.6 23.7

Australia Iceland

ONTARIO

Netherlands Korea

Air pollution(level of PM 2.5): 8.5

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

ACCESS TO SERVICES

98.5%95.0%

84.2%

72.2% 33.7%

Netherlands Korea

ONTARIO

Tennessee Mexico

Households withbroadband access

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

HEALTH

83.0YRS82.3YRS

6.9 81.8YRS

76.3YRS 75.7YRS

6.06.5

10.1 11.5

BritishColumia Japan

ONTARIO

Tennessee Hungary

Mortality rate (per 1,000 pop.)Life expectancy

ON

TAR

IO PE

RFO

RM

S W

ELL

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

SAFETY

0.30.9

1.2

6.4 19.5

Netherlands Iceland

ONTARIO

Michigan Mexico

Homicide rate (per 100,000 pop.)

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

EDUCATION

95.0%92.0%

90.5%

75.9% 40.0%

Wisconsin Czech Republic

ONTARIO

Netherlands Mexico &Turkey

Workforce with at leastsecondary education

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

CIVIC ENGAGEMENT

93.9%93.9%

68.3%

55.7% 43.4%

Australia Australia

ONTARIO

Tennessee Slovak Republic

Voter turnout

ON

TAR

IO PE

RFO

RM

S W

ELL

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

HOUSING

2.42.7

2.4

1.7 1.0

Wisconsin Canada & USA

ONTARIO

Sweden Turkey, Poland& Mexico

Rooms perperson

PEERLAGGARD

PEERLEADER

OECDLAGGARDS

OECDLEADERS

ON

TAR

IO PE

RFO

RM

S AV

ER

AG

E

LIFE SATISFACTION

7.77.6

7.3

6.8 5.0

British Columbia Denmark

ONTARIO

Ohio Hungary

Self assessment of lifesatisfaction (1–10)

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

INCOME

$37,300$44,300

$27,300

$21,600 $3,400

Wisconsin USA

ONTARIO

Netherlands Mexico

Disposable incomeper capita (C$2010)

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

JOBS

E 82.9%E 76.7%

7.3% 67.3%

E 66.2%E 50.5%

U 3.4%U 5.6%

U 7.7%U 26.2%

Wisconsin Japan

ONTARIO

Québec Greece

Unemployment rateEmployment rate

ON

TAR

IO PE

RFO

RM

S PO

OR

LY

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

COMMUNITY

96.9%97.2%

92.0%

91.0% 76.0%

Michigan Iceland

ONTARIO

Indiana Turkey

Perceived socialnetwork support

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

UNEMPLOYMENTRATE (U)

EMPLOYMENTRATE (E)

MORTALITYRATE

LIFEEXPECTANCY

9.0

8.5

9.5

8.0

7.5

7.0

6.5

6.0

GDP per capita (000 US$ 2015)

Index of Well-Being

Well-Developed OECD countries

40 50 60 $70

Australia

Canada

Netherlands

United States

Sweden

For well-developed countries like Canada, improvements in GDP do not guarantee improvements in well-being.

LESSONS FOR ONTARIO

1) No region excels in all indices.

2) Ontario performs well on most indices, mainly social ones, but needs to improve on the economic indices of jobs and income.

3)

Ontario has the greatest opportunity to boost productivity by:

GDP is still a useful measure to demonstrate the magnitude of the economic prosperity gap.

Phasing out the small business deduction to incentivizefirm growth.

Increasing the availability and affordability of child care to increase the female labour force participation rate.

Strengthening the alignment between employers and post-secondary institutions to close the skills gap and improve R&D performance.

Increasing ICT adoption by SMEs to enhance productivity.

RECOMMENDATIONS

27

LOOKINGBEYOND GDPMeasuring prosperity in Ontario

HIGHLIGHTS of WORKING PAPEROCTOBER 2016

105 St. George StreetToronto, ON M5S 3E6Telephone: (416) 946-7300Fax: (416) 946-7606

www.competeprosper.ca

linkedin.com/company/institute-for-competitiveness-&-prosperity

twitter.com/Institute_ICP

Ontario has ranked in near-last place compared to its peer jurisdictions on GDP per capita since 2001.

Economic measures are only one aspect of prosperity and GDP has its drawbacks:

The Institute expanded its lens to include 11aspects of prosperity as measured in the OECD's Regional Well-Being Database.

9th place

Michigan

7th place

Netherlands

3rd place

Wisconsin

10th place

Tennessee

8th place

Ohio

2nd place

BritishColumbia

5th place

OntarioAustralia

1st place 11th place

Indiana

6th place

Québec

4th place

Sweden

ONTARIO RANKS 5TH ON THE OVERALL REGIONAL WELL-BEING INDEX

ONTARIO’S PROSPERITY GAP

HIGHEST

13TH

16OUT OF

PEERS

LOWEST

15TH

16OUT OF

PEERS

Includes undesirable activity, such as accidentsand war that contribute positively to GDP.

Does not capture non-market based activities(e.g., housework).

Hard to capture value of services.

ENVIRONMENT

1.82.8

8.5

13.6 23.7

Australia Iceland

ONTARIO

Netherlands Korea

Air pollution(level of PM 2.5): 8.5

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

ACCESS TO SERVICES

98.5%95.0%

84.2%

72.2% 33.7%

Netherlands Korea

ONTARIO

Tennessee Mexico

Households withbroadband access

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

HEALTH

83.0YRS82.3YRS

6.9 81.8YRS

76.3YRS 75.7YRS

6.06.5

10.1 11.5

BritishColumia Japan

ONTARIO

Tennessee Hungary

Mortality rate (per 1,000 pop.)Life expectancy

ON

TAR

IO PE

RFO

RM

S W

ELL

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

SAFETY

0.30.9

1.2

6.4 19.5

Netherlands Iceland

ONTARIO

Michigan Mexico

Homicide rate (per 100,000 pop.)

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

EDUCATION

95.0%92.0%

90.5%

75.9% 40.0%

Wisconsin Czech Republic

ONTARIO

Netherlands Mexico &Turkey

Workforce with at leastsecondary education

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

CIVIC ENGAGEMENT

93.9%93.9%

68.3%

55.7% 43.4%

Australia Australia

ONTARIO

Tennessee Slovak Republic

Voter turnout

ON

TAR

IO PE

RFO

RM

S W

ELL

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

HOUSING

2.42.7

2.4

1.7 1.0

Wisconsin Canada & USA

ONTARIO

Sweden Turkey, Poland& Mexico

Rooms perperson

PEERLAGGARD

PEERLEADER

OECDLAGGARDS

OECDLEADERS

ON

TAR

IO PE

RFO

RM

S AV

ER

AG

E

LIFE SATISFACTION

7.77.6

7.3

6.8 5.0

British Columbia Denmark

ONTARIO

Ohio Hungary

Self assessment of lifesatisfaction (1–10)

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

INCOME

$37,300$44,300

$27,300

$21,600 $3,400

Wisconsin USA

ONTARIO

Netherlands Mexico

Disposable incomeper capita (C$2010)

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

JOBS

E 82.9%E 76.7%

7.3% 67.3%

E 66.2%E 50.5%

U 3.4%U 5.6%

U 7.7%U 26.2%

Wisconsin Japan

ONTARIO

Québec Greece

Unemployment rateEmployment rate

ON

TAR

IO PE

RFO

RM

S PO

OR

LY

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

COMMUNITY

96.9%97.2%

92.0%

91.0% 76.0%

Michigan Iceland

ONTARIO

Indiana Turkey

Perceived socialnetwork support

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

UNEMPLOYMENTRATE (U)

EMPLOYMENTRATE (E)

MORTALITYRATE

LIFEEXPECTANCY

9.0

8.5

9.5

8.0

7.5

7.0

6.5

6.0

GDP per capita (000 US$ 2015)

Index of Well-Being

Well-Developed OECD countries

40 50 60 $70

Australia

Canada

Netherlands

United States

Sweden

For well-developed countries like Canada, improvements in GDP do not guarantee improvements in well-being.

Ontario has ranked in near-last place compared to its peer jurisdictions on GDP per capita since 2001.

Economic measures are only one aspect of prosperity and GDP has its drawbacks:

The Institute expanded its lens to include 11aspects of prosperity as measured in the OECD's Regional Well-Being Database.

9th place

Michigan

7th place

Netherlands

3rd place

Wisconsin

10th place

Tennessee

8th place

Ohio

2nd place

BritishColumbia

5th place

OntarioAustralia

1st place 11th place

Indiana

6th place

Québec

4th place

Sweden

ONTARIO RANKS 5TH ON THE OVERALL REGIONAL WELL-BEING INDEX

ONTARIO’S PROSPERITY GAP

HIGHEST

13TH

16OUT OF

PEERS

LOWEST

15TH

16OUT OF

PEERS

Includes undesirable activity, such as accidentsand war that contribute positively to GDP.

Does not capture non-market based activities(e.g., housework).

Hard to capture value of services.

ENVIRONMENT

1.82.8

8.5

13.6 23.7

Australia Iceland

ONTARIO

Netherlands Korea

Air pollution(level of PM 2.5): 8.5

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

ACCESS TO SERVICES

98.5%95.0%

84.2%

72.2% 33.7%

Netherlands Korea

ONTARIO

Tennessee Mexico

Households withbroadband access

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

HEALTH

83.0YRS82.3YRS

6.9 81.8YRS

76.3YRS 75.7YRS

6.06.5

10.1 11.5

BritishColumia Japan

ONTARIO

Tennessee Hungary

Mortality rate (per 1,000 pop.)Life expectancy

ON

TAR

IO PE

RFO

RM

S W

ELL

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

SAFETY

0.30.9

1.2

6.4 19.5

Netherlands Iceland

ONTARIO

Michigan Mexico

Homicide rate (per 100,000 pop.)

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

EDUCATION

95.0%92.0%

90.5%

75.9% 40.0%

Wisconsin Czech Republic

ONTARIO

Netherlands Mexico &Turkey

Workforce with at leastsecondary education

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

CIVIC ENGAGEMENT

93.9%93.9%

68.3%

55.7% 43.4%

Australia Australia

ONTARIO

Tennessee Slovak Republic

Voter turnout

ON

TAR

IO PE

RFO

RM

S W

ELL

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

HOUSING

2.42.7

2.4

1.7 1.0

Wisconsin Canada & USA

ONTARIO

Sweden Turkey, Poland& Mexico

Rooms perperson

PEERLAGGARD

PEERLEADER

OECDLAGGARDS

OECDLEADERS

ON

TAR

IO PE

RFO

RM

S AV

ER

AG

E

LIFE SATISFACTION

7.77.6

7.3

6.8 5.0

British Columbia Denmark

ONTARIO

Ohio Hungary

Self assessment of lifesatisfaction (1–10)

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

INCOME

$37,300$44,300

$27,300

$21,600 $3,400

Wisconsin USA

ONTARIO

Netherlands Mexico

Disposable incomeper capita (C$2010)

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

JOBS

E 82.9%E 76.7%

7.3% 67.3%

E 66.2%E 50.5%

U 3.4%U 5.6%

U 7.7%U 26.2%

Wisconsin Japan

ONTARIO

Québec Greece

Unemployment rateEmployment rate

ON

TAR

IO PE

RFO

RM

S PO

OR

LY

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

COMMUNITY

96.9%97.2%

92.0%

91.0% 76.0%

Michigan Iceland

ONTARIO

Indiana Turkey

Perceived socialnetwork support

PEERLAGGARD

PEERLEADER

OECDLAGGARD

OECDLEADER

UNEMPLOYMENTRATE (U)

EMPLOYMENTRATE (E)

MORTALITYRATE

LIFEEXPECTANCY

9.0

8.5

9.5

8.0

7.5

7.0

6.5

6.0

GDP per capita (000 US$ 2015)

Index of Well-Being

Well-Developed OECD countries

40 50 60 $70

Australia

Canada

Netherlands

United States

Sweden

For well-developed countries like Canada, improvements in GDP do not guarantee improvements in well-being.

LESSONS FOR ONTARIO

1) No region excels in all indices.

2) Ontario performs well on most indices, mainly social ones, but needs to improve on the economic indices of jobs and income.

3)

Ontario has the greatest opportunity to boost productivity by:

GDP is still a useful measure to demonstrate the magnitude of the economic prosperity gap.

Phasing out the small business deduction to incentivizefirm growth.

Increasing the availability and affordability of child care to increase the female labour force participation rate.

Strengthening the alignment between employers and post-secondary institutions to close the skills gap and improve R&D performance.

Increasing ICT adoption by SMEs to enhance productivity.

RECOMMENDATIONS

27

LOOKINGBEYOND GDPMeasuring prosperity in Ontario

HIGHLIGHTS of WORKING PAPEROCTOBER 2016

105 St. George StreetToronto, ON M5S 3E6Telephone: (416) 946-7300Fax: (416) 946-7606

www.competeprosper.ca

linkedin.com/company/institute-for-competitiveness-&-prosperity

twitter.com/Institute_ICP