Ontario's universities and colleges produce 29,000 graduates a year in math, engineering and sciences.

Dramatically improved cost performance underlies Canada's low inflation rate. Ontario's unit labour cost performance compares favourably with the U.S. and has improved compared to Germany and Japan.

Because labour represents a significant portion of direct production costs in manufacturing, improvements in unit labour costs have a strong positive impact. Labour cost performance reflects both lower compensation costs and faster productivity growth.

Wages in Ontario are competitive with those in U.S. jurisdictions. When total compensation rates are compared, Ontario provides even more of a cost advantage, largely because of publicly funded health care.

In Ontario, the general minimum hourly wage rate is C$8.00. The student hourly wage rate (students under 18 working less than 28 hours a week excepted) is C$7.50.

Ontario has a number of legislated benefits, but offers substantial savings over other jurisdictions. Benefit costs in Canada are nearly half the G7 average. Mandatory contributions in Ontario for pension, health, and unemployment are each either the lowest or second lowest in the G7 and common employer-sponsored benefits are a fraction of American costs due to publicly funded healthcare.

Employees in Ontario are entitled to at least two weeks paid vacation following one year of employment, or vacation pay of at least 4 per cent of annual wages in the year the vacation was earned.

The Ontario Health Insurance Plan (OHIP) provides universal healthcare coverage to Ontario citizens and residents. It is primarily funded through personal income taxes, although large employers are subject to the Employer Health Tax of 1.95% of payroll expenditures. This is well below the G7 average, and savings relative to the American system become apparent as it drastically reduces expenses for private health insurance.

Ontario's workers' compensation system provides no-fault workplace accident insurance for workers and their employers.

Employers fund the system through annual assessments based on total payrolls and the accident experience of their industry. In return, employers transfer all responsibility for workplace claims of compensation to the Workplace Safety and Insurance Board. In 2007, the average premium rate is C$2.26 per C$100 of insurable earnings.

For further information on the Workplace Safety and Insurance Board, visit their website at http://www.wsib.on.ca.

The Employment Insurance system is designed to meet the needs of today's job market by changing its focus from basic income support to active employment measures. The goal is to encourage people to return to the job market and workplace. Employers and employees in Ontario both contribute premiums to the Employment Insurance System for all insurable employment. Earnings subject to Employment Insurance premiums include salaries, wages, paid leave and payment in kind. For 2007, employers pay employment insurance premiums at a rate of 2.52 per cent of wages, ranging up to a maximum annual premium of C$1,008. Premiums are paid on the first dollar earned to a yearly maximum of C$40,000 per employee.

More information about the Employment Insurance system can be found on the Human Resources and Skills Development Canada website at http://www.hrsdc.gc.ca/en/ei/menu/eihome.shtml.

Employers and eligible employees in Ontario contribute to the Canada Pension Plan, which provides retirement pension income as early as age 60 (subject to some conditions and actuarial reduction), and survivor benefits and disability benefits in respect of deceased and disabled contributors. The Canada Pension Plan rate is 4.95 per cent of wages for employers and employees, up to a maximum contribution of C$1,989.90 in 2007. Such contributions can be made to a maximum age of 70.

The Canada Pension Plan has an internet site at http://www.hrsdc.gc.ca/asp/gateway.asp?hr=en/isp/cpp/cpptoc.shtml&hs=cpr.

While employer benefit plans vary, they typically include pensions, short and long-term medical leave, eye and dental care, drug plans, private or semi-private hospital accommodation, and basic life insurance.

Total legislated and employer-sponsored benefits in Canada typically cost employers 29% of salary. This compares favourably to 32% in the US.