Manitoba Labour Market Bulletin

January 2011

Manitoba Labour Market Bulletin - January 2011 (PDF version, 199 kb)

The Labour Market Bulletin is produced monthly by economists and labour market analysts employed by Service Canada in the Western Canada and Territories Region.

Content is intended for personal and public non-commercial use.

Highlights in this Issue

• Highest provincial population growth in nearly 40 years
• Manitoba corporation capital tax eliminated
• $20-million medical/office building for southwest Winnipeg
• $18-million Osborne Street Bridge renovation
• HudBay Minerals invests $313 million on mining projects in Flin Flon/Snow Lake area
• Alexis Minerals invests $5.5 million in exploration at Snow Lake Mine property
• Keewatin Railway service upgrades
• VBINE Energy to construct new $2-million manufacturing plant in Winkler
• $5.8-water treatment plant in Lorette

We welcome your feedback.

Email:

lmi-imt-manitoba@servicecanada.gc.ca 

Mailing Address:

Editor, Labour Market Bulletin
Labour Market Information Services
Western Canada and Territories Region
Service Canada
266 Graham Avenue
Winnipeg, Manitoba, R3C 0K3

Manitoba

Highest population growth in nearly 40 years: Manitoba's population increased by 16,227 in 2010, to 1,240,000, including the arrival of 15,199 immigrants, the largest immigrant arrival since 1946. The total population increase for the last 10 years was nearly 92,000, more than double the increase of the previous 10 years.

Key Source: Province of Manitoba, December 22, 2010

Number of new international migrants sets record: In 2010, the number of international migrants settling in Manitoba was greater than in any year since 1946 (the first year records were kept). An estimated 15,000 moved to the province, which bodes well for success in meeting the province's immigration target of 20,000 in 2016 and beyond.

Key Source: Winnipeg Free Press, January 3, 2011

Manitoba corporation capital tax eliminated: Manitoba has eliminated the general corporation capital tax, effective January 1, 2011. On December 1, 2010, Manitoba became the first province in Canada to eliminate permanently the small business income tax. Other tax changes include: Research and Development Tax Credits, expansion of the Co-op Education and Apprenticeship Tax Credit, expansion of the Manitoba Fitness Tax Credit, and several others.

Key Source: Province of Manitoba, December 31, 2010

Largest percentage increase in payroll employment: Manitoba had the largest monthly percentage increase in payroll jobs, up 3,600 or 0.6% from 558,000 in September to 561,600 in October 2010, although the 1.4% year-over-year gain was the fifth smallest of the provinces. Average weekly earnings increased 0.8% to $795.68 in Manitoba, the fifth highest, well below the national average of $863.33.

Key Source: Winnipeg Free Press, December 24, 2010

Livestock tracking system saves export market: The new $400,000-livestock tracking system in Manitoba was a key factor in limiting the impact of the avian flu, which hit a Manitoba turkey farm. The ability to quickly identify the producer helped limit the impact to the infected farm, as did the precautionary temporary quarantine of two nearby farms. Using these methods avoided paralyzing the entire provincial poultry export market.

Key Source: Winnipeg Free Press, December 24, 2010

Canada-Manitoba feed and transportation assistance: The Governments of Canada and Manitoba are providing livestock producers with transportation assistance of up to $0.22 per tonne per mile to transport feed or $0.10 per head per mile to transport breeding animals. The support arises from the feed shortages, caused by the extremely wet growing season in Manitoba in 2010. Feed assistance is also available, up to $30 per ton.

Key Source: Province of Manitoba, December 17, 2010

$750,000 to keep Greyhound buses running until March 31: The Province of Manitoba and Greyhound agreed to a three-month extension of negotiations around a long-term plan for bus service in rural and northern Manitoba. Negotiations have been ongoing since September 2009, when Greyhound threatened to end bus service in the province, and issued layoff notices to 200 employees.

Key Source: Winnipeg Free Press, December 18, 2010

Changes to private investigator, security guard legislation: Employers governed by the Private Investigators and Security Guards Act can no longer apply for licences on behalf of their staff. They are now required to employ only those who are licensed as security guards or private investigators. Individuals are responsible for obtaining their own licence as a private investigator or security guard, and it remains in effect if they change employers. This change insures that newly hired employees can start work immediately after being hired. Temporary licenses are available for security guards who have valid criminal-record and child-abuse registry checks, but have not completed the training. The term of a temporary licence has been increased to six months.

Key Source: Province of Manitoba, January 4, 2010

Grants for Manitoba medical students: Beginning in the fall of 2011, medical students in Manitoba will be eligible for annual grants of $12,000. For each grant, the students will have to commit to working for six months, after graduation, in rural and remote areas where there are under-serviced populations. They will also have an option to increase the grant in their fourth year to $25,000 for a commitment of an additional year of service.

Key Sources: Province of Manitoba, December 9 and Winnipeg Free Press, December 10, 2010

Winnipeg

Construction of new medical / office building in southwest Winnipeg: Troika Developments, a BC real estate developer, is constructing a 71,000-square-foot, five-storey medical / office building in the southwest area of Winnipeg. The $20-million facility will be known as The Sterling Lyon Health Centre, and is expected to be complete by April 2011. Some of the tenants include surgeons, dentists, orthodontists, a pediatrician, an ear, nose, and throat specialist, hearing specialists, an X-ray lab, and a pharmacy. Eight local doctors who have leased space have partnered with Troika as co-owners of the building, and will own a majority stake in the building. Troika will manage the construction of the building while DTZ Barnicke Winnipeg Ltd. will oversee the leasing and manage the building once it is completed. Troika Developments is also considering constructing a second office building in the same area.

Key Source: Winnipeg Free Press, December 13, 2010

Osborne Street Bridge renovation: An $18-million renovation to the Osborne Street Bridge is scheduled to begin in April 2011. The bridge, built in 1975, is one of the busiest in Winnipeg. The renovation will increase the lifespan of the bridge by 75 years. Active transportation will be the central theme of the renovation, where a dedicated walkway for pedestrians and bike paths for cyclists has been incorporated into the plan. The bridge will be partially opened during two construction periods. The east side of the bridge will be closed in April, with construction finishing in October. The following spring, the west side of the bridge will be closed following the same construction timeframes.

Key Source: Winnipeg Free Press, December 17, 2010

Construction of new Hyundai dealership: Birchwood Automotive Group is adding a Hyundai outlet to its network of brands and automotive stores by constructing a new $5-million dealership in the northwest side of Winnipeg. Birchwood Hyundai is expected to open in the fall of 2011, becoming Birchwood Automotive Group's tenth retail outlet in the city.

Key Source Winnipeg Free Press, December 15, 2010

New projects planned for Polo Park area: Shindico Realty, a local real-estate developer, is planning two new projects for the Polo Park Shopping Centre area. Work is expected to start in April 2011 on a 14,000-square-foot, multi-tenant retail complex on Empress Street that should be completed by late summer. Construction of a three-storey, 150,000-square-foot retail / office complex on the former Winnipeg Arena / CTV site north of the Polo Park Shopping Centre should begin in the spring. In addition, a local restaurateur / developer is constructing a 7,050-square-foot $1.5-million retail / office building located at Sargent Avenue and Milt Stegall Drive.

Key Source: Winnipeg Free Press, December 21, 2010

Renovations to three city libraries: The Province of Manitoba, under the Manitoba-Winnipeg Infrastructure Fund, is providing $1 million to renovate three city libraries. The funding will be used for interior renovations to the Louis Riel, Osborne, and Henderson libraries. Technology upgrades will include replacement of integrated library computer systems. Library shelving and furniture will be replaced at these and other city libraries.

Key Source: Province of Manitoba News Release, December 10, 2010

Dynamic buys K&S Tool and Die: Dynamic Machine Corp., a machining, repair and parts distributor, acquired K&S Tool & Die Ltd. by assuming its debt. Dynamic's main business is repairing machinery while K&S is a precision metal fabricator. K&S had invested $1 million in new equipment before the recession and had lost a large customer. All of K&S's precision equipment will be moved to Dynamic's facility on Dugald Road in March. The addition of 16 people from K&S will increase Dynamic's workforce to 90. The integration of the two companies is expected to create additional work.

Key Source: Winnipeg Free Press, December 30, 2010

New Flyer layoffs: New Flyer Industries, a Winnipeg-based bus-manufacturing company, issued lay off notices in early December affecting 32 unionized workers and 17 administrative workers, including managers and support workers. New Flyer reported a 15.9% decline in revenue in its third quarter results released in November. Demand is not expected to recover until at least 2012, as many US states are cutting services and deferring procurement of new equipment in an effort to balance their budgets. The company layed off 320 employees from its Winnipeg workforce in the summer of 2009, due to the deferral of a $122-million order.

Key Source: Winnipeg Free Press, December 7 and 15, 2010

Memorandum of Understanding with Mitsubishi Heavy Industries: The Province of Manitoba and Tokyo-based Mitsubishi Heavy Industries signed a one-year Memorandum of Understanding to work on projects to test and develop renewable-energy technologies that have been developed by Mitsubishi. One of the technologies developed by Mitsubishi is an electric bus. The company has entered talks with New Flyer Industries, a local transit-bus manufacturer, to incorporate its technology into a prototype electric bus that would be tested in Winnipeg under North American weather conditions. Other local companies and academic institutions where partnerships could be possible are Manitoba Hydro, Red River College, the University of Manitoba, and Westward Industries, a specialty vehicle manufacturer. Areas where joint projects could be developed include battery-storage technologies, heat-pump technologies, energy-efficiency systems and technologies, and solar technologies and silicon processing.

Key Source: Winnipeg Free Press, December 17, 2010

Standard Aero signs maintenance agreement with Pel Air: Standard Aero, a gas-turbine engine maintenance, repair and overhaul company, signed a 10-year maintenance agreement with Pel Air Aviation, a small Australian airline. Pel Air will service the fleet of King Air B200 aircraft Pel Air operates as air ambulances. Standard Aero has been able to secure contracts with a range of carriers, leading to steady and diversified work that has helped the company through economic peaks and valleys, allowing its workforce to grow over recent years to 1,400. Dubai Aerospace Enterprises, which owns Standard Aero, has reportedly placed the company up for sale.

Key Source: Winnipeg Free Press, December 14, 2010

Sport Mart closing: Sport Mart will be closing its sports retail store on Empress Street next to the Polo Park Shopping Centre. Forzani Group Ltd., which owns Sport Mart, closed a similar store on Pembina Highway in October 2010. Forzani Group also owns Sport Chek located in the Polo Park Shopping Centre and expects that business will pick up at this location once Sport Mart closes in January. There are two remaining Sport Mart outlets, one at Kildonan Place and the other in Unicity Mall and there are no plans to close these locations. The vacated space on Empress Street has been leased to Addition-Elle, a women's clothing store.

Key Source: Winnipeg Free Press, December 21, 2010

Low apartment-vacancy rate in Winnipeg: According to Canada Mortgage and Housing Corporation (CMHC), Winnipeg's apartment vacancy rate is at its lowest level since 1990, when CMHC began tracking vacancy rates. The vacancy rate of 0.8% is also the lowest among 34 Canadian cities surveyed as part of the agency’s Fall Rental Market Survey. An influx of new immigrants and the loss of 835 rental units over the past year were cited as factors in reducing the supply of vacant suites. Of the 835 rental units, 356 were converted to condominiums while the remainder were demolished, renovated, combined with other units to create larger suites, or converted into student housing. The reduced supply of rental units resulted in the average rent for a two-bedroom apartment increasing by 3.6%. The provincial government in its 2009 throne speech committed to build 1,500 new affordable-housing units over the next five years; 600 units are already either under construction or in the planning stages.

Key Source: Winnipeg Free Press, December 10, 2010

Banner year for property purchases: According to data compiled by Colliers Pratt McGarry, a local commercial real estate firm, Winnipeg's commercial real estate sector posted $544.7 million worth of property sales during the first 10 months of 2010. This sales record is the second highest since 2007 when $750 million worth of property was sold. Sale and leasing transactions included $194.5 million for apartment blocks, $128.2 million for office buildings, $118.6 million for retail complexes, $56.5 million for industrial buildings, $29.6 million for parkades and parking lots, and $17.2 million for land.

Key Source: Winnipeg Free Press, December 27, 2010

Chinatown Development Corporation seniors’ complex proposal: The Chinatown Development Corporation (CDC) proposed the purchase and demolition of a two-storey structure built in 1882 for replacement with a housing complex for Asian seniors. The building houses the Shanghai Restaurant, which has been in business since the 1940s. CDC has already made an offer to purchase the building. The City of Winnipeg's executive policy committee has approved the demolition of the building on condition that the future owners file a redevelopment plan and obtain a building permit. City Council will review the Corporation's plans in the near future.

Key Source: Winnipeg Free Press, December 9, 2010

African cultural / recreation centre proposed for downtown: The African Canadian Foundation is planning to raise $7 million to purchase a parking lot from Shelter Canadian Properties Ltd. on which to build a new African-Canadian cultural / recreation centre. Phase One of the project involves the construction of a $6-million, 24,000-square-foot building that includes a recreation centre, multi-purpose hall, meeting rooms, office space, daycare centre and African-Canadian restaurant. Construction of the first phase is anticipated to begin in the spring of 2012, and be completed by the summer of 2013. Phase Two consists of the construction of a four-storey residential / retail complex that would include underground parking, an imported food store, and 100 student apartments. Construction of Phase Two would begin in 2014. Three levels of government and the Winnipeg Foundation helped develop the business plan for the $18-million project, and will provide some funding.

Key Source: Winnipeg Free Press, January 4, 2011

Football stadium proposal at University of Manitoba: City Council approved the revamped plan to build a new 33,000-seat, $190-million stadium at the University of Manitoba. An agreement has been struck between the City of Winnipeg, the Province of Manitoba, and the Winnipeg Football Club. Construction costs rose to $190 million with the plan calling for the Province to pay for most of the construction costs up front. The Winnipeg Football Club is expected to contribute to the plan through a repayable building loan from the Province, and the City of Winnipeg's contribution will be $7.5 million.

Key Sources: Winnipeg Free Press, December 10, 2010, and Winnipeg Free Press Online Edition, December 15, 2010

Additional details of football stadium plan: The Winnipeg Football Club will be expected to pay back $85 million over a 44-year term to the provincial government as its share in the construction of a $190-million football stadium. Revenue sources from luxury boxes, naming rights, entertainment taxes, and facility fees will be used to help the club pay down its debt. As part of the agreement, the club needs to pay $4 million annually to the provincial government, interest free for the first four years, with the remainder paid back at a fixed provincial borrowing rate for 40 years starting in 2017. The City of Winnipeg is contributing $7.5 million, using the proceeds from the sale of the Canad Inns Stadium site at Polo Park. As well, the City is donating $1.1 million of services in kind, by waiving development fees. It will make $1.4 million worth of traffic improvements around the new stadium site at the University of Manitoba. BBB Stadium Inc. will oversee the development and construction of the stadium, which is anticipated to open in June 2012.

Key Sources: Winnipeg Free Press, December 16, 20, and 22, 2010

Northern Manitoba

Auriga Gold to restart mine in Flin Flon area: Auriga Gold Corp., a junior miner, is planning to restart the Puffy Lake Mine in the Sherridon area. The company announced that the first phase of its drilling program is underway at what is known as the Maverick Gold Project. The project, 65 kilometres northeast of Flin Flon, includes Puffy Lake Mine and the adjacent Nokomis Property. Puffy Lake Mine produced over 28,000 ounces of gold in 1988 and 1989.

Key Source: Flin Flon Reminder, December 13, 2010

HudBay investing $313 million in Flin Flon/Snow Lake area: HudBay Minerals Inc. plans to spend at least $313 million in 2011 on mining and exploration projects in Manitoba, with $280 million targeted for capital expenditures and at least $33 million for exploration. Most of next year's capital, about $163 million, will be spent on developing HudBay’s $560-million Lalor gold/zinc mine near Snow Lake. The start up of production at Lalor should roughly coincide with the pending closure of the Chisel North Mine, scheduled for sometime in 2012. The company plans to move its workforce from Chisel North to Lalor.

Key Source: Winnipeg Free Press, December 14, 2010

HudBay Minerals buying into Halo Resources: HudBay Minerals Inc. announced it has entered into a subscription agreement to pay $1.83 million for 3,655,000 units in Toronto-based Halo Resources. Halo has promising claims around the Town of Sherridon, a former mining community 60 kilometres northeast of Flin Flon. HudBay is preparing to close its long operating Trout Lake Mine near Flin Flon, within approximately one year, and is searching for ore to compensate for the pending closure. The Sherridon area deposits are located near existing transportation to processing facilities in Flin Flon. The junior miner has already spent more than $13 million in exploration in the area and continues to evaluate areas for additional copper-zinc deposits.

Key Source: The Flin Flon Reminder, December 13, 2010

Alexis Minerals has encouraging results north of Snow Lake: Alexis Minerals entered into an option agreement to acquire claims north of the Snow Lake Mine property. Encouraging drill results mean that the property could become the foundation for significant growth in resources, reserves, and gold production within the next 12 to 18 months. Alexis will invest approximately $5.5 million of its annual exploration budget in the property this year.

Key Source: Thompson Citizen, December 17, 2010

Razore Rock Resources exploration program near Flin Flon: Junior miner Razore Rock Resources announced that a technical report has been completed for its Duff Claims Property, located east-northeast of Flin Flon and east of Snow Lake. Based on this, $546,105 will be spent on a two-phased exploration program, as samples point to the potential for high-grade gold mineralization.

Key Source: The Flin Flon Reminder, December 10, 2010

Prophecy Resource Corp. discovery zones near Lynn Lake: Prophecy Resource Corp., a Vancouver-based junior miner, announced that new discovery zones have been found at its Lynn Lake Nickel Sulphide Project. The miner began a 3,000-metre drilling program in September to test several targets that were first noted in its spring geological survey. The Lynn Lake mine, which in its prime was the third largest nickel producer in North America behind Sudbury and Thompson, was operated by Sherritt-Gordon from 1953 to 1976. The project was acquired by Prophecy from Victory Nickel Inc. in October 2009.

Key Source: The Thompson Citizen, December 10

Amisk Gold Property yields impressive results: Promising samples of gold and silver were identified on the 13,900-hectare Amisk Gold Property, located 20 kilometres southwest of Flin Flon. The property is a 65% to 35% joint venture between Claude Resources and Vancouver-based junior miner St. Eugene Mining Corporation.

Key Source: Flin Flon Reminder, December 20, 2010

Optimism for Callinan Mines exploration at Cranberry Portage: Junior miner Callinan Mines is encouraged by findings from its first drill hole at the former site of the Gurney Mine, about 20 kilometres northeast of Cranberry Portage. Early results from this long-defunct gold mine show the presence of gold and silver. Callinan has renamed the site the Gossan Hill Project. The company said a decision to restart production will depend on results of the drilling. The mine closed in November 1939, when reserves were reported to be depleted.

Key Source: Flin Flon Reminder, December 17, 2010

Reed Lake deposit has good results: Ongoing exploration drilling at the Reed Lake deposit near Snow Lake is showing encouraging results. Copper and zinc, and appreciable amounts of gold and silver, were found. HudBay Minerals Inc. and VMS Ventures have a joint venture agreement for this property.

Key Source: Flin Flon Reminder, December 31, 2010

Keewatin Railway service upgrades: Keewatin Railway Company continues to upgrade its passenger rail service. A new $700,000-passenger station and loading ramp were constructed in Pukatawagan. A $1.2-million maintenance shop in The Pas is slated to be complete by March 2011. Keewatin Railway operates a passenger and freight rail service between The Pas and Pukatawagan, in northern Manitoba, and is owned by three First Nations communities.

Key Source: Flin Flon Reminder, December 31, 2010

On-line help for small businesses in western Interlake: BizPaL, an innovative service that provides small businesses with simplified access to information and reduces paperwork and red tape that small business owners encounter was launched on December 10, 2010. The service in the Western Interlake Planning District was developed by the rural municipalities of St. Laurent, Coldwell, Eriksdale and Siglunes, the Province of Manitoba and the Government of Canada. Information is available at http://bizpal.ca/.

Key Source: Province of Manitoba News Release, December 10, 2010

Two new provincial parks in northwestern Manitoba: The Province of Manitoba announced the establishment of two new parks: the Colvin Lake Provincial Park, protecting 163,070 hectares, and the Nueltin Lake Provincial Park, which straddles the Nunavut border, totalling 447,190 hectares. Under the Provincial Parks Act, commercial logging, mining, hydroelectric development, oil and gas development, and any other activities that may significantly or adversely affect habitat, will be prohibited.

Key Source: Opasquia Times, December 8, 2010

Southern Manitoba

Flood assistance for Assiniboine Valley producers: The Province is making more than $2.5 million in flood assistance available to Assiniboine Valley producers who experienced financial loss due to excessive flooding of agricultural land between the Shellmouth reservoir and Brandon in 2010. The Assiniboine Valley Producers Flood Compensation Program provided more than $900,000 in 2005, $380,000 in 2006, and $195,000 in 2007. For 2010, native hay, pasture, and the restoration of forage crops are included in the program. The 2010 program will be managed through the Manitoba Agricultural Services Corporation (MASC). Payments will complement existing crop production and excess-moisture insurance payments. The Assiniboine River Flood Compensation Steering Committee continues to work on a long-term solution to flooding attributed to the operation of the Shellmouth reservoir.

Key Source: Manitoba News Media Release December 22, 2010

Virden –  New hotel: Construction of the new Comfort Inn and Suites located on Frontage Road began in October last year. The hotel will offer 60 guest rooms, including ten regular suites, seven family suites, and two Jacuzzi rooms, as well as hot tub, swimming pool with waterslide, exercise room, guest laundry, and a small convenience store. Comfort Inns provide a large hot continental breakfast area, meeting room, hospitality room, and business centre. Virden's new hotel will be open for business by September 2011.

Key Source: Westman Journal, December 15, 2010

Winkler – VBINE Energy to construct manufacturing plant in Winkler: VBINE Energy of Moosomin, Saskatchewan is set to begin construction in January on a new $2-million plant that will manufacture and assemble parts for vertical axis wind turbines. The 32,000-square-foot plant will be built on a 7.5-acre site in Winkler's industrial park. The operation will employ an estimated 100 people by the end of 2011, a number that could double in the second year. Two local businessmen have partnered in the business venture with VBINE Energy. Factors for VBINE's decision to locate in Winkler included the city's work ethic, available labour force, co-operation within the business community and proximity to the US market.

Key Source: Winkler Times December 23, 2010

Assiniboine River Bridge closed for upgrades: The Assiniboine River Bridge located on Highway 250, north of Alexander, will be closed from January 6, 2011 to the middle of April. Both ends of the bridge will be extended by approximately three metres and new support structures will be installed under each approach. A second closure of the bridge will be scheduled in July for deck repairs and new deck asphalt. The closures will affect access to the landfill site, school bus traffic, and residents facing detours.

Key Source: Brandon Sun January 5, 2011

Lorette – New water treatment plant: A new $5.8-million water facility was opened in the RM of Lorette on December 3, 2010. The new expanded and upgraded facility will provide chlorination and ultraviolet treatment, giving residents of the community access to safe drinking water. Lorette had a boiled water advisory since 2005.

Key Source: The Carillon, December 9, 2010

Brandon – Sioux Valley Dakota Nation (SVDN) buys Fleming School Building: Brandon School Division trustees voted in favour of selling the Fleming elementary school building and its immediate footprint to SVDN, for $300,000. SVDN had been renting Fleming school from Brandon School Division since 2006.

Key Source: Brandon Sun, December 16, 2010

Brandon City Council approved rate increases for services: In December 2010, Brandon City Council approved increases between two and three percent for everything from sewer and water to cemeteries, and seven to ten percent for recreational services. The cost of a monthly bus pass increased from $64 to $66 and cash transit fares remain at $2.15 per ride.

Key Source: Brandon Sun, December 14, 2010

Brandon – Biodiesel processor for sale: The City of Brandon is no longer using the bio-diesel processor at the Eastview landfill due to the expensive and time-consuming process required to obtain a license. The few dozen restaurants that had been participating in the City's free used cooking oil pickup program were put in touch with Winnipeg-based companies Grease Man Jack and Recycoil. The City hopes to sell the processor and recoup its $50,000 investment.

Key Source: Brandon Sun, December 26, 2010