Newfoundland and Labrador - Labour Market Bulletin

April 2011

Labour Force Trends - The unemployment rate in the province reached a record low in April, while employment levels reached an all-time high. Employment increased by 6.9% over the past twelve months, which was the fastest rate of increase in the country.

  • Employment increased by 3,100 people in April in comparison to the previous month. The labour force remained unchanged, just slightly below February's record high. As a result, the unemployment rate decreased to 11.1% from 12.4% a month earlier.

  • Over the year, employment levels have increased for youth (15-24 years) as well as for both genders in the age 25 and older category. Unemployment rates decreased the most for youth, as their employment grew while the size of the youth labour force remained stable.

Newfoundland and Labrador Labour Force Trends
Monthly Variation Yearly Variation
Seasonally Adjusted Data ('000) April 2011 March 2011 April 2010 Number Percent Number Percent
Population 15+ 429.1 429.2 427.7 -0.1 0.0 1.4 0.3
Labour Force 260.7 260.7 254.8 0.0 0.0 5.9 2.3
Employment 231.7 228.6 216.7 3.1 1.4 15.0 6.9
Full-Time 198.3 196.9 184.7 1.4 0.7 13.6 7.4
Part-Time 33.4 31.7 32.0 1.7 5.4 1.4 4.4
Unemployment 29.0 32.2 38.1 -3.2 -9.9 -9.1 -23.9
Participate Rate (%) 60.8 60.7 59.6 0.1 - 1.2 -
Unemployment Rate (%) 11.1 12.4 15.0 -1.3 - -3.9 -
Employment Rate (%) 54.0 53.3 50.7 0.7 - 3.3 -
Total may not add due to rounding
Source: Statistics Canada’s Labour Force Survey – HRSDC Table 087
  • Newfoundland and Labrador had the strongest provincial employment growth over the past year, up 6.9% from last April. This compares to a 1.7% increase nationally. Almost all of the increase was in full-time employment.

  • The provincial unemployment rate of 11.1% is down considerably from 15.0% a year ago, and is a record low for the province. This is the largest decline of any province, though it remains well above the national rate of 7.6%.

Employment and unemployment rate
Source: Statistics Canada's Labour Force Survey

Employment by Industry - Over the past twelve months, most of the province's employment increase was in the Goods-Producing sector. Service industries remain near the record high set in March.

  • In April, Construction employment reached a record high. For example, the industry has benefited from a large increase in non-residential investment related to the Long Harbour nickel processing facility. Growth has been particularly strong since last summer.

  • Retail and Wholesale Trade employment is up by almost 10%, or 3,500 jobs, from a year ago as the economy has improved.

  • Forestry, Fishing, Mining and Oil & Gas has shown a notable employment increase. This is mainly due to growth in the Oil & Gas sector.

  • Manufacturing has rebounded from its record lows set in 2010.

Employment By Industry
Monthly Variation Yearly Variation
Seasonally Adjusted Data ('000) April 2011 March 2011 April 2010 Number % Number %
Total 231.7 228.6 216.7 3.1 1.4 15.0 6.9
Goods Producing Sector 53.2 49.1 43.7 4.1 8.4 9.5 21.7
Agriculture 2.0 1.6 1.5 0.4 25.0 0.5 33.3
Forestry, fishing, mining, oil and gas 18.3 16.5 15.9 1.8 10.9 2.4 15.1
Utilities 2.4 2.2 1.9 0.2 9.1 0.5 26.3
Construction 18.5 18.2 15.3 0.3 1.6 3.2 20.9
Manufacturing 12.0 10.5 9.1 1.5 14.3 2.9 31.9
Service Producing Sector 178.5 179.5 173.0 -1.0 -0.6 5.5 3.2
Trade 39.7 39.3 36.2 0.4 1.0 3.5 9.7
Transportation and Warehousing 10.9 11.4 11.8 -0.5 -4.4 -0.9 -7.6
Finance, insurance, real estate and leasing 7.4 7.0 7.9 0.4 5.7 -0.5 -6.3
Professional, scientific and technical services 8.1 8.7 6.5 -0.6 -6.9 1.6 24.6
Business, building and other support services 5.7 6.2 5.4 -0.5 -8.1 0.3 5.6
Educational Services 19.2 18.4 17.3 0.8 4.3 1.9 11.0
Health care and social assistance 36.5 36.3 36.7 0.2 0.6 -0.2 -0.5
Information culture and recreation 8.2 8.3 7.0 -0.1 -1.2 1.2 17.1
Accommodations and food services 11.9 12.2 16.1 -0.3 -2.5 -4.2 -26.1
Other Services 11.0 11.4 9.7 -0.4 -3.5 1.3 13.4
Public Administration 20.0 20.5 18.2 -0.5 -2.4 1.8 9.9
"--" indicates number suppressed due to high sample variance
Total may not add due to rounding
Source: Statistics Canada’s Labour Force Survey – HRSDC Table-88

Economic Regions - Over the past year, employment and labour force growth was strongest in the South Coast - Burin region. Employment levels are higher than they were in most regions of the province.

The Avalon Peninsula, which includes the St. John's area, experienced a significant improvement in labour market conditions in April, in comparison to a year ago. Strong employment growth in Construction, Retail / Wholesale Trade and Public Administration helped lower the unemployment rate considerably. On the Peninsula, the rate fell to 8.2%, down from 13.0% last year at this time. In St. John's in particular, the unemployment rate dropped to 5.9% from 8.4% over the same period, as employment grew at a faster rate than did the labour force.

The South Coast - Burin Peninsula region had the fastest employment growth in the province over the past year. Much of the region's employment growth was in Construction and Manufacturing. However, the area's unemployment rate rose slightly as the labour force grew faster than employment. Labour force participation rose to 56.4% compared with 49.4% a year ago.

In the West Coast - Northern Peninsula - Labrador area, the unemployment rate increased slightly from April of last year. This was the result of a small increase in the size of the labour force, while employment showed a small decline.

The unemployment rate for the Notre Dame - Central - Bonavista Bay region has dropped over the past year, from 27.5% to 19.5%. While employment growth is driving this change, the unemployment rate is being pushed down farther because the size of the labour force is shrinking. This region has the lowest labour force participation rate in the province and was the only region to show a decrease over the past year. Also of note, much of the area's employment increase over the year was part-time in nature, while growth in other economic regions was primarily full-time work.

Regional Breakout
Three Month Moving Averages
Seasonally unadjusted data
April 2011 April 2010 Variation April 2011 April 2010 Variation
  Newfoundland and Labrador 1010 - Avalon Peninsula
Population 15+ ('000) 429.2 427.8 1.4 220.4 218.0 2.4
Labour Force ('000) 251.8 248.2 3.6 140.9 138.9 2.0
Employment ('000) 217.3 204.7 12.6 129.4 120.9 8.5
   - Full-Time ('000) 183.0 170.9 12.1 109.8 101.7 8.1
   - Part-Time ('000) 34.3 33.8 0.5 19.5 19.2 0.4
Unemployment ('000) 34.5 43.4 -8.9 11.5 18.0 -6.5
Participation Rate (%) 58.7 58.0 0.7 63.9 63.7 0.2
Unemployment Rate (%) 13.7 17.5 -3.8 8.2 13.0 -4.8
Employment Rate (%) 50.6 47.8 2.8 58.7 55.5 3.2
  1020 - South Coast - Burin Peninsula 1030 - West Coast - Northern Peninsula - Labrador
Population 15+ ('000) 30.7 31.2 -0.5 87.1 87.3 -0.2
Labour Force ('000) 17.3 15.4 1.9 48.5 48.1 0.4
Employment ('000) 13.3 12.0 1.3 38.3 38.6 -0.3
   - Full-Time ('000) 11.6 9.7 1.9 32.7 32.3 0.4
   - Part-Time ('000) 1.8 2.3 -0.5 5.6 6.2 -0.6
Unemployment ('000) 4.0 3.3 0.7 10.2 9.5 0.7
Participation Rate (%) 56.4 49.4 7.0 55.7 55.1 0.6
Unemployment Rate (%) 23.1 21.4 1.7 21.0 19.8 1.2
Employment Rate (%) 43.3 38.5 4.8 44.0 44.2 -0.2
  1040 - Notre Dame - Central Bonavista Bay St-John's Nfld.
Polulation 15+ ('000) 90.9 91.3 -0.4 160.7 159.0 1.7
Labour Force ('000) 45.1 45.8 -0.7 110.5 107.5 3.0
Employment ('000) 36.3 33.2 3.1 104.0 98.5 5.5
   - Full-Time ('000) 28.9 27.1 1.8 88.7 83.2 5.5
   - Part-Time ('000) 7.4 6.1 1.3 15.3 15.3 0.0
Unemployment ('000) 8.8 12.6 -3.8 6.5 9.0 -2.5
Participation Rate (%) 49.6 50.2 -0.6 68.8 67.6 1.2
Unemployment Rate (%) 19.5 27.5 -8 5.9 8.4 -2.5
Employment Rate (%) 39.9 36.4 3.5 64.7 61.9 2.8
Corner Brook  
Populaiton 15+ ('000) 22.3 22.3 0.0      
Labour Force ('000) 11.2 11.7 -0.5      
Employment ('000) 9.9 9.4 0.5      
   - Full-Time ('000) 8.5 7.8 0.7      
   - Part-Time ('000) 1.4 1.6 -0.2      
Unemployment ('000) 1.3 2.3 -1.0      
Participation Rate (%) 50.2 52.5 -2.3      
Unemployment Rate (%) 11.6 19.7 -8.1      
Employment Rate (%) 44.4 42.2 2.2      
"--" indicates number suppressed due to high sample variance
Total may not add due to rounding
Source: Statistics Canada’s Labour Force Survey – HRSDC Table-88

LABOUR MARKET NEWS BY REGION

Avalon Peninsula

Retail:

Images In Slate, a business in Conception Bay North that made products from local slate, was destroyed by fire. Damage was estimated at about $500,000 and has left 10 people out of work.   Source: CBC, April 6, 2011

The Family Barber Shop on Duckworth Street in St. John's has been sold to a neighbouring business and will be closed as of April 23rd. Memorabilia has been donated and sold from the establishment.   Source: The Telegram, April 2, 2011

A new bakery has opened in downtown St. John's on the location that used to be home to Auntie Crae's. Rocket Bakery and Fresh Food also has a bistro-style setting for customers to sit in and enjoy some of their freshly baked goods.   Source: VOCM, April 3, 2011

Fishing:

Both the inshore and the offshore shrimp fisheries in Newfoundland and Labrador have seen a large cut in quota allowed by the Government. The up-to-40% cut means a reduction of 52 million pounds of fish. This will impact over 1800 fishers and over 1500 workers in 13 shrimp plants in this province.   Source: CBC News & The Telegram, April 1, 2011.

Construction:

Fortis Inc. has put forward a proposal to St. John's City Council for the construction of a $50 million office building downtown. The former Horwood Lumber site on New Gower Street will possibly see the construction of a 12 story structure. The energy efficient and environmentally friendly building will provide two years of employment for almost 60 people, or 250 000 person hours; provide much needed 143 000 square feet of Class A top-level business office space to attract new businesses; up to 183 new parking spaces, in addition to $1.5 million in tax revenue for the city.  Source: The Telegram & CBC News, April 4, 2011.

Health Care:

Eastern Health has hired 14 new full-time paramedics to staff two new satellite ambulance stations in the St. John's metro region. These stations will house three new ambulances. These upgrades will improve the response time to emergencies.   Source: VOCM, April 4, 2011

The Newfoundland and Labrador Medical Association and the province's Doctors have signed a Memorandum of Agreement with the Province. The recruitment and retention of doctors in the province may be an easier task than ever thanks to physicians now having salaries on par with their colleagues from the other Atlantic provinces. Oncologists and pathologists will both receive a 42 per cent pay increase to this effect, and all physicians will receive their raises retroactive to October 1, 2009.   Source: The Telegram, April 9, 2011

Professional and Technical Services:

Infotech is opening new headquarters in St. John's. The IT firm is expanding and is relocating its head office from Kenmount road to a new building on Newfoundland Drive, in addition to another new site in Moncton, NB. They are also recruiting more IT professionals. Required are Microsoft-centric project managers, programmer and systems analysts, and database administrators.   Source: The Telegram, April 19, 2011

Education and Training:

The Conne River Band Council has signed a Memorandum of Understanding with the College of the North Atlantic to provide training programs for the Miawpukek First Nation. These programs will be developed based on labour market demands and the needs of the band council. The new Aboriginal Skills Employment Training Strategy (ASETS) will help prepare aboriginal people to find and keep high-demand jobs.   Source: The Telegram, April 2, 2011.

Transportation:

Great Lakes Feeder Lines and CAI Marine Inc. have been awarded contracts to supply and operate the freight vessel that serves the west coast of NL to northern Labrador, in combination with supplying administrative services such as handling freight, as well as the ticket and reservation portion of the service.   Source: The Telegram, April 4, 2011.

Trades:

Apprentices in our province, especially those who have more difficulty in being hired, will benefit from a $2.6 million program by the Provincial Government. Journeyperson certification will be easier to obtain in part to this program which will see incentives, in the form of money, to employers to hire and train these tradespeople. Wage subsidizes will be determined by the years of experience accumulated: 90%, 80%, and 60% for 1st, 2nd, and 3rd year apprentices respectively.   Source: The Telegram, April 2, 2011

South Coast - Burin

Construction:

After being short-listed in a competition for the 30 year, $35 billion overhaul of Canadian Maritime Infrastructure for of the Canadian Government, Kiewet has withdrawn from the bidding process. The company stated that they are too busy with other contracts and there is currently a shortage of qualified people to do the work required. This decision leaves workers on the Burin Peninsula to continue to seek work out of province or to wait for other local projects.   Source: CBC News, April 12, 2011;   VOCM April 13, 2011;   The Telegram April 13, 2011

Manufacturing:

The St. Lawrence Fish Plant is receiving a new canning operation. 15-20 new employment opportunities will result from Ocean Choice International's installation of canning equipment to its plant. The canning of salt fish will commence when the company receives approval from the Canadian Food Inspection Agency.   Source: The Southern Gazette, April 26, 2011.

Fishing:

A proposal from the Fish Food and Allied Workers would see 270 lobster fishers from this province voluntarily exit the industry, including a $9.1 million dollar contribution from Ottawa towards buying back lobster licenses. The province hasn't committed to the deal to this date.   Source: The Southern Gazette, April12th, 2011

Tourism:

With other towns of the province already participating in the geocaching experience, the Coast of Bays also hope to increase their tourism by introducing it to their area. Modern treasure hunting with GPS systems are currently practiced worldwide and the fact that tourists plan their vacations around them makes the area hopeful for an increase in tourism and ultimately the economy and new jobs.    Source: The Coaster, April 26, 2011.

West Coast-Northern Peninsula-Labrador

Mining:

The province's mining industry is looking up,with an increase of 17.5% in iron ore shipments in 2010 compared with the previous year. Shipping of metal concentrates from Voisey's Bay also increased last year. They were up 50% over 2009 shipments, with a value of more than $900 million shipped out in 2010. Mineral exploration in the province also rebounded from the recession it experienced. In 2010, exploration spending doubled to $110 million.    Source: The Telegram, April 20, 2011

Health Care:

Thanks to government funding 25 new long-term care beds will open up in Corner Brook. $3 million will go towards the long-term care facility in that area, while $189,300 will be used for the protective care residences. $18.5 million was also announced to continue with the planning of a new regional hospital in Corner Brook. It's expected the hospital will be completed by 2016.   Source: The Western Star, April 27, 2011

Notre-Dame - Central - Bonavista Bay

Transportation and Mining:

Rambler Metals and Mining is planning to begin transporting copper concentrates out of the Town of South Brook. The company recently made a deal with the town to use their docking facilities, which will also bring revenues of $30,000 a year to the town, for the next five years. In addition, Rambler Metals will need a storage facility for the copper concentrates. They plan to start surveying an area near Goodyear's Cove for construction of the facility in the near future. The first shipment could take place late this year or in early 2012. The company will eventually transport about 20,000 tonnes of concentrates each year.    Source: The Telegram, April 11, 2011

Prepared by: Labour Market Information Unit (NL), Service Canada

For more information contact: visit our website at www.labourmarketinformation.ca

Other Newfoundland and Labrador Labour Market Bulletins