Monthly Labour Market Bulletin - December 2010

---

Labour Force Trends – Job growth resumed in December following two months of decline from the all-time high set in September. Employment increased by 4.6% compared to the same month a year ago, which was the fastest rate of growth in the country.

• Employment increased by 2,500 or 1.1% in December compared with the previous month. The labour force expanded by a similar amount so there was very little change in the number of people unemployed. The unemployment rate fell marginally to 13.7% from 13.8% a month earlier.

• December’s job gains were shared among men and women 25 and over and were mostly full-time. Employment among youth (15 – 24) declined marginally compared to November. The unemployment rate for women 25 and over was significantly less than the rate for men of the same age at 10.8% and 15.0% respectively. The youth unemployment rate was unchanged at 18.4% in December.

• Newfoundland and Labrador recorded strong employment growth over the past year. Employment in December was up 4.6% in comparison with the month of December a year ago, the fastest rate of growth of any province and more than twice the national pace of 2.2%.

• The provincial unemployment rate fell to 13.7% in December from 15.2% a year ago, the largest decline of any province over this period. Despite the improvement the provincial unemployment was the highest in the country and well above the national average of 7.6%.

Employment by Industry – The Goods-Producing sector generated all of the monthly increase in employment in December. Service industries have provided most of the employment growth since December, 2009.

• The construction industry generated most of December’s job gains. Construction employment increased by 2,000 to reach its highest level in 15 months. The industry has benefited from a large increase in non-residential investment related to the Long Harbour nickel processing facility, oil and gas expansion, and public sector infrastructure.

• The Forestry, Fishing, Mining and Oil & Gas sector also contributed to employment gains in December given strength in mining as well as mining and oil and gas support services. Other components of the Goods-Producing Sector showed little change relative to November.

• Service sector employment was unchanged in December compared with the previous month, with losses in retail / wholesale trade and transportation and warehousing offset by increases in public administration and in other components of the service sector.

• Although employment in services industries was unchanged in December, the sector has provided most of the employment growth over the last year. Gains in Retail / Wholesale Trade were particularly strong. Public Administration, Education, Health Care and Social Assistance as well as other components also contributed to the increase. In the Goods-Producing sector, gains in agriculture, mining, oil and gas, and construction offset losses in manufacturing.

Economic Regions – All four economic regions of the province experienced employment growth over the past year but growth was much stronger on the Avalon Peninsula and on the South Coast – Burin Peninsula compared with other areas.

• The South Coast – Burin Peninsula recorded the fastest employment growth in the province over the past year, but the area’s unemployment rate increased as more people entered the workforce. Labour force participation rose to 58% in December, up from 47.5% a year ago. Investments in the aquaculture industry in recent years have helped revitalize the area.

• The unemployment rate for the West Coast – Northern Peninsula – Labrador region showed very little change in December compared with a year ago. A small increase in employment was matched by a similar increase in the labour force, resulting in virtually no change in the number of people unemployed in the area.

• In the Notre Dame Bay – Central - Bonavista Bay region, modest job gains combined with a shrinking labour force to reduce the unemployment rate to 18.4% in December from 23.1% a year earlier. This region has the lowest labour force participation rate in the province and was the only region to experience a declining labour force over the last year.

• The Avalon Peninsula, which includes the St. John’s area, experienced a significant improvement in labour market conditions in December relative to a year ago. Strong employment growth in the service sector, particularly in retail / wholesale trade and pubic administration, resulted in significant improvement in the unemployment rate for the region. The rate fell to 8.4% in December from 11.5% a year ago. In St. John’s the unemployment rate dropped to 6.2% from 8.2% over the same period.

LABOUR MARKET NEWS BY REGION

Avalon

Environment:

• The City of St. John’s officially opened the new recycling facility at Robin Hood Bay on December 6, 2010.   The new facility will contribute to cleaner air, cleaner water and reduced greenhouse gas emissions while advancing the goal of the Provincial Waste Management Strategy to reduce the amount of waste going into landfills by 50 per cent by 2015.  Towns that currently use the facility are Conception Bay South, Mount Pearl, Logy Bay/Middle Cove/Outer Cove, Pouch Cove, Paradise and St. John’s.   Since it began operation in October, Robin Hood Bay has already diverted 500 tons (1 million pounds) from the landfill.  The recycling facility is part of a redevelopment initiative that supports the implementation of a provincial waste management strategy.
       Source: VOCM, December 6, 2010

Mining:

• CGI Development, a division of Capital Crane is working on mega projects for Vale in Long Harbour and IOC’s expansion in Labrador West.  The company has expanded its fleet of rental equipment in St. John’s and also purchased new equipment for Labrador West.  Both companies currently employ in excess of 200 workers during peak periods.  Hiring for 2011 will be done on an as-needed basis and will be done through various local unions.
       Source:  VOCM, December 6, 2010 and CGI Development

Manufacturing:

• Northland Seafood, a family owned seafood processing company in Bay de Verde, has developed a secondary processing venture to market its crab products. The company processes crab au gratin and crab cakes in Bay de Verde and is testing the market for them through demos by the Costco chain of stores in Eastern Canada.  The processing operation will create five to seven jobs in Bay de Verde during the fishery off season, with a slight increase in staff when the fishery is operational.  Other products are currently in development such as shrimp croquettes and fish chowder and should be available early in 2011.
       Source:  The Telegram, December 8, 2010

• The Newfoundland Chocolate Company has received an investment of $91,000 from ACOA to aid with the expansion of its operation and to help the company obtain additional equipment. They also plan to make some repairs to their new manufacturing facility which is located on Duckworth Street in St. John’s. They have gone from five employees to 10 since relocating to their new premises.
       Source:  VOCM, December 2, 2010

South Coast - Burin Peninsula

Strike:

• A strike by 14 employees at Burin/Marystown Community Training Employment Board has ended. The workers, who provide workplace support to developmentally delayed adults, had been out for 13 months and were looking for a 20 per cent increase which the government had reached with other public servants a few years earlier. The agreement is retroactive to April 1, 2008 and will see the wages rise from $10.61 to $14.25 by the end of the contract.
       Source:  The Southern Gazette, December 14, 2010

West Coast – Northern Peninsula - Labrador

Construction: 

• SNC Lavalin has been awarded the contract to oversee the construction of the hydroelectric Lower Churchill project in Labrador. The contract includes engineering, procurement and construction management. The company will oversee construction at Muskrat Falls as well as the underwater link between Labrador and Newfoundland. 
       Source: CBC News, December 23, 2010

Mining:

• The Iron Ore Company of Canada is currently spending half a billion dollars in the first phase of the company's expansion. The company is working to increase their concentration of iron ore from 18 to 22 million tonnes.  IOC is working to expand and put the company in a stronger position for the future. More major investment is planned over the next few years. The company is also focusing on recruitment and access to the people it needs in its operation.
       Source: VOCM, December 6, 2010

• Vale and striking Voisey's Bay workers in Labrador are once again going back to the bargaining table. Both sides are due to meet on Wednesday January 5, 2011 in Happy Valley-Goose bay. Approximately 200 workers have been on strike since August 2009.
       Source: CBC News, December 31, 2010 

Oil and Gas:

• Nalcor Energy has recently completed drilling operations on its second well at Parson's Pond on the Great Northern Peninsula. The company ran into delays on the second of three wells when it encountered problems with faults and a leaky well plug. The company is in the process of flow testing its first well, where natural gas was discovered last year. Testing of the well will take no more than 6 weeks. Drilling is scheduled to start in late January on the company's third well.
        Source: Western Star December 9, 2010

Transportation:

• The Deer Lake Regional Airport has experienced a significant increase in passenger traffic leading up to the holiday season. Passenger traffic was up 8.8% in October, 2010 and 11.6% in November, 2010 over the previous year. Some airlines have changed to larger aircraft to accommodate the increase in traffic. Additional flights have also been added on some routes.
       Source: Telegram December 15, 2010 

Notre-Dame – Central – Bonavista Bay

Green Economy:

• A clean-up project which began last year on a former Abitibi mine site in the province has concluded.  Two sites in the Buchans area were the major sources of contamination.  They were the Mucky Ditch and the tailings spill area.  The clean-up project was valued at $9 million.
       Source: VOCM,  December 14, 2010

• Central Newfoundland Waste Management is hoping to have its regional facility operational by October 2011.  Most of the work is completed at the central site and the area cleared has a life expectancy of approximately 50 years.  The facility will serve a large area from Terra Nova to Buchans and Fogo Island.  The $82 million facility is part of 10 waste-management sites planned for the province.  The modern waste management plan will include a second-generation engineered landfill, household hazardous waste depot, construction and demolition landfill and public drop-off area for the regional site.  The material recovery, the recycling, is expected in a year or two, followed by the compost facility a year after that.  The management plan also includes seven local waste management facilities in outlying areas.  Under the provincial waste management strategy, 80% of dump sites are planned to be phased out and it is expected that the majority of incinerators in the province will also be eliminated.
       Source: The Telegram,  December 23, 2010

Green Economy and Fishery:

• Eastern Star Group Canada has received permission to construct a shrimp shell waste facility in Twillingate.  The aim will be to obtain shrimp waste material from seafood processing plants in that area and extract the protein for use in aquaculture feed.  As well, the remaining shells would be dried and shipped on a weekly basis to markets in China.  The shrimp shell waste processing facility will be constructed across from the Notre Dame Seafoods processing plant.  The building site is currently owned by the Twillingate Harbour Authority. 
       Source: The Telegram,  December 23, 2010
                     Environment and Conservation, Government of NL website:  December 23, 2010

Mining:

• Puddle Pond Resources Inc., a Stephenville-based private junior mining company is planning additional exploration in the Buchans area in 2011.  Previous drilling intersected copper and molybdenum, which is a silvery metal used to strengthen and harden steel.  The company feels the results show much potential and planning is underway for a very robust exploration program this year.  The recent drilling is known as the MolyPeak Project and is located 120 kilometres east of Stephenville, near Puddle Pond.  Puddle Pond also has an adjacent project known as Horn-Mesher.  A spokesperson for the company says that last season approximately 15 persons were employed between the two projects.  He added that this coming season they should employ about 20 persons, in addition to contactors for core drilling and geophysics. 
       Source: The Telegram:  December 30, 2010
                     Puddle Pond Resources Inc., January 6, 2011

• Triple Nine Resources of Stephenville has announced it should know the full potential of its mineral find at the Four Corners Project (Four Corners Vanadium-Titanium- Magnetite (Iron Ore)) project situated along the Burgeo Highway, by the end of 2011.  The company will conduct a $5 million drilling program in the summer of 2011 to determine the size of the iron ore, vanadium, and titanium discovery.  A spokesperson for the company says, they employed approximately 25 people over the past drilling season and are hoping to see that number increase to about 30 this coming season and in the next three to five years.  Positions include field technicians, prospectors, mineral technicians, labourers, cooks and geologists.  As well, contractors for core drilling and geophysics are also hired.  Depending on the outcome of the drilling project, the company feels their workforce could possibly double by 2012.
       Source: The Telegram, December 30, 2010
                     Triple Nine Resources, January 6, 2011

---

Prepared by:  Labour Market Information Unit of Service Canada