Newfoundland and Labrador - Labour Market Bulletin - February 2011

Labour Force Trends – Employment levels were slightly below January’s all-time high.  Growth has been particularly strong in Newfoundland and Labrador since November.  Employment levels were 5.0% higher than they were in February a year ago, which was the fastest rate of employment growth in the country.

  • Employment decreased by 100 in February compared to the previous month, while the labour force expanded by 1,000 to reach a record high.   As a result, the unemployment rate increased to 12.8% from 12.4% a month earlier.  
  • Youth employment declined slightly in February.  However, levels remain strong.  There was notable job growth for women 25 and older, as employment levels were at a record high.  Males of the same age had a slight decline in employment from their post-recession high in January.  Over the year, employment levels increased for all three groups.

Seasonally Adjusted
Data

February

January

February

Monthly Variation

Yearly Variation

 

2011

2011

2010

Number

%

Number

%

Population 15 + (‘000)

429.2

429.1

427.9

0.1

0.0%

1.3

0.3%

Labour Force (‘000)

260.9

259.9

254.6

1.0

0.4%

6.3

2.5%

Employment (‘000)

227.7

227.8

216.8

-0.1

0.0%

10.9

5.0%

     Full-Time (‘000)

195.9

194.1

185.9

1.8

0.9%

10.0

5.4%

     Part-Time (‘000)

31.8

33.6

30.8

-1.8

-5.4%

1.0

3.2%

Unemployment (‘000)

33.3

32.1

37.8

1.2

3.7%

-4.5

-11.9%

Participation Rate (%)

60.8

60.6

59.5

0.2

-

1.3

-

Unemployment Rate (%)

12.8

12.4

14.8

0.4

-

-2.0

-

Employment Rate (%)

53.1

53.1

50.7

0.0

-

2.4

-

Note: Totals may not add due to rounding.

           

Source: Statistics Canada’s Labour Force Survey – HRSDC Table-087

       
  • Newfoundland and Labrador had the strongest rate of employment growth in the country over the past year, up 5.0% from last February.  This compares to a 1.9% increase nationally.  Most of the increase was in full-time employment.
  • The provincial unemployment rate of 12.8% is down considerably from 14.8% a year ago.  This is the largest decline of any province, though the unemployment rate remains well above the national rate of 7.8%. 

Newfoundland and Labrador Employment and Unemployment Rate

Employment by Industry – A small increase in employment in the Service-Producing sector was offset by a slight decline in Goods-Producing sector employment.  Over the past 12 months, Service industries have provided most of the increase in jobs.  However, Goods-Producing employment grew at a faster rate. 

  • Manufacturing showed an increase of 1,000 jobs between January and February.  Growth since November has brought Manufacturing employment back to levels not seen since January 2010. 
  • In February, Construction employment matched the record high set in October 2009.  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 June.
  • Retail and Wholesale Trade added 2,400 jobs in February.  Trade employment is up by more than 15% from a year ago as the economy has improved.
  • Compared to a year ago, the Service industries have provided most of the province’s employment growth.  The growth in the Service sector was led by Retail and Wholesale Trade as well as Public Administration.  In the Goods-Producing sector, increases were found in Agriculture, Construction and Manufacturing.  Forestry, Fishing, Mining and Oil & Gas were down slightly.

Seasonally Adjusted

Data ('000)

February

January

February

Monthly Variation

Yearly Variation

 

2011

2011

2010

Number

%

Number

%

Total

227.7

227.8

216.8

-0.1

0.0%

10.9

5.0%

Goods-producing sector

48.8

49.4

45.0

-0.6

-1.2%

3.8

8.4%

  Agriculture

2.0

2.3

0.6

-0.3

-13.0%

1.4

233.3%

  Forestry, fishing, mining, oil and gas

15.2

17.1

15.9

-1.9

-11.1%

-0.7

-4.4%

  Utilities

2.2

2.3

2.4

-0.1

-4.3%

-0.2

-8.3%

  Construction

17.9

17.1

15.2

0.8

4.7%

2.7

17.8%

  Manufacturing

11.5

10.5

10.8

1.0

9.5%

0.7

6.5%

Services-producing sector

178.9

178.4

171.8

0.5

0.3%

7.1

4.1%

  Trade

40.4

38.0

35.0

2.4

6.3%

5.4

15.4%

  Transportation and warehousing

11.4

11.2

12.5

0.2

1.8%

-1.1

-8.8%

  Finance, insurance, real estate and leasing

6.2

6.4

7.8

-0.2

-3.1%

-1.6

-20.5%

  Professional, scientific and technical services

8.4

8.2

7.1

0.2

2.4%

1.3

18.3%

  Business, building and other support services

5.8

6.0

6.4

-0.2

-3.3%

-0.6

-9.4%

  Educational services

18.0

17.4

17.7

0.6

3.4%

0.3

1.7%

  Health care and social assistance

36.3

38.0

36.5

-1.7

-4.5%

-0.2

-0.5%

  Information, culture and recreation

8.1

8.7

7.3

-0.6

-6.9%

0.8

11.0%

  Accommodation and food services

12.4

12.7

13.6

-0.3

-2.4%

-1.2

-8.8%

  Other services

11.8

11.3

10.4

0.5

4.4%

1.4

13.5%

  Public administration

20.1

20.5

17.6

-0.4

-2.0%

2.5

14.2%

Notes: '--' indicates number suppressed due to high sample variance.
                Totals may not add due to rounding.
Source: Statistics Canada’s Labour Force Survey – HRSDC Table-088.                         

Economic Regions – Over the past year, employment growth was strongest in the Avalon Peninsula as well as the South Coast - Burin region.

  • The Avalon Peninsula, which includes the St. John’s area, experienced a significant improvement in labour market conditions in February compared to a year ago.  Strong employment growth in the Service sector, particularly in Retail / Wholesale Trade, Public Administration and Educational Services, lowered the unemployment rate considerably.  The rate fell to 9.1% from 12.0% a year ago.  In St. John’s the unemployment rate dropped to 6.5% from 8.0% over the same period.
  • The South Coast – Burin Peninsula region had the fastest employment growth in the province over the past year.  However, the area’s unemployment rate increased as the size of the labour force grew faster than employment.  Labour force participation rose to 57.8% compared to 45.0% a year ago.  The growing aquaculture industry has been a key contributor to the area’s resurgence.
  • In the West Coast – Northern Peninsula – Labrador area, labour market conditions have not changed notably over the past year.  The unemployment rate is unchanged from a year ago, with slight growth in the labour force being matched by a small employment increase.  As a result, the number of people unemployed is virtually unchanged over this period.
  • The unemployment rate for the Notre Dame – Central – Bonavista Bay region has dropped over the past year, from 26.2% to 20.6%.  However, this is mainly due to a significant decrease in the size of the labour force, not employment growth.  This region has the lowest labour force participation rate in the province and was the only one to register a decrease over the year. 

Three Month Moving Averages
Seasonally unadjusted data

February
2011

February
2010

Variation

February
2010

February
2010

Variation

Canada

Newfoundland and Labrador

Population 15 + (‘000)

27,840.7

27,496.9

343.8

429.1

427.8

1.3

Labour Force (‘000)

18,388.1

18,169.8

218.3

249.3

244.1

5.2

Employment (‘000)

16,968.4

16,650.9

317.5

214.7

204.0

10.7

     Full-Time (‘000)

13,494.5

13,294.1

200.4

181.0

172.0

9.0

     Part-Time (‘000)

3,473.9

3,356.8

117.1

33.7

32.0

1.7

Unemployment (‘000)

1,419.7

1,518.9

-99.2

34.7

40.1

-5.4

Participation Rate (%)

66.0

66.1

-0.1

58.1

57.1

1.0

Unemployment Rate (%)

7.7

8.4

-0.7

13.9

16.4

-2.5

Employment Rate (%)

60.9

60.6

0.3

50.0

47.7

2.3

 

1010 - Avalon Peninsula

1020 - South Coast - Burin Peninsula

Population 15 + (‘000)

220.1

217.7

2.4

30.8

31.3

-0.5

Labour Force (‘000)

139.5

135.6

3.9

17.8

14.1

3.7

Employment (‘000)

126.8

119.2

7.6

13.9

11.4

2.5

     Full-Time (‘000)

107.0

100.4

6.6

12.1

9.4

2.7

     Part-Time (‘000)

19.8

18.9

0.9

1.8

2.0

-0.2

Unemployment (‘000)

12.7

16.3

-3.6

3.9

2.8

1.1

Participation Rate (%)

63.4

62.3

1.1

57.8

45.0

12.8

Unemployment Rate (%)

9.1

12.0

-2.9

21.9

19.9

2.0

Employment Rate (%)

57.6

54.8

2.8

45.1

36.4

8.7

 

1030 - West Coast - Northern Peninsula - Labrador

1040 - Notre Dame - Central Bonavista Bay

Population 15 + (‘000)

87.2

87.4

-0.2

91.0

91.4

-0.4

Labour Force (‘000)

48.7

48.3

0.4

43.3

46.1

-2.8

Employment (‘000)

39.6

39.4

0.2

34.4

34.0

0.4

     Full-Time (‘000)

33.7

33.8

-0.1

28.2

28.5

-0.3

     Part-Time (‘000)

5.9

5.6

0.3

6.2

5.5

0.7

Unemployment (‘000)

9.1

8.9

0.2

8.9

12.1

-3.2

Participation Rate (%)

55.8

55.3

0.5

47.6

50.4

-2.8

Unemployment Rate (%)

18.7

18.4

0.3

20.6

26.2

-5.6

Employment Rate (%)

45.4

45.1

0.3

37.8

37.2

0.6

 

St-John's Nfld.

 

Population 15 + (‘000)

160.5

158.7

1.8

     

Labour Force (‘000)

109.6

107.0

2.6

     

Employment (‘000)

102.6

98.5

4.1

     

     Full-Time (‘000)

86.7

82.8

3.9

     

     Part-Time (‘000)

15.9

15.6

0.3

     

Unemployment (‘000)

7.1

8.6

-1.5

     

Participation Rate (%)

68.3

67.4

0.9

     

Unemployment Rate (%)

6.5

8.0

-1.5

     

Employment Rate (%)

63.9

62.1

1.8

     

Notes: '--' indicates number suppressed due to high sample variance.
              Totals may not add due to rounding.
Source: Statistics Canada’s Labour Force Survey – HRSDC Table SGEODEM.

LABOUR MARKET NEWS BY REGION

Avalon Peninsula 

Construction:

A $150 Million expansion for the St. John’s Airport is set to be launched.  This 10 year project will be in 2 phases with planning for the first phase to begin this year and construction of that phase to be completed in 2015.   This plan will see an expansion of the terminal, a new four lane access road, extra parking, new passenger bridges and upgrades to airfield and apron.
o       Source: The Telegram, Feb 3, 2011

Retail:

CD Plus closed its store in St. John’s.  The numbers of staff affected are not known.
o       Source: The Telegram, Feb 8, 2011

Costco has received approval from St. John’s City Council to construct a gas bar on the east end of the city which will contain 8-10 pumps.  Construction is expected to begin soon.
o       Source: The Telegram, Feb 15, 2011

A new Burger King restaurant is expected to open on Torbay Road in St. John’s.  This project has the green light from council and will create 100 full and part time jobs. 
o       Source: The Telegram, Feb 16, 2011

Aerospace:

Gladstone Systems Solutions, a company serving the aerospace and defence industry, is receiving $500,000 in funding from the Provincial Government to expand their operations in NL.  This funding will create 30 new engineering and computer science positions over the next 5 years.  They plan to enhance safety and efficiency in the aerospace industry by developing low cost training devices and software applications.
o       Source: The Telegram, Feb 11, 2011

Mining:

A Mount Pearl company is playing a key role in IOC’s expansion.  CGI Development, a division of Capital Crane, is currently completing the construction of an additional 261 rooms at the IOC camp in Western Labrador and will be responsible for the operations of these additional rooms once construction is completed.  They are also purchasing new rental equipment which will be added to the equipment they currently use.
o       Source: VOCM News, Feb 14, 2011

Manufacturing:

Labatt Breweries is investing $3.5 million in its St. John’s operation for capital expenditures this year.  Environmental improvements will see more material being recycled and less waste water, upgraded packaging equipment and quality and control initiatives.
o       Source: VOCM News, Feb 17, 2011

Oil and Gas:

Memorial University has secured funding to build an offshore research and development centre. This project will cost $6.8 million and take 24 months to complete.   $2 million has been provided by Suncor Energy and approximately $4.8 million from a provincial Crown corporation called Research and Development Corp. The expansion on the S. J. Carew building will house 100 researchers when completed.
o       Source: The Telegram, Mar 1, 2011

South Coast – Burin

Aquaculture:

The aquaculture industry is alive and well in the province, particularly in rural areas.  Last year alone aquaculture was valued at approximately $100 million in the province of Newfoundland and Labrador.  The industry has had a great effect on employment in smaller communities and has created over 600 jobs in the Coast of Bays region alone.
o       Source:  VOCM News, February 25, 2011

Government Services:

The Provincial government has officially opened a Career Work Centre in Marystown.  The centre is among fourteen planned for the province.  The Career Centres are meant to provide labour market and employment services to job seekers and employers.  Staff of the centre will be available to answer questions and help persons with employment searches.
o       Sources:  VOCM, February 21, 2011
o                       News Release - Provincial Government (Human Resources Labour and Employment), February 21, 2011

Strike:

Strike talks between the Fishermen, Food and Allied Workers’ Union (FFAW) representing about ninety trawlermen on the Burin Peninsula and Ocean Choice International have broken off.  Wages have been the big issue in the dispute.  Both the Marystown and Fortune fishplants have been closed due to the trawlermen strike and more than 200 fish processors have been laid off.  Picket lines were set up at the plant in Marystown on February 5, 2011.
o       Sources:  The Telegram, February 2, 2011
o                       CBC, February 10 & 14, 2011

West Coast-Northern Peninsula-Labrador

Health:

The federal government has announced more than $1.2 million in funding to help start the "Mapping the Way in Labrador Aboriginal Communities" project in Happy Valley-Goose Bay. The project is designed to provide at-risk individuals with alternatives to a life of crime, substance abuse, and violence. A clinical team will train and support community wellness teams to deliver interventions in families, schools and workplaces in the area.
o       Source: VOCM, February 22, 2011

$55 million has been allotted by the province for continued work this year on the new hospital in Labrador West. The work will complete the roof, windows, floors, landscaping and roadwork. Water, sewer, electrical systems and siding will also be installed. The building is due to be completed by late 2013.
o       Source: Western Star, February 23, 2011

A tender has been called for the construction of a new medical clinic in Jeffrey's. The building will be built in the same location as the existing clinic. Construction is set to begin in the spring of 2011.
o       Source: NL Provincial Government News Release, February 10, 2011

Education:

The federal and provincial governments have invested more than $600,000 in College of the North Atlantic campuses in Labrador. The Labrador City campus will receive funding to assist with the purchase of specialty mining simulation equipment. The Happy Valley-Goose Bay campus will receive funding to purchase equipment for its power line technician program.
o       Source: NL Prov Gov't News Release, February 22, 2011

Retail:

CD Plus closed its store in Corner Brook in February. A company spokesperson stated the closure is part of a process to shut down non-profitable operations.
o       Source: Western Star, February 25, 2011

Oil and Gas:

Canadian Imperial Venture Corporation (CIVC) continues to drill its well on the Port au Port peninsula. Work on the well is expected to be completed by mid March, 2011. The company has spent more than $6 million on drilling this well.
o       Source: VOCM, February 23, 2011

Nalcor and its partners have dropped their plans to drill a third well in the Parson's Pond area. High costs and unfavorable results from its two previous wells led to the decision. The company will now take time to re-evaluate its data from the two wells before deciding on how it will proceed.
o       Source: Western Star February 18, 2011

Construction:

The provincial government has recently called for tenders for additional paving of the Trans-Labrador Highway. The contracts are to be in place by the end of March to allow crews to begin their work as soon as weather permits. The first section begins west of Happy Valley-Goose Bay and continues 80 kilometres toward Churchill Falls. The second part is an 80-kilometre stretch near the Ranger Lake highway depot toward Churchill Falls. The hard-surfacing of Phase 1 of the Trans Labrador highway is expected to be completed by 2014.
o       Source: VOCM,  February 23, 2011

Mining:

The Iron Ore Company of Canada (IOC) is restarting the second phase of its expansion program in western Labrador. The second part of the three-phase expansion will start immediately because of the short construction season in western Labrador. During the second phase, which has a cost of $289 million, the company is developing new facilities and installing new mining equipment and rail cars in Labrador City and Quebec.
o       Source: CBC News, February 8, 2011

Notre-Dame – Central – Bonavista Bay

Construction:

Pacrim Hospitality Services Inc. has decided against a plan to build a new hotel on the Exploits River.  Although they have not given the reason for the change in plans, there is speculation the Grand Falls-Windsor site may be contaminated.  The Town will now look at finding out for sure if there is any contamination in the area.  In the meantime, they will work with the company to look at other possible building sites in Grand Falls-Windsor.
o       Source:  The Telegram, February 22, 2011

Mining:

Mining in Newfoundland and Labrador has become quite a large industry.  In Central Newfoundland alone there are several companies involved in mining related activities.  Areas include Baie Verte, Springdale, Glenwood, Badger, Buchans and Millertown.  More than 5,000 people work in the mining industry in the province.
o       Source:  The Telegram, February 16, 2011

Health:

The Newfoundland and Labrador Nurses’ Union says the Dr. G.B. Cross Memorial Hospital in Clarenville is experiencing a nursing shortage with more than 20 nurses needed.  Eastern Health, however, says that as the front-line position vacancies cause them the most concern.  The hospital currently has six permanent front-line nursing positions which are not filled, along with just over three ‘temporary’ nursing vacancies.  They also have several float positions vacant.
o       Source:  The Telegram, February 12, 2011 

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