Monthly Labour Market Bulletin - January 2010
LABOUR FORCE TRENDS
- From December 2009 to January 2010, the unemployment rate decreased from 15.2% to 14.9%. Over the same period the national unemployment rate decreased to 8.3% from 8.4%.
- Employment increased by 1,400 (0.6%) from December to January.
- Full-time employment increased by 300 (0.2%) in January, while part-time employment increased by 1,100 (3.6%).
- The labour force grew by 800 from December to January.
- Year over year, the unemployment rate increased from 14.6% to 14.9%.
- From January 2009 to January 2010, the labour force of Newfoundland and Labrador increased by a total of 4,600 (1.8%), while the number employed increased by 3,300 (1.5%).
| Seasonally Adjusted Data | Jan- 10 |
Dec-09 | Jan-09 | Monthly Variation Number % |
Yearly Variation Number % |
||
|---|---|---|---|---|---|---|---|
| Population 15 + ('000) | 430.8 | 430.5 | 427.8 | 0.3 | 0.1 | 3.0 | 0.7 |
| Labour force ('000) | 256.8 | 256.0 | 252.2 | 0.8 | 0.3 | 4.6 | 1.8 |
| Employment ('000) | 218.6 | 217.2 | 215.3 | 1.4 | 0.6 | 3.3 | 1.5 |
| Full-time ('000) | 187.2 | 186.9 | 185.8 | 0.3 | 0.2 | 1.4 | 0.8 |
| Part-time ('000) | 31.4 | 30.3 | 29.5 | 1.1 | 3.6 | 1.9 | 6.4 |
| Unemployment ('000) | 38.2 | 38.8 | 36.9 | -0.6 | -1.5 | 1.3 | 3.5 |
| Unemployment Rate | 14.9 | 15.2 | 14.6 | -0.3 | - | 0.3 | - |
| Participation Rate | 59.6 | 59.5 | 59.0 | 0.1 | - | 0.6 | - |
| Employment Rate | 50.7 | 50.5 | 50.3 | 0.2 | - | 0.4 | - |
Note(s): Total may not add due to rounding |
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Source: Statistics Canada's Labour Force Survey |
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- In 2008, employment levels peaked in May at 225,900. While levels continue to decline throughout 2009, employment reached its highest level at 217,200 in December and climbed to 218,600 in January 2010.
- In 2008, unemployment levels hovered between 12.3% and 13.8% with the lowest level reached in January. This unemployment rate was the lowest since the 1970’s. However in 2009, the unemployment rate trended upwards ranging from a low of 14.4% in March to a high of 17.0% in July and October.
Employment by Industry – Employment gains in the Goods-Producing and Services sector
- The goods-producing sector showed an employment increase of 1.3% from December 2009 to January 2010.
- The largest increase in employment was in Manufacturing at 11.8%.The services-producing sector showed an employment decrease of 0.3% from November 2009 to December 2009.
- The goods-producing sector declined by 0.4% from January 2009 to January 2010.
- Agriculture experienced the largest decrease (28.6%) over this period.
- The services-producing sector showed an employment increase of 0.5% from December 2009 to January 2010.
- The services-producing sector increased by 2.1% from January 2009 to January 2010.
- The Business, Building & Other Support posted the largest decrease in employment of 21.8%.
- The largest increases in employment were in the Transportation & Warehousing Sector (16.2%) and in Accommodation & Food Services (12.1%).
Seasonally Adjusted Data |
Jan- 10 |
Dec- 09 |
Jan- 09 |
Monthly Variation Number % |
Yearly Variation Number % |
||
|---|---|---|---|---|---|---|---|
| Total | 218.6 | 217.2 | 215.3 | 1.4 | 0.6 | 3.3 | 1.5 |
| Goods-producing sector | 46.2 | 45.6 | 46.4 | -2.1 | 1.3 | -0.2 | -0.4 |
| Agriculture | 0.5 | 0.7 | 0.7 | -0.3 | -28.6 | -0.2 | -28.6 |
| Forestry, fishing, mining, oil and gas | 15.2 | 14.7 | 16.6 | -1.1 | 3.4 | -1.4 | -8.4 |
| Utilities | 2.0 | 2.0 | 1.9 | -0.7 | 0.0 | 0.1 | 5.3 |
| Construction | 15.2 | 16.3 | 14.4 | 0.4 | -6.7 | 0.8 | 5.6 |
| Manufacturing | 13.3 | 11.9 | 12.9 | -0.6 | 11.8 | 0.4 | 3.1 |
| Services-producing sector | 172.4 | 171.5
|
168.9 | -1.9 | 0.5 | 3.5 | 2.1 |
| Trade | 36.3 | 34.8 | 34.3 | 0.3 | 4.3 | 2 | 5.8 |
| Transportation and warehousing | 12.2 | 12.5 | 10.5 | 0.0 | -2.4 | 1.7 | 16.2 |
| Finance, insurance, real estate and leasing | 7.0 | 7.1 | 7.0 | 0.2 | -1.4 | 0.0 | 0.0 |
| Professional, scientific and technical services | 7.2 | 8.2 | 7.7 | 0.3 | -12.2 | -0.5 | -6.5 |
| Business, Building & Other Support | 6.1 | 5.0 | 7.8 | -1.1 | 22.0 | -1.7 | -21.8 |
| Educational services | 16.9 | 17.7 | 18.4 | -0.3 | -4.5 | -1.5 | -8.2 |
| Health care and social assistance | 36.0 | 35.7 | 34.8 | -0.1 | 0.8 | 1.2 | -8.2 |
| Information, culture and recreation | 7.5 | 8.0 | 7.6 | -0.4 | -6.3 | -0.1 | -1.3 |
| Accommodation and food services | 13.9 | 14.2 | 12.4 | -0.9 | -2.1 | 1.5 | 12.1 |
| Other services | 11.4 | 10.9 | 11.7 | -0.6 | 4.6 | -0.3 | -2.6 |
| Public administration | 17.9 | 17.5 | 16.7 | 0.8 | 2.3 | 1.2 | 7.2 |
Note: Total may not add due to rounding. |
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Labour Market News by Industry
Fishery
The upcoming 2010 harvest has a number of problems. Some major players are saying a timely start to the fishery is unlikely. This is the province's most important fishery, which sustains about 3,000 fishing enterprises and at least 30 fish processing plants.
Mining
As of January 28, 2010, most of the night shift at Vale Inco in Long Harbour have been lay-off. The only people left on Night Shift are the mechanics, crusher operators, welders and 15 equipment operators. This is not a temporary lay-off, such as the Christmas break. Anyone who is laid off and has worked over 42 days will go to the bottom of the Dispatch List. There may be some more lay-offs upcoming on Day Shift as well.
Meanwhile, according to Vale Inco officials, the US$2.8 billion construction of a nickel processing plant near Long Harbour, Placentia Bay is proceeding on schedule for completion by February 28, 2013. The terrain and unusually wet conditions last fall posed some challenges for contractors at the site, but the project is said to remain on schedule.
Vale Inco states that the vast majority of employment benefits from the project are staying in this province. Employment levels have varied in recent months, but about 500 people are now employed by various contractors at the Long Harbour site, and about 80 of those are residents of the area. There are another 350 people working on engineering, procurement and operations planning at Vale Inco offices in St. John's, and at Flour Canada Ltd. offices in Vancouver. Flour is managing the project on behalf of Vale Inco.
Employment figures are expected to grow substantially in the coming months as site development work concludes and a new phase – building construction and development at the port – get underway. Vale Inco says there's been no problem attracting skilled labour for the project.
Priorities for this year include the building of a construction camp capable of accommodating 1,000 workers, along with construction offices, and the installation of temporary hydroelectric power services. At the port, construction will also begin on a new dock, and there will be dredging at the wharf.
The Town of Long Harbour-Mount Arlington Heights is also seeing some tangible benefits from the project. As part of a multimillion-dollar agreement with the town, a fire hall is under construction and a new pumper truck is expected to arrive in the spring. A contract for the construction of a new training centre for employees of the nickel plant will also be awarded soon. This large facility will be located in the town and will be turned over to the municipality in several years. The town will use it as a town hall and community centre.
Metal Creek Resources, a Gander-based company, has made a gold discovery along the southwest coast, about 50 kilometres north of Hope Brook Goldmine. Metal Creek Resources recently took over the exploration from the previous prospectors. In late December they drilled a second series of 25 holes and are now awaiting those results. A provincial government program allowing a junior exploration company to collect a grant for half the money it puts in the ground – up to $100,000 – provides an incentive for those companies to do some exploration.
Anaconda Mining recently received a $2.5 million in debenture offers to go towards the cost of completing the expansion of the Pine Cove mill on the Baie Verte Peninsula. The expansion will allow for the change over from a gravity flow circuit to a modern flotation circuit and will increase production. It is likely that there will be increased employment of Anaconda’s workforce which presently stands at 24, plus a number of contracted jobs. Once the expansion is complete an additional nine people may be hired and another 11 contracted workers. Construction of the Pine Cove mine began in 2007, and production commenced in 2008; the first gold pour was July 2008.
Forestry
The Atlantic Canada Opportunities Agency has contributed $1.18 million to the Northern Peninsula Forest Resource Association to develop a wood lot on the Northern Peninsula. The money is to be used for the wood lot as well as to purchase wood to convert to pellets. This work will help ensure that forestry workers, who would have left to look for work, can stay in the area.
Retail Sales
The Sobeys supermarket in Marystown is hiring additional workers in anticipation of increased business now that the Dominion store in the town has shut down. They are hiring for a variety of positions in all departments at this store, and this month held a job fair for all who were interested in obtaining work with them. It is speculated that a new building currently under construction adjacent to the Peninsula Mall will house a new Sobeys store.
Manufacturing
Workers at the Kruger Inc. Pulp and Paper Mill in Corner Brook have been asked to provide concessions to the company. The major concession - a 10% reduction in wages - is to be repaid to the workers by the company at a later date. All unions at the mill have been asked to vote on the request by the end of January. The result of the vote and the future direction of the company will be announced shortly after that time. The company continues to struggle with the ongoing challenges in the newsprint industry.
Health Care
According to the latest statistical analysis released by the Canadian Institute for Health Information (CIHI), full-time nursing positions are higher in Newfoundland and Labrador than they are nationally (74% provincially and 58% nationally). By offering full-time positions as a strong recruitment and retention strategy has had a positive impact on keeping nurses in the province. The number of practicing registered nurses in this province increased by 150 – up 2 percent from 2007 for a total of 5,724 in 2008. The numbers are gradually increasing although there is still a shortage of nurses in the province. In 2008, 95 percent of nurses in Newfoundland and Labrador were female and the average age of RNs was 43 years old.
Transportation
Porter Airlines has reported a successful business expansion since they started operations in Newfoundland on October 5, 2009. The increased flights (four roundtrips daily with connectors to Ottawa and Toronto) from St. John's to Halifax flights have been busy with high demand from both business and leisure travellers. Porter is very competitive in the marketplace. With increased travel availability, airfares have been reduced, benefiting travellers in the province. Porter has also created 30 full-time jobs at the airport in addition to other spin-offs in the accommodations and service sector.
The Newfoundland & Labrador Labour Market Bulletin is a monthly report produced by Labour Market Information Analysts, Service Canada.
For further information contact:
Email: nl-lmi-imt@servicecanada.gc.ca
Note: In preparing this bulletin, Service Canada has taken care to provide clients with labour market information from reliable sources that is timely and accurate at the time of publication. Since labour market conditions are dynamic, some of the information presented here may have changed since the bulletin was published. Readers are encouraged to also refer to other sources for additional information on the local economy and labour market. Information contained in this bulletin does not necessarily reflect official policies of Service Canada.