Monthly Labour Market Bulletin - January 2011

Labour Force Trends – Employment levels reached an all-time high in January, showing particularly strong growth since November. Employment increased by 5.6% compared to the same a year ago, which was the fastest in the country.

  • Employment increased by 4,900 or 2.2% in January compared with the previous month. Most of the gain was in full-time work. The labour force expanded at a slower pace. As a result, the unemployment rate fell to 12.4% from 14.0% a month earlier. This is the lowest unemployment rate since January 2008.
  • The bulk of the employment gains were among males 25 years and older. Youth employment showed little change. The unemployment rate for women 25 years and older is lower than the rate for men of the same age at 10.5% and 12.3% respectively. However, the gap has narrowed in recent months as the job market improves for males. The youth unemployment rate continued its downward trend in January reaching 18.0% from 18.8% a month earlier.

Seasonally Adjusted
Data

January
2011

December
2010

January
2010

Monthly Variation

Yearly Variation

 

 

Number

%

Number

%

Population 15 + (‘000)

429.1

429.0

427.8

0.1

0.0%

1.3

0.3%

Labour Force (‘000)

259.9

259.2

253.5

0.7

0.3%

6.4

2.5%

Employment (‘000)

227.8

222.9

215.7

4.9

2.2%

12.1

5.6%

     Full-Time (‘000)

194.1

191.1

184.3

3.0

1.6%

9.8

5.3%

     Part-Time (‘000)

33.6

31.8

31.4

1.8

5.7%

2.2

7.0%

Unemployment (‘000)

32.1

36.3

37.8

-4.2

-11.6%

-5.7

-15.1%

Participation Rate (%)

60.6

60.4

59.3

0.2

-

1.3

-

Unemployment Rate (%)

12.4

14.0

14.9

-1.6

-

-2.5

-

Employment Rate (%)

53.1

52.0

50.4

1.1

-

2.7

-

Note: Totals may not add due to rounding.
Source: Statistics
  Canada’s Labour Force Survey – HRSDC Table-087

  • Newfoundland and Labrador had the strongest employment growth over the past year, up 5.6% from last January. This compares to a 1.9% increase nationally. Most of the increase was in full-time employment.
  • The provincial unemployment rate of 12.4% is down considerably from 14.9% a year ago.    This is the largest decline of any province, though it remains well above the national rate of 7.8%. 

NL Employment and Unemployment rate

Employment by Industry – The Goods-Producing sector generated most of the monthly employment increase in January.  Over the past 12 months, Service industries have provided most of the increase. 

  • Manufacturing showed an increase of 1,400 jobs between December and January. However, this industry showed a decrease of 2,200 jobs when compared to January of last year. Manufacturing has been on a declining trend over a number of years.
  • In January, Construction employment increased 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. Growth has been particularly strong since June.
  • The Forestry, Fishing, Mining and Oil & Gas sector also contributed to employment gains in January, driven by growth in Mining and Oil & Gas extraction.
  • Service sector employment increased by 1,700 in January compared to the previous month. There were increases across most sectors. However, losses were notable in Accommodation and Food Services as well as Educational Services.
  • While employment gains over the past month were driven by Goods-Producing industries, the Service industries have provided most of the employment growth over the past year. Health Care and Social Assistance, Trade and Public Administration had the greatest change. In the Goods-Producing sector, increases were found in Agriculture, Construction and Forestry, Fishing, Mining and Oil & Gas. This offset losses in Manufacturing.

Seasonally Adjusted
Data ('000)

January
2011

December
2010

January
2011

Monthly Variation

Yearly Variation

 

 

 

 

Number

%

Number

%

Total

227.8

222.9

215.7

4.9

2.2%

12.1

5.6%

Goods-producing sector

49.4

46.2

46.2

3.2

6.9%

3.2

6.9%

  Agriculture

2.3

2.3

0.6

0.0

0.0%

1.7

283.3%

  Forestry, fishing, mining, oil and gas

17.1

16.4

15.2

0.7

4.3%

1.9

12.5%

  Utilities

2.3

1.8

2.0

0.5

27.8%

0.3

15.0%

  Construction

17.1

16.6

15.7

0.5

3.0%

1.4

8.9%

  Manufacturing

10.5

9.1

12.7

1.4

15.4%

-2.2

-17.3%

Services-producing sector

178.4

176.7

169.5

1.7

1.0%

8.9

5.3%

  Trade

38.0

38.2

35.6

-0.2

-0.5%

2.4

6.7%

  Transportation and warehousing

11.2

10.7

12.1

0.5

4.7%

-0.9

-7.4%

  Finance, insurance, real estate and leasing

6.4

6.1

6.5

0.3

4.9%

-0.1

-1.5%

  Professional, scientific and technical services

8.2

7.9

7.2

0.3

3.8%

1.0

13.9%

  Business, building and other support services

6.0

6.1

5.9

-0.1

-1.6%

0.1

1.7%

  Educational services

17.4

18.2

16.3

-0.8

-4.4%

1.1

6.7%

  Health care and social assistance

38.0

36.1

35.7

1.9

5.3%

2.3

6.4%

  Information, culture and recreation

8.7

8.3

7.4

0.4

4.8%

1.3

17.6%

  Accommodation and food services

12.7

13.8

13.6

-1.1

-8.0%

-0.9

-6.6%

  Other services

11.3

11.2

11.2

0.1

0.9%

0.1

0.9%

  Public administration

20.5

20.2

17.9

0.3

1.5%

2.6

14.5%

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 January 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 9.2% from 11.8% 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 more people entered the labour force. Labour force participation rose to 58.1% compared to 45.7% 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 24.6% to 20.4%. However, this is due to a significant decrease in the size of the labour force, not employment growth. This region has the lowest participation rate in the province and was the only one to register a decrease over the year.  

Three Month Moving Averages
Seasonally unadjusted data

January
2011

January
2010

Variation

January

January

Variation

 

                   Canada

Newfoundland and Labrador

Population 15 + (‘000)

27,815.4

27,470.4

345.0

428.9

427.6

1.3

Labour Force (‘000)

18,398.7

18,228.4

170.3

250.8

246.1

4.7

Employment (‘000)

17,030.7

16,740.8

289.9

216.1

206.8

9.3

     Full-Time (‘000)

13,585.6

13,383.2

202.4

182.5

174.3

8.2

     Part-Time (‘000)

3,445.1

3,357.5

87.6

33.6

32.5

1.1

Unemployment (‘000)

1,368.0

1,487.7

-119.7

34.7

39.3

-4.6

Participation Rate (%)

66.1

66.4

-0.3

58.5

57.6

0.9

Unemployment Rate (%)

7.4

8.2

-0.8

13.8

16.0

-2.2

Employment Rate (%)

61.2

60.9

0.3

50.4

48.4

2.0

 

1010 -   Avalon Peninsula

1020 -   South   Coast -   Burin   Peninsula

Population 15 + (‘000)

219.9

217.5

2.4

30.8

31.3

-0.5

Labour Force (‘000)

138.9

135.6

3.3

17.9

14.3

3.6

Employment (‘000)

126.2

119.6

6.6

13.8

11.4

2.4

     Full-Time (‘000)

106.0

100.6

5.4

12.1

9.5

2.6

     Part-Time (‘000)

20.2

19.0

1.2

1.8

1.9

-0.1

Unemployment (‘000)

12.8

16.0

-3.2

4.1

2.9

1.2

Participation Rate (%)

63.2

62.3

0.9

58.1

45.7

12.4

Unemployment Rate (%)

9.2

11.8

-2.6

22.9

20.3

2.6

Employment Rate (%)

57.4

55.0

2.4

44.8

36.4

8.4

 

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)

49.7

49.1

0.6

44.2

47.1

-2.9

Employment (‘000)

40.9

40.4

0.5

35.2

35.5

-0.3

     Full-Time (‘000)

34.9

34.6

0.3

29.5

29.6

-0.1

     Part-Time (‘000)

6.0

5.8

0.2

5.7

5.8

-0.1

Unemployment (‘000)

8.8

8.7

0.1

9.0

11.6

-2.6

Participation Rate (%)

57.0

56.2

0.8

48.6

51.5

-2.9

Unemployment Rate (%)

17.7

17.7

 0.0

20.4

24.6

-4.2

Employment Rate (%)

46.9

46.2

0.7

38.7

38.8

-0.1

 

St-John's Nfld.

 

Population 15 + (‘000)

160.3

158.6

1.7

 

  

 

Labour Force (‘000)

108.6

107.3

1.3

 

 

 

Employment (‘000)

101.5

98.7

2.8

 

 

 

     Full-Time (‘000)

85.2

82.9

2.3

 

 

 

     Part-Time (‘000)

16.3

15.7

0.6

 

 

 

Unemployment (‘000)

7.1

8.6

-1.5

 

 

 

Participation Rate (%)

67.7

67.7

 0.0

 

 

 

Unemployment Rate (%)

6.5

8.0

-1.5

 

 

 

Employment Rate (%)

63.3

62.2

1.1

 

 

 

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

Construction

  • The Town of Conception Bay South (CBS) just opened a 100-acre Gateway business park in Kelligrews with an estimated cost of $7.2 million. Site work and service installation is now underway. While Kent Building Supplies is the first tenant and will begin construction of its store in the spring, other companies have contacted the town council about setting up various other stores in the park.
    • Source : The Telegram, January 19, 2011
  • Fortis Inc. has received the approval for a renovation to the Fortis Building on Water Street in St. John’s. They had originally proposed to erect a new high-rise office complex next to the old building, but were turned down by City council. Refurbishment of the building is expected to start in April or May.
    • Source : CBC News, January 5, 2011
  • The Vale Inco project in Long Harbour is expected to see significant growth this year, as much of the work is moving to the infrastructure stage. Many more trades are getting involved in the project. Work is continuing on a new 47-room staff house-motel and a 10,000 square foot training centre. There have been new businesses move into the area and new home construction continues to grow.
    • Source : VOCM, January 6, 2011
  • A California-based engineering company, Jacobs Engineering Group, has secured a three-year contract to manage a planned maintenance shutdown at the Come By Chance oil refinery. The refinery has allotted $70 million for the maintenance shutdown as part of the $190 million capital projects planned for the refinery this year.
    • Source : The Telegram, January 5, 2011
  • The owners of the Keg Restaurant have submitted a plan to the city to build a 16,000-square-foot two-storey building at a cost of $10 million which would house two new restaurants. While the plan has not received final approval from council, the developers have secured a long term lease with the St. John’s Port Authority who owns the land. If it does get the green light, construction is estimated to create 100 man years of employment and approximately 250 full and part-time jobs once it is built.
    • Source : The Telegram, January 27, 2011

Manufacturing

  • Workers at Purity Factories in St. John’s went back to work in early January after a four-month lockout. The 50 workers have accepted a wage increase of approximately $3 per hour over a five-year contract.
    • Source : CBC News, January 5, 2011

Transportation:

  • The Metrobus strike has ended with about 100 bus drivers and mechanics back to work on January 31, having been on strike for almost three months. The major obstacle in the dispute was a demand from the company that new employees pay a bigger share of the cost of health care benefits. While they had to concede on that matter, they accepted a 20.5 per cent raise over five years plus a signing bonus.
    • Source : CBC News, January 27, 2011.


South Coast - Burin Peninsula

Construction

  • The contract for the design of six new ferries for the province has been awarded to Fleetway Inc. Five of the new vessels will replace ferries currently serving the south coast of Newfoundland while the sixth new vessel will serve southern Labrador. This design work is expected to be completed by early spring 2012. Within the next few months the call for expressions of interest to construct the vessels will be issued. This project will benefit the local industry and provide local employment.
    • Source : The Gulf News, January 17, 2011

Mining: 

  • Castillian Resources Corp. has secured $5.3 million to do more exploratory work at the former Hope Brook gold mine. The mine closed in 1997, having operated for 10 years and producing over 750,000 ounces of gold. With this investment the company is hoping to find a significant deposit which would lead to potential mine development.
    • Source : The Telegram, January 17, 2011 


West Coast – Northern Peninsula - Labrador

Education

  • The College of the North Atlantic in Stephenville will be the location of a new training unit for the provincial Dept of Child, Youth, and Family Services.  All training will be mandatory for the province's social workers. The new unit will staff 5 positions; a manager, three CYFS department trainers and a program developer. No date has been given for the start of the programs.
    • Source : Western Star, le 29 janvier 2011

Health

  • The provincial government announced in January that a new $7.25 million health centre will be built in Flower's Cove. The Strait of Belle Isle Health Centre will provide improved health services to residents of the area. Construction will begin in the spring. The centre is expected to open in December 2012. 
    • Source : The Telegram, January 29, 2011

Mining

  • After 18 months on strike, Voisey's Bay workers have reached a tentative agreement on a new contract. The 130 workers have been on strike since August 2009. During that time, replacement workers were brought in to operate the mine. The striking workers will now vote on the tentative agreement and the result of the vote should be known early in February.
    • Source : CBC News, January 29, 2011


Notre-Dame – Central – Bonavista Bay
 

Health:

  • The provincial government has announced funding in the amount of $475,600 for renovations to the Dr. G.B. Cross Memorial Hospital in Clarenville. Renovations include a new special procedure room and endoscopy suite and two day surgery rooms. As well, a recovery room will be relocated and expanded and there will be reconfiguration of the in-patient area. The changes will allow for four new inpatient beds and improved access to outpatient surgical services.
    • Sources : VOCMJanuary 28, 2011
          
                 The Telegram, January 28, 2011

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