Monthly Labour Market Bulletin - June 2010


LABOUR FORCE TRENDS - Employment declined from the all-time high recorded in May but remains ahead of last year’s level.

  • Employment returned to its usual pattern in June after an early start to some seasonal industries led to an unusually large increase in May.
  • Despite June job losses, employment growth since July 2009 has equaled 2.9%, the second fastest of all provinces and well ahead of the national average of 2.4%.
Seasonally Adjusted Data June 2010 May 2010 June
2009
Monthly Variation
Number  %
Yearly Variation
Number %
Population 15 + ('000) 431.6 431.6 428.5 0.0 0.0 % 3.1 0.7 %
Labour force ('000) 256.5 263.1 254.0 -6.6 -2.5 % 2.5 1.0 %
Employment ('000) 218.8 226.9 214.4 -8.1 -3.6 % 4.4 2.1 %
     Full-time ('000) 186.3 193.8 183.0 -7.5 -3.9 % 3.3 1.8 %
     Part-time ('000) 32.5 33.1 31.4 -0.6 -1.8 % 1.1 3.5 %
Unemployment ('000) 37.7 36.2 39.6 1.5 4.1 % -1.9 -4.8 %
Participation Rate 59.4 61.0 59.3 -1.6   0.1  
Unemployment Rate 14.7 13.8 15.6 0.9   -0.9  
Employment Rate 50.7 52.6 50.0 -1.9   0.7  

Note(s): Total may not add due to rounding

Source: Statistics Canada's Labour Force Survey

 

  • The unemployment rate increased to 14.7% in June, a rate similar to those recorded earlier this year but an improvement from a year ago. Nationally the unemployment rate fell to 7.9%.
  • Last month’s job losses occurred mostly among youth (15 – 24) and adult men (25+). The unemployment rates for these groups rose to 23.5% and 16.3% respectively.  The rate for adult women (25+) declined slightly to 10.3%.  At 22.0%, the unemployment rate for students improved from the previous month but is up significantly from a year ago. 

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Employment by Industry – Employment in both the Goods Producing and Service Sectors declined in June; Service Sector jobs are up compared to last year.

  • In the Good-Producing Sector, employment in fishing and fish processing declined after a strong start to the season in May.  The number of jobs in mining and oil and gas was unchanged last month but up compared to a year ago.  Construction jobs are down compared to the strong showing of June, 2009.
  • Employment in the Service-Producing industries declined in June as the number of jobs in accommodation and food services fell from the exceptionally high level recorded in May.
  • Service Sector employment is up compared to a year ago given strength in Retail / Wholesale trade, Transportation and Warehousing, Healthcare and Social Assistance, Public Administration as well as Other Services.  Gains in these areas more than offset losses in Management, Administration and Other Support; Information, Culture and Recreation as well as Professional, Scientific and Technical Service.

Seasonally Adjusted Data
June
2010
May
2010
June
2009
Monthly Variation
Number %
Yearly Variation
Number %
Total 218.8 226.9 214.4 -8.1 -3.6% 4.4 2.1%
Goods-Producing Sector 44.1 46.6 45.1 -2.5 -5.4% -1.0 -2.2%
 Agriculture  1.4 1.7 0.6 -0.3 -17.6% 0.8 133.3%
 Forestry, Fishing, Mining, Oil and Gas  15.5 16.7 14.4 -1.2 -7.2% 1.1 7.6%
Utilities  2.1 2.1 2.4 0.0 0.0% -0.3 -12.5%
Construction  15.0 15.5 17.0 -0.5 -3.2% -2.0 -11.8%
Manufacturing  10.1 10.6 10.6 -0.5 -4.7% -0.5 -4.7%
Services-Producing Sector  174.7 180.4 169.3 -5.7 -3.2% 5.4 3.2%
Trade  37.3 36.8 32.6 0.5 1.4% 4.7 14.4%
Transportation and Warehousing  11.8 12.7 10.5 -0.9 -7.1% 1.3 12.4%
Finance, Insurance, Real Estate and Leasing  9.0 8.3 9.0 0.7 8.4% 0.0 0.0%
Professional, Scientific and Technical Services  6.3 6.7 7.7 -0.4 -6.0% -1.4 -18.2%
Management, Administrative & Other Support  4.9 5.5 8.6 -0.6 -10.9% -3.7 -43.0%
Educational Services  17.1 17.5 16.9 -0.4 -2.3% 0.2 1.2%
Health Care and Social Assistance  37.6 38.6 34.6 -1.0 -2.6% 3.0 8.7%
Information, Culture and Recreation  7.5 7.5 9.7 0.0 0.0% -2.2 -22.7%
Accommodation and Food Services  12.9 16.7 13.6 -3.8 -22.8% -0.7 -5.1%
Other Services  12.3 11.4 9.8 0.9 7.9% 2.5 25.5%
Public Administration  18.0 18.6 16.3 -0.6 -3.2% 1.7 10.4%

Note: Total may not add due to rounding.
Source: Statistics Canada's Labour Force Survey


Economic Regions – Unemployment rates decline in three out of four economic regions

  • The unemployment rate for the South Coast – Burin Peninsula showed the biggest improvement. Employment outpaced labour force growth to push the unemployment rate below 20%, down from 21.8% a year ago.
  • The unemployment rate for the West Coast – Northern Peninsula – Labrador region fell below 18% as employment gains exceeded labour force growth.
  • The Notre Dame – Central – Bonavista Bay region experienced employment losses over the past year but an even greater decline in the labour force pushed down the unemployment rate to 20.4% from 22.2% last year.
  • The Avalon Peninsula was the only region of the province where the unemployment rate increased over the past year.  In this case very strong employment growth was more than offset by an expanding labour force.  Consequently the unemployment rate rose to 11.1% compared to 10.6% a year ago.
  • The Avalon Peninsula compares well with other regions of the province because it includes St. John’s where the unemployment rate improved to 7.7%.  Labour market conditions in rural areas of the Avalon Peninsula are similar to other areas of the province.

Three Month Moving Averages
Seasonally unadjusted data

June
2010

June
2009

Variation

June
2010

June
2009

Variation

 

Newfoundland and Labrador

St. John's, Nfld

Population 15 + (‘000)

431.6

428.3

3.3

160.5

157.1

3.4

Labour Force (‘000)

263.7

257.1

6.6

111.1

107.6

3.5

Employment (‘000)

224.9

217.2

7.7

102.6

98.5

4.1

     Full-Time (‘000)

191.3

186.3

5.0

88.1

85.3

2.8

     Part-Time (‘000)

33.6

30.8

2.8

14.5

13.2

1.3

Unemployment (‘000)

38.7

39.9

-1.2

8.5

9.1

-0.6

Participation Rate (%)

61.1

60.0

1.1

69.2

68.5

0.7

Unemployment Rate (%)

14.7

15.5

-0.8

7.7

8.5

-0.8

Employment Rate (%)

52.1

50.7

1.4

63.9

62.7

1.2

 

1010 - Avalon Peninsula

1020 - South Coast - Burin Peninsula

Population 15 + (‘000)

218.4

214.9

3.5

31.5

32.0

-0.5

Labour Force (‘000)

146.3

136.7

9.6

16.9

16.5

0.4

Employment (‘000)

130.0

122.1

7.9

13.6

12.9

0.7

     Full-Time (‘000)

111.3

105.8

5.5

11.3

11.0

0.3

     Part-Time (‘000)

18.7

16.3

2.4

2.3

1.8

0.5

Unemployment (‘000)

16.3

14.5

1.8

3.3

3.6

-0.3

Participation Rate (%)

67.0

63.6

3.4

53.7

51.6

2.1

Unemployment Rate (%)

11.1

10.6

0.5

19.5

21.8

-2.3

Employment Rate (%)

59.5

56.8

2.7

43.2

40.3

2.9

 

1030 - West Coast - Northern Peninsula - Labrador

1040 - Notre Dame - Central Bonavista Bay

Population 15 + (‘000)

88.4

88.0

0.4

93.3

93.4

-0.1

Labour Force (‘000)

50.4

50.8

-0.4

50.1

53.1

-3.0

Employment (‘000)

41.4

40.9

0.5

39.9

41.3

-1.4

     Full-Time (‘000)

35.3

35.3

0.0

33.4

34.1

-0.7

     Part-Time (‘000)

6.1

5.5

0.6

6.5

7.2

-0.7

Unemployment (‘000)

9.0

10.0

-1.0

10.2

11.8

-1.6

Participation Rate (%)

57.0

57.7

-0.7

53.7

56.9

-3.2

Unemployment Rate (%)

17.9

19.7

-1.8

20.4

22.2

-1.8

Employment Rate (%)

46.8

46.5

0.3

42.8

44.2

-1.4

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

Events

Construction

Nolan Hall was given the go ahead by the City of St. John’s to construct a new hotel/condominium building on Temperance Street.  The building will consist of 140 new units.  Work is expected to begin shortly.

Environment

P & B Trucking & Rentals Inc. of Springdale was awarded a $3.1 million contract for the remediation and capping of the tailings spill and mucky ditch areas at the former mine site in Buchans.  Work is expected to begin immediately and be finished by early fall.

A contract of $215, 000 has been awarded to the BAE Newplan Group to design, administer the contract and the on-site supervision of the project.

Fishery

Owners of the Northern Shrimp Company plant in Jackson's Arm have announced the plant will not open this season. The plant has been in operation for 10 years. Approximately 120 workers will be affected by this decision. The company has stated employment may be offered to some of the affected employees at another company plant in Jackson's Arm.

Labrador Fishermen’s Union Shrimp Company Limited has submitted a proposal to construct a state-of-the-art crab processing facility in Mary’s Harbour. The facility will process live snow crab into either cooked or raw sections. Under the plan, processing will take place for approximately six months annually from May to October. Construction is scheduled to begin this summer/fall.

The Department of Fisheries and Oceans (DFO) officially opened a new science research facility on June 11. The new lab will help conserve and protect Canada’s fisheries and oceans and develop and implement policies and programs. Plans are also in place to renovate the existing building and construct a new chemical and biological storage facility and oceanographic and hydro-acoustic workshops. DFO hopes to recruit other world class scientists.

Aqua Services Ltd. of St. Alban’s received $400,000 from the Department of Fisheries and Oceans to help develop and evaluate a land-based net washing technology. This funding announcement was in addition to $250,000 from other sources. Net washing is important in controlling disease and pests and improving bio-security. These investments will help create jobs and stimulate growth in the area.

General

The latest Manpower Employment Outlook Survey indicates that St. John's area employers expect an active hiring climate for the third quarter of 2010. Thirty-three (33%) plan to hire for the upcoming quarter (July - September), an increase of 10% from the previous quarter, 7% anticipate cutbacks compared to 3% for the last quarter, and 60% intend to maintain their current staffing levels. The best job opportunities appear to be in the Mining and Construction sectors, followed by wholesale and retail trade.

Oil and Gas

Vulcan Minerals Inc. has announced it is finalizing its plans for the completion and drilling of Robinsons # 1 and Red Brook # 2 wells in Western NL. Work is expected to start in July and is expected to take 3 months to complete. All necessary equipment and material is being obtained outside the province. The results of these wells and tests will help determine an assessment of the company's permits in the area.

The Hebron project team currently employs 64 people, with approximately 80 per cent of those from the province of Newfoundland and Labrador.  Exxon Mobil is currently in the process of pre-qualifying fabrication yards, assessing safety records, quality programs and the capacity of company’s bidding on the Hebron topsides which will be built in the province.  Three topsides modules can be built in the province if there is a sufficient supply of skilled labour and capacity in local fabrication yards.  Awards are expected to be in place by September 2010.  Hebron expects to double its existing workforce by year-end..

Public Administration

In June 2010, the Canadian Union of Public Employees (CUPE), representing outside workers with the City of St. John’s reached a new tentative agreement.  The new agreement becomes effective on July 1st and includes a 15% wage hike over the next four years.  The agreement also provides sanitation workers with a 30 cent per hour increase, an increase in shift premiums from 35 cents per hour to $1 per hour, and an increase in meal allowances from $5 to $10.  The workers will also be voting on a dental plan along with two other groups.  If this plan is rejected, workers will receive an additional half a per cent raise.

Retail

Two national chain stores announced they will cease business in Corner Brook. Wells Fargo Financial closed on June 9th. Five employees were affected by this closure. Movie Gallery has announced it will close its two outlets no later than July 31st. At least six individuals are affected by the closure.

Plazacorp Retail Properties Ltd. has announced two new retail projects for Newfoundland, one in St. John’s and the other in Marystown. The St. John’s project is valued at $8 million and will cover 50,000 square feet.  Construction is expected to start during the summer months and finish in 2011. The project will be located at the corner of Stavanger Drive and Torbay Road.  It is not yet known who the tenant will be.

A new Dollarama store will be build on the old Canadian Tire site located on Villa Marie Drive in Marystown.  The project is valued at $1 million and is expected to be completed this summer..

Tourism

Burnt Cape Cabins of Raleigh is expanding to add three units. The company’s new units will include modern features and conveniences. Each unit will accommodate up to six people and include Internet access, satellite television, wheel-chair accessibility. This expansion will help further develop tourism offerings on the Northern Peninsula. The expansion will also enable the owners to extend their season.



Prepared by:  Labour Market Information Unit of Service Canada
Planning, Policy & Partnerships Unit of Service Canada