Newfoundland and Labrador Labour Market Bulletin

March 2011

Labour Force Trends - Employment levels reached an all-time high in March. Employment increased by 5.7% over the past twelve months, which was the fastest rate of increase in the country.

  • Employment increased by 900 people in March compared with the previous month. The labour force decreased by 200 from February's record high. As a result, the unemployment rate decreased to 12.4% from 12.8% a month earlier.

  • Over the year, employment levels have increased for youth (15-24 years) as well as for both genders in the age 25 and older category. Job growth was strongest for youth and for males 25 and older. Unemployment rates decreased the most for youth as employment grew while the size of the labour force remained stable.

Newfoundland and Labrador Labour Force Trends
Monthly Variation Yearly Variation
Seasonally Adjusted Data ('000) March 2011 February 2011 March 2010 Number Percent Number Percent
Population 15+ 429.2 429.2 427.8 0.0 0.0 1.4 0.3
Labour Force 260.7 260.9 255.6 -0.2 -0.1 5.1 2.0
Employment 228.6 227.7 216.3 0.9 0.4 12.3 5.7
Full-Time 196.9 195.9 184.6 1.0 0.5 12.3 6.7
Part-Time 31.7 31.8 31.6 -0.1 -0.3 0.1 0.3
Unemployment 32.2 33.3 39.4 -1.1 -3.3 -7.2 -18.3
Participate Rate (%) 60.7 60.8 59.7 -0.1 - 1.0 -
Unemployment Rate (%) 12.4 12.8 15.4 -0.4 - -3.0 -
Employment Rate (%) 53.3 53.1 50.6 0.2 - 2.7 -
Total 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 5.7% from last January. This compares to a 1.8% increase nationally. Almost all of the increase was in full-time employment.

  • The provincial unemployment rate of 12.4% is down considerably from 15.4% a year ago. This is the largest decline of any province, though it remains well above the national rate of 7.7%.

Employment and unemployment rate
Source: Statistics Canada's Labour Force Survey

Employment by Industry - Most of the province's employment increase was in the Services-Producing sector. Over the past 12 months, while Service industries have provided most of the increase, Goods-Producing employment grew at a faster rate.

  • In March, Construction employment reached a record high. 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 the summer.

  • Retail and Wholesale Trade showed a monthly loss of 1,100 jobs in March. However, Trade employment is up by almost 10%, or 3,500 jobs, from a year ago as the economy has improved.

  • Since this time last year, the Service industries have provided most of the province's employment growth. This growth in Service was led by Retail and Wholesale Trade as well as by Public Administration. In the Goods-Producing sector, most of the increase has been in Construction employment.

Employment By Industry
Monthly Variation Yearly Variation
Seasonally Adjusted Data ('000) March 2011 February 2011 March 2010 Number % Number %
Total 228.6 227.7 216.3 0.9 0.4 12.3 5.7
Goods Producing Sector 49.1 48.8 44.2 0.3 0.6 4.9 11.1
Agriculture 1.6 2.0 1.1 -0.4 -20.0 0.5 45.5
Forestry, fishing, mining, oil and gas 16.5 15.2 15.9 1.3 8.6 0.6 3.8
Utilities 2.2 2.2 1.9 0.0 0.0 0.3 15.8
Construction 18.2 17.9 14.8 0.3 1.7 3.4 23.0
Manufacturing 10.5 11.5 10.4 -1.0 -8.7 0.1 1.0
Service Producing Sector 179.5 178.9 172.1 0.6 0.3 7.4 4.3
Trade 39.3 40.4 35.8 -1.1 -2.7 3.5 9.8
Transportation and Warehousing 11.4 11.4 12.4 0.0 0.0 -1.0 -8.1
Finance, insurance, real estate and leasing 7.0 6.2 8.0 0.8 12.9 -1.0 -12.5
Professional, scientific and technical services 8.7 8.4 7.1 0.3 3.6 1.6 22.5
Business, building and other support services 6.2 5.8 5.5 0.4 6.9 0.7 12.7
Educational Services 18.4 18.0 17.4 0.4 2.2 1.0 5.7
Health care and social assistance 36.3 36.3 35.8 0.0 0.0 0.5 1.4
Information culture and recreation 8.3 8.1 7.5 0.2 2.5 0.8 10.7
Accommodations and food services 12.2 12.4 14.2 -0.2 -1.6 -2.0 -14.1
Other Services 11.4 11.8 10.6 -0.4 -3.4 0.8 7.5
Public Administration 20.5 20.1 17.9 0.4 2.0 2.6 14.5
"--" indicates number suppressed due to high sample variance
Total may not add due to rounding
Source: Statistics Canada’s Labour Force Survey – HRSDC Table-88

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 Construction, Retail / Wholesale Trade and Public Administration helped lower the unemployment rate considerably. This rate fell to 9.0% from 12.6% last year at this time. In St. John's the unemployment rate dropped to 6.5% from 8.3% over the same period, as employment grew at a faster rate than the labour force.

The South Coast - Burin Peninsula region had the fastest employment growth in the province over the past year. However, the area's unemployment rate showed no change as the labour force and employment grew at very similar rates. Labour force participation rose to 56.5% compared with 47.1% a year ago.

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 as there was a slight decline in the labour force and in employment. 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 27.4% to 20.4%. However, much of this decrease is due to a shrinking labour force, not to employment growth. This region's labour force participation rate is the lowest in the province and showed a notable decrease compared to last March. Also, most of the area's employment increase over the year was part-time in nature, while growth in other regions was primarily full-time work.

Regional Breakout
Three Month Moving Averages
Seasonally unadjusted data
March 2011 March 2010 Variation March 2011 March 2010 Variation
  Canada Newfoundland and Labrador
Population 15+ ('000) 27,865.5 27,523.9 341.6 429.2 427.8 1.4
Labour Force ('000) 18,413.3 18,176.8 236.5 249.3 245.2 4.1
Employment ('000) 16,917.4 16,596.4 321.0 214.5 202.7 11.8
   - Full-Time ('000) 13,454.4 13,237.5 216.9 180.1 169.2 10.9
   - Part-Time ('000) 3,463.0 3,358.9 104.1 34.5 33.6 0.9
Unemployment ('000) 1,495.9 1,580.4 -84.5 34.8 42.4 -7.6
Participation Rate (%) 66.1 66.0 0.1 58.1 57.3 0.8
Unemployment Rate (%) 8.1 8.7 -0.6 14.0 17.3 -3.3
Employment Rate (%) 60.7 60.3 0.4 50.0 47.4 2.6
  1010 - Avalon Peninsula 1020 - South Coast - Burin Peninsula
Population 15+ ('000) 220.3 217.9 2.4 30.8 31.2 -0.4
Labour Force ('000) 140.6 136.2 4.4 17.4 14.7 2.7
Employment ('000) 127.9 119.1 8.8 13.6 11.4 2.2
   - Full-Time ('000) 108.4 99.8 8.6 11.8 9.3 2.5
   - Part-Time ('000) 19.5 19.3 0.2 1.8 2.1 -0.3
Unemployment ('000) 12.7 17.1 -4.4 3.9 3.3 0.6
Participation Rate (%) 63.8 62.5 1.3 56.5 47.1 9.4
Unemployment Rate (%) 9.0 12.6 -3.6 22.4 22.4  
Employment Rate (%) 58.1 54.7 3.4 44.2 36.5 7.7
  1030 - West Coast - Northern Peninsula - Labrador 1040 - Notre Dame - Central Bonavista Bay
Polulation 15+ ('000) 87.0 87.4 -0.3 91.0 91.4 -0.4
Labour Force ('000) 47.6 48.2 -0.6 43.7 46.0 -2.3
Employment ('000) 38.3 38.8 -0.5 34.8 33.4 1.4
   - Full-Time ('000) 32.2 32.4 -0.2 27.7 27.6 0.1
   - Part-Time ('000) 6.1 6.3 -0.2 7.0 5.8 1.2
Unemployment ('000) 9.3 9.4 -0.1 8.9 12.6 -3.7
Participation Rate (%) 54.6 55.1 -0.5 48.0 50.3 -2.3
Unemployment Rate (%) 19.5 19.5   20.4 27.4 -7.0
Employment Rate (%) 44.0 44.4 -0.4 38.2 36.5 1.7
St-John's Nfld.  
Populaiton 15+ ('000) 160.6 158.9 1.7      
Labour Force ('000) 110.5 106.9 3.6      
Employment ('000) 103.3 98.0 5.3      
   - Full-Time ('000) 87.9 82.3 5.6      
   - Part-Time ('000) 15.4 15.7 -0.3      
Unemployment ('000) 7.2 8.9 -1.7      
Participation Rate (%) 68.8 67.3 1.5      
Unemployment Rate (%) 6.5 8.3 -1.8      
Employment Rate (%) 64.3 61.7 2.6      
"--" indicates number suppressed due to high sample variance
Total may not add due to rounding
Source: Statistics Canada’s Labour Force Survey – HRSDC Table-88

LABOUR MARKET NEWS BY REGION

Avalon Peninsula

Health Care:

Layoffs are confirmed by the new owner of Elizabeth Towers. The building currently houses 102 assisted living units, which are rented to seniors. Now, in addition to selling the commercial space the building housed, the majority of assisted living units will be sold as well. This will leave less than half of those presently living there, without the level of assisted care that is currently offered.   SOURCE: The Telegram, March 17, 2011

Research and Development:

Six Newfoundland projects are scheduled to receive a total of $14.6 million in money from the Atlantic Innovation Fund of the Atlantic Canada Opportunities Agency. This money will help to create new jobs, as well as help research and development in areas such Marine Institute virtual training environments, the crab fishery and research into genetic causes of Sudden Cardiac Death.   SOURCE: VOCM News, March 14, 2011

Education:

There are changes confirmed in the Eastern School District of St. John's. While the decision of whether to close I.J. Sampson Junior High was deferred, Holy Cross and Macpherson Elementary Schools will be closed. Holy Heart of Mary High School will be renovated and there will be two new schools built for grades 5-7 in the Torbay-Pouch Cove and Portugal Cove-St. Philips areas.   SOURCES: CBC News, March 10, 2011  VOCM News, March 10, 2011

Construction:

There have been more major construction proposals for Downtown St. John's. Henry Bell Developments L.P. aims at redeveloping the old CBC building on Duckworth Street. They also now propose to redevelop the old Newfoundland Telephone Building by renovating and expanding it into condominiums and commercial space. In addition to both of these sizable projects, they are proposing to construct a five level parking garage close to the CBC building.   SOURCE: The Telegram, March 28, 2011

Capital Investments:

Airports and Marine facilities in Newfoundland and Labrador will receive tens of millions of dollars for repairs and upgrades for a total dollar value in excess of $43 million, shared between the federal and provincial governments. St. John's International and Gander International Airports, the Port of Argentia, and the Marine Institute's Smart Bay Project in Placentia Bay will avail of the funding for various projects.   SOURCE: CBC News, March 23, 2011

Government Services:

The federal Ministry of Fisheries and Oceans announced a decision to stop the de-staffing of lighthouses both here in this province, and in BC. The decision follows a Senate Committee report of last December. Twenty three lighthouses in Newfoundland and Labrador, therefore, will continue to be manned by lighthouse staff.  SOURCE: CBC News, March 3, 2011

South Coast - Burin

Labour Disputes:

The six-week long strike by approximately 100 trawlermen with Ocean Choice International has ended with the signing of a two year agreement. The strike had forced the closing of the OCI fish plants in Fortune and Marystown, affecting about 230 workers; but those plants are now back in operation.   SOURCES: CBC News & VOCM News, March 7, 2011

Health Care:

Burin Peninsula health care facilities will receive $368,000 from the provincial government for new equipment, repairs and renovations, with the bulk ($267,000) being spent on the Burin Peninsula Health Care Centre.  SOURCE: The Telegram, March 25, 2011

West Coast-Northern Peninsula-Labrador

Labour Disputes:

After more than a year on strike, more than 200 Voisey's Bay mine workers returned to work early in March. Approximately 250 workers were affected by the strike - the Voisey's Bay mine workers and 50 contract maintenance workers. The mine workers reached a deal with the mine operators in January of 2011 and have been undergoing training since the agreement was ratified. The contract maintenance workers reached a deal in February.  SOURCE: Labradorian, March 11, 2011

Manufacturing:

Holson Forest Products is continuing progress towards production of wood pellets at it's plant in Roddickton. Over the last 18 months, since August of 2009, the company has been refitting its sawmill operation to include a pellet production plant. The plant will have the capacity to produce 50,000 tonnes of pellets, most of which will shipped overseas. The company is currently working to locate a storage facility for the pellets.  SOURCE: Northern Pen (www.northernpen.ca), March 14, 2011

Capital Investments:

The Deer Lake Regional Airport Authority has announced its 11th consecutive operating surplus. The airport was also able to increase passenger traffic in the last year. The authority has completed a number of improvements in the last year, including a runway extension, building expansion, major equipment purchases, as well as attracting a number of new flights. Future improvements planned include further building improvements and increased parking capacity.   SOURCE: Western Star, March 16, 2011

Notre-Dame - Central - Bonavista Bay

Food Processing:

Ocean Choice International will not re-open its' shrimp processing plant in Port Union on the Bonavista Peninsula this summer, as hoped. 180 employees were affected when the plant closed in September due to extensive damage caused by Hurricane Igor. The provincial government plans to back a make-work program to help plant workers in that area.   SOURCE: CBC, March 29, 2011

Manufacturing:

Recent reports indicate that employment may be hard hit this summer in the Bloomfield area of the Bonavista Peninsula. The owner of Sexton Lumber says they may shut down for eight weeks due to difficulties accessing an adequate supply of wood. Ninety-two people are employed directly at the mill, with another 300 who could be affected indirectly.  SOURCE: The Telegram, March 26, 2011

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

For more information contact: visit our website at www.labourmarketinformation.ca

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