Newfoundland and Labrador Labour Market Bulletin - May 2010
Labour Force Trends – Strong employment growth in May pushed the provincial unemployment rate below 14% for the first time since December 2008.
- Employment increased by 3.5% in May to reach an all-time high. Since last May employment in the province is up 6.5%, by far the largest increase of any province. Nationally, employment increased 1.7% over the same period.
Labour force growth was also quite strong in May, pushing up the participation rate to 61%, the highest rate ever recorded in the province.
| Seasonally Adjusted Data | May- 2010 |
April-2010 | May-2009 | Monthly Variation Number % |
Yearly Variation Number % |
||
|---|---|---|---|---|---|---|---|
| Population 15 + ('000) | 431.6 | 431.5 | 428.2 | 0.1 | 0.0% | 3.4 | 0.8% |
| Labour force ('000) | 263.1 | 258.1 | 251.0 | 5.0 | 1.9% | 12.1 | 4.8% |
| Employment ('000) | 226.9 | 219.3 | 213.1 | 7.6 | 3.5% | 13.8 | 6.5% |
| Full-time ('000) | 193.8 | 187.3 | 183.5 | 6.5 | 3.5% | 10.3 | 5.6% |
| Part-time ('000) | 33.1 | 32.0 | 29.6 | 1.1 | 3.4% | 3.5 | 11.8% |
| Unemployment ('000) | 36.2 | 38.8 | 37.9 | -2.6 | -6.7% | -1.7 | -4.5% |
| Participation Rate (%) | 61.0 | 59.8 | 58.6 | 1.2 | - | 2.4 | - |
| Unemployment Rate (%) | 13.8 | 15.0 | 15.1 | -1.2 | - | -1.3 | - |
| Employment Rate (%) | 52.6 | 50.8 | 49.8 | 1.8 | - | 2.8 | - |
Note(s): Total may not add due to rounding |
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Source: Statistics Canada's Labour Force Survey - HRSDC Table CD1T47sa |
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- Despite last month’s improvement, the provincial unemployment rate is still the highest in the country at 13.8%. Nationally the unemployment rate was unchanged at 8.1%.
- Employment increased for both men and women 25 and over but was unchanged for youth (15 -24). The youth unemployment rate remains stubbornly high at 21.3%. The rate for students is even higher at 25.4%.
Employment by Industry – Fishing and fish processing push up employment in the Goods-Producing Sector in May; Services provide most new jobs over the last year
- The Goods-Producing Sector benefited in May as fishing and fish processing employment increased over April on a seasonally adjusted basis. An increase in oil and gas activity mostly offset declines in mining and related support services. Manufacturing, which includes fish processing, increased in May but was down compared to a year ago given weakness in other components. Construction employment showed little change from the previous month and was down slightly compared to May 2009.
- The Services-Producing Sector also contributed to employment growth last month and has provided most of the new jobs over the past year. An improving economy led to a 28.5% increase in Accommodation and Food Services employment. Most other service sector components also contributed to the increase including Health and Social Services, Transportation and Warehousing, Public Administration and Other Services. Employment losses occurred in Business, Building and Other Support Services, as well as Professional, Scientific and Technical Services and Information, Culture and Recreation.
Seasonally Adjusted Data ('000) |
May 2010 |
April 2010 |
May 2009 |
Monthly Variation Number % |
Yearly Variation Number % |
||
|---|---|---|---|---|---|---|---|
| Total | 226.9 | 219.3 | 213.1 | 7.6 | 3.5% | 13.8 | 6.5% |
| Goods-producing sector | 46.6 | 44.1 | 45.0 | 2.5 | 5.7% | 1.6 | 3.6% |
| Agriculture | 1.7 | 1.3 | 0.9 | 0.4 | 30.8% | 0.8 | 88.9% |
| Forestry, Fishing, Mining, Oil and Gas | 16.7 | 15.9 | 14.0 | 0.8 | 5.0% | 2.7 | 19.3% |
| Utilities | 2.1 | 2.0 | 1.9 | 0.1 | 5.0% | 0.2 | 10.5% |
| Construction | 15.5 | 15.4 | 16.0 | 0.1 | 0.6% | -0.5 | -3.1% |
| Manufacturing | 10.6 | 9.5 | 12.1 | 1.1 | 11.6% | -1.5 | -12.4% |
| Services-producing sector | 180.4 | 175.3 |
168.1 | 5.1 | 2.9% | 12.3 | 7.3% |
| Trade | 36.8 | 37.4 | 34.1 | -0.6 | -1.6% | 2.7 | 7.9% |
| Transportation & Warehousing | 12.7 | 12.1 | 11.4 | 0.6 | 5.0% | 1.3 | 11.4% |
| Finance, Insurance, Real Estate and Leasing | 8.3 | 7.9 | 7.8 | 0.4 | 5.1% | 0.5 | 6.4% |
| Professional, Scientific and Technical Services | 6.7 | 6.6 | 8.1 | 0.1 | 1.5% | -1.4 | -17.3% |
| Management, Administrative and Other Support |
5.5 | 5.5 | 7.5 | 0.0 | 0.0% | -2.0 | -26.7% |
| Educational Services | 17.5 | 17.8 | 16.2 | -0.3 | -1.7% | 1.3 | 8.0% |
| Health Care and Social Assistance | 38.6 | 37.1 | 34.1 | 1.5 | 4.0% | 4.5 | 13.2% |
| Information, Culture and Recreation | 7.5 | 7.0 | 9.2 | 0.5 | 7.1% | -1.7 | -18.5% |
| Accommodation and Food Services | 16.7 | 15.9 | 13.0 | 0.8 | 5.0% | 3.7 | 28.5% |
| Other services | 11.4 | 10.0 | 9.9 | 1.4 | 14.0% | 1.5 | 15.2% |
| Public Administration | 18.6 | 17.9 | 16.7 | 0.7 | 3.9% | 1.9 | 11.4% |
Note: : '--' indicates number suppressed due to high sample variance. |
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Economic Regions – South Coast-Burin Peninsula unemployment rate improves but remains high
- The South Coast-Burin Peninsula unemployment rate showed the largest improvement of any region, falling to 21.5% from 25.5% a year earlier as job gains outpaced labour force growth.
- The situation for the West Coast–Northern Peninsula-Labrador region also improved as employment growth pushed the unemployment rate below 20%.
- The Notre Dame-Central Bonavista Bay region was the only area to experience job losses over the last year. Consequently, the unemployment rate increased to 24.6%, the highest of any region in the province.
- The unemployment rate for the Avalon Peninsula increased slightly to 12.2% as labour force growth exceeded job gains. The area compares well with other regions of the province because it includes St. John’s where the unemployment rate is 8.2%. Labour market conditions in rural areas of the Avalon Peninsula are similar to the rest of the province.
Three Month Moving Averages |
May |
May 2009 |
Variation |
May 2010 |
May 2009 |
Variation |
|---|---|---|---|---|---|---|
|
Newfoundland and Labrador |
St. John's, Nfld |
||||
Population 15 + (‘000) |
431.4 |
428.1 |
3.3 |
160.2 |
156.8 |
3.4 |
Labour Force (‘000) |
258.6 |
250.3 |
8.3 |
110.1 |
106.6 |
3.5 |
Employment (‘000) |
215.8 |
208.0 |
7.8 |
101.1 |
97.7 |
3.4 |
Full-Time (‘000) |
181.4 |
176.1 |
5.3 |
86.3 |
83.3 |
3.0 |
Part-Time (‘000) |
34.4 |
31.8 |
2.6 |
14.8 |
14.4 |
0.4 |
Unemployment (‘000) |
42.8 |
42.3 |
0.5 |
9.0 |
8.9 |
0.1 |
Participation Rate (%) |
59.9 |
58.5 |
1.4 |
68.7 |
68.0 |
0.7 |
Unemployment Rate (%) |
16.6 |
16.9 |
-0.3 |
8.2 |
8.3 |
-0.1 |
Employment Rate (%) |
50.0 |
48.6 |
1.4 |
63.1 |
62.3 |
0.8 |
|
1010 - Avalon Peninsula |
1020 - South Coast - Burin Peninsula |
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Population 15 + (‘000) |
218.1 |
214.6 |
3.5 |
31.6 |
32.0 |
-0.4 |
Labour Force (‘000) |
143.3 |
134.4 |
8.9 |
16.3 |
16.1 |
0.2 |
Employment (‘000) |
125.8 |
119.2 |
6.6 |
12.9 |
12.0 |
0.9 |
Full-Time (‘000) |
107.0 |
101.6 |
5.4 |
10.5 |
10.4 |
0.1 |
Part-Time (‘000) |
18.8 |
17.6 |
1.2 |
2.4 |
1.6 |
0.8 |
Unemployment (‘000) |
17.5 |
15.2 |
2.3 |
3.5 |
4.1 |
-0.6 |
Participation Rate (%) |
65.7 |
62.6 |
3.1 |
51.6 |
50.3 |
1.3 |
Unemployment Rate (%) |
12.2 |
11.3 |
0.9 |
21.5 |
25.5 |
-4.0 |
Employment Rate (%) |
57.7 |
55.5 |
2.2 |
40.8 |
37.5 |
3.3 |
|
1030 - West Coast - Northern Peninsula - Labrador |
1040 - Notre Dame - Central Bonavista Bay |
||||
Population 15 + (‘000) |
88.4 |
88.0 |
0.4 |
93.4 |
93.4 |
0.0 |
Labour Force (‘000) |
49.9 |
49.3 |
0.6 |
49.1 |
50.5 |
-1.4 |
Employment (‘000) |
40.2 |
38.3 |
1.9 |
36.9 |
38.5 |
-1.6 |
Full-Time (‘000) |
33.8 |
32.7 |
1.1 |
30.2 |
31.4 |
-1.2 |
Part-Time (‘000) |
6.5 |
5.6 |
0.9 |
6.7 |
7.0 |
-0.3 |
Unemployment (‘000) |
9.7 |
11.0 |
-1.3 |
12.1 |
12.0 |
0.1 |
Participation Rate (%) |
56.4 |
56.0 |
0.4 |
52.6 |
54.1 |
-1.5 |
Unemployment Rate (%) |
19.4 |
22.3 |
-2.9 |
24.6 |
23.8 |
0.8 |
Employment Rate (%) |
44.5 |
43.5 |
2.0 |
39.5 |
41.2 |
-1.7 |
Note: : '--' indicates number suppressed due to high sample variance. |
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EVENTS
Construction
- According to Canada Mortgage and Housing Corp. (CMHC), new housing starts in Newfoundland were up by 25.5 percent from April 2010 over April 2009 (133 new starts compared to 106). Of those, 129 were in the St. John’s area, an increase of 48 percent from April 2009.
- On May 25, 2010, the Governments of Canada and Newfoundland and Labrador announced $3.4 million in funding for renovation and retrofit work on 244 NL Housing units in the western region. An additional $1.7 million has been announced for renovation work on 125 NL Housing units in Labrador. The funding is to be used for a combination of interior and exterior work on the units. The units to be renovated on the west coast are located in areas from St. Anthony to St. Andrews.
Construction/Retail
- A major new retail development project has just been announced for Queensway Industrial Park in Grand Falls-Windsor. Econo-Malls Management Corporation are hoping to attract a large mass merchandiser and between 10 and 12 smaller stores in the 2,000 to 5,000 square foot range in the 175,000 square feet development. An extensive marketing campaign is scheduled to start right away. The development will create jobs for contractors in the province who will build the structures and for workers that will be needed in the stores. The company is hoping to start construction of the building by the end of 2010.
Fishery
- Workers at six Ocean Choice International (OCI) fish plants in the province have voted 88% overall in favour of accepting the new two-year contract offered by their employer. Workers currently earn an average salary of $13.00 per hour. The agreement includes an increase of 25 cents an hour in their base pay, to $13.45 next January. There were no concessions in overtime, vacations and statutory holidays, which the company had previously requested. The contract affects approximately 1200 employees in Marystown, Bonavista, Dildo, Port au Choix, Port Union and Triton.
- Due to the lack of raw product, Ocean Choice International (OCI) has sold their non-unionized fish plant in Hermitage to Cooke Aquaculture. The plant will now be used by its new owner as a service depot for feed distribution and maintenance needs. The 53 workers in the Hermitage plant have been offered jobs in the OCI plant in St. Lawrence as the company has immediate need for employees in that facility.
Health
- On May 10, 2010, the National Association of Public Employees (NAPE), representing approximately 600 employees of Caregivers, an agency that provides home and residential support services, voted to accept a new collective agreement.
Manufacturing
- Weather Shore Windows of Trepassey, NL are relocating their window manufacturing company to St. John’s on June 25th. Approximately 15 employees are affected by the move. Employees were given the option to either keep their jobs, with the same pay, or take a severance package.
- On April 27, 2010, a new company Integrated Logistics NL Ltd. set up at the Port of Argentia. The company will provide logistics services to the Port of Argentia for material handling, warehousing, stevedoring, marine transportation, shipping logistics security along with other services. The company expects to hire up to 30 employees, depending on contracts and the amount of work to be completed.
Mining
- Wabush Mines has announced it has successfully worked through the slowdown caused by the global recession and is ready to move forward. Wabush Mines had laid off 130 workers a little over a year ago. The mine is back to its full staffing levels and it plans to hire additional workers in the next year to meet needs created by growth and to fill positions vacated by retirement. The company plans on spending $35 million to improve mine and equipment productivity in the next year.
- The Iron Ore Company of Canada (IOC) has announced its expansion plan is now moving forward. The $500 million expansion was first announced in 2008 but postponed due to the global economic recession. The expansion will increase production capacity over the next two years. In addition to direct employment creation, employment will be created with contractors coming to Labrador to complete the necessary work.
Oil and Gas
- Marystown Shipyard has secured a contract to refit the Henry Goodrich oil rig. The project will provide employment for about 350 people and is expected to take two and a half months to complete. Local businesses are preparing for the influx of people who will also contribute to various other spin-off industries.
- Nalcor Energy Oil & Gas has completed its drilling of its first well near Parsons Pond (on the west coast of Newfoundland). The company and its partners have announced they have found natural gas at the site. Flow tests will be completed over the summer to determine the quantity of natural gas that exists. This well – Seamus I – is the first of a 3-well program planned for the northern peninsula.
Public Administration
- Marystown Town Council recently passed a motion to award a $6.6 million contract to build the town’s new water treatment plant to G.J. Cahill, a St. John’s company. There are other components to the project that are worth another approximately $6 million and those will be awarded shortly. It is expected that the work will begin by the end of this year and will be completed by the end of 2011.
Retail
- A new Pipers store is coming to St. John’s. The store will be located at the corner of Elizabeth Avenue and New Cove Road. It is not known how many employment opportunities will be created.
- The Newfoundland and Labrador Liquor Corporation plans to open approximately seven new Express stores in the Shea Heights, St. Phillip’s, Whitbourne/Trans Canada Highway, Swift Current/Goobies, South Dildo, Wiltondale and Red Bay, Labrador areas. It is not known how many employment opportunities will be created.
Green Projects
- An initiative being undertaken by New World Dairies of St. David's will capture energy from waste materials. A new $ 4 million system is being installed at the facility that will turn manure into clean fertilizer as well as extract methane gas to be burned in a generator. The generator will create more than twice the energy needed to power the entire farm. The province is contributing $990,000 towards the project. Equipment should be installed by the end of the summer.
Prepared by: Labour Market Information and Planning, Policy & Partnerships units of Service Canada