Monthly Labour Market Bulletin - November 2010

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Labour Force Trends – Fewer jobs and a slightly larger labour force pushed the unemployment rate to 13.8% in November from 13% a month earlier.  Despite the increase, Newfoundland and Labrador’s unemployment rate has shown the most improvement of any province over the last twelve months.

• Employment declined by 0.6% in November compared to the previous month but is still only slightly below the record high set in September.  Even with the decline, Newfoundland and Labrador has recorded the highest employment growth of any province since November last year.

• November’s job losses were concentrated among workers 25 years and over and were all full-time positions.  Employment among men and women 25 and older declined by 1.4% and 0.6% respectively.  In contrast, employment among youth (15 – 24) increased by 2.1% in November.

• Youth employment increased in November compared to the previous month, but an expanding labour force pushed up the youth unemployment rate to 18.4% from 16.9% in October.  Nationally, youth labour force participation declined.  The unemployment rate for men 25 and older in the province increased to 15.7% from 14.4% the previous month, while the rate for women 25 and older was unchanged at 10.3%.

• The November participation rate declined from the high established in September but was up compared with the same period a year ago.  The employment rate in the province declined marginally in November but increased compared with November last year.

Employment by Industry – Employment in the Goods-Producing sector declined last month but remained on par with a year ago.  Service sector employment was unchanged in November but accounted for almost all the employment growth in the province over the last 12 months.

• Job losses in Construction as well as in Forestry, Fishing, Mining and Oil and Gas led to fewer jobs in the Goods-Producing sector in November compared to the previous month.  Despite last month’s declines, employment in these industries has increased compared with the same period a year ago.  Manufacturing employment was unchanged last month but down significantly compared to November last year.  The Agriculture sector experienced a significant increase in employment over the last year.  Employment in Forestry, Fishing, Mining and Oil & Gas also increased over this period.

• Employment in the Service-Producing sector was unchanged in November compared with the previous month but was up significantly year over year.  Gains in Education, Accommodation and Food Services, Transportation and Warehousing as well as Business, Building and Other Support Services offset declines in Health Care and Social Services, Finance, Insurance, Real Estate and Leasing and in Other Services.  Employment in Service-Producing industries in November was down slightly compared to the record high established in September but was still high compared to historical levels.

• Newfoundland and Labrador has experienced the highest employment growth of any province over the last year.  Almost all of the improvement can be attributed to more Service sector jobs.  Job growth has been particularly strong in Retail/Wholesale Trade, Public Administration, Information, Culture and Recreation as well as in Other Services.  Strength in these areas more than offset declines in Transportation and Warehousing, Finance, Insurance, Real Estate and Leasing and Accommodation and Food Services.

Economic Regions – South Coast-Burin Peninsula region recorded the highest employment growth over the last 12 months.  Notre Dame – Central Bonavista Bay unemployment rate has shown the most improvement.

• The unemployment rate for the Notre Dame Bay – Central Bonavista Bay region fell to 16.3% from 20.0% a year ago.  A slight increase in employment combined with a smaller decline in the labour force to generate the improvement.  Labour force participation declined compared with a year ago.  The region’s participation rate is the lowest in the province at 52.7%.

• On the South Coast – Burin Peninsula, the unemployment rate increased to 19.8% from 19.2% a year ago despite extremely strong employment growth in the region.  The improving employment situation encouraged more workers to enter the workforce.  The area participation rate increased to 58.1% in November compared to 49.1% a year ago.

• Labour market conditions showed little change for the West Coast-Northern Peninsula-Labrador region in November compared with a year ago. The number of people unemployed in the area declined slightly and there was a marginal increase in employment.  With fewer people in the labour force, the region’s unemployment rate fell to 14.6% in November, down from 15.3% for the same month last year.

• Strong employment growth on the Avalon Peninsula pushed down the area unemployment rate to 8.6% in November, its lowest level in over three years.  Labour market indicators for this region are heavily influenced by developments in St. John’s.  While rural and urban areas of the region have benefited from job gains over the last year, labour market conditions outside the St. John's area are similar to other regions of the province.

• The unemployment rate for the St. John’s area improved to 6.4% in November, down from 8.3% a year ago despite a growing population and an expanding labour force.  As the major service center in the province, the capital city has benefited from the large increase in service sector employment over the past year.

Events

Construction

• A new wharf is being built in Harbour Breton to replace the old one.  The new structure should be completed in late summer or early fall 2011.  There are about eight people currently working on the project, but several more will be hired as construction progresses.
          Source:  The Coaster, November 23, 2010

• The federal and provincial governments announced that a $276,000 contract has been awarded to C.W. Parsons Ltd. to clear the highway corridor for the extension of the Team Gushue Highway in St. John’s.  The cost of construction will be equally shared by both governments under the federal Building Canada Fund.  This new extension will link the west end of St. John’s with the Outer Ring Road in the north and the Robert E. Howlett Memorial Drive in the South.  The provincial government will assume any additional costs for project design, contract administration and land acquisition.
          Source:  The Telegram, November 24, 2010

• The provincial government has awarded a contract of approximately $260,000 to Jenkins Power Sheet Metal Inc. of St. John’s to upgrade the ventilation system of Her Majesty’s Penitentiary (HMP).  The first phase of a multi-phase program will include upgrades to the existing ventilation system in the main living units, and installation of new equipment to improve air flow and thermal conditions.  Phase I of the work is expected to be completed by March 2011.
          Source:  The Telegram, November 24, 2010

Health

• The provincial government has announced it will spend $3.5 million on renovations and equipment at health care facilities in Grand Falls-Windsor.  This is in addition to $7.9 million allocated for the Health Centre in April of this year.  These funds are part of a bigger picture to redevelop the health centre, which is expected to cost a total of $30 million over the next four years.  The majority of the newly announced funds will be spent on new equipment, while a portion will go toward repairs and renovations.  Carmelite House, a long-term care facility in the area, has also been allotted $51,400 to purchase drug carts and long-term care beds.
          Source: CBC, November 22, 2010

• Fourteen medical specialists have tendered their resignations which will take effect early February 2011.  Thirteen of the doctors work for Eastern Health with specialties that range from emergency pediatric care to internal medicine.  These specialists are seeking pay increases equivalent to what was given to the oncologists and pathologists in the last contract negotiated in 2008.  They are seeking parity with their counterparts in the other Atlantic provinces and claim that this disparity in wages is causing recruitment problems and long waits for patients.  The doctors' last four-year contract expired more than a year ago and the government has offered close to parity with the other doctors in the Atlantic provinces over a four year period phased in from 2009 to 2013.  The offer would have them receive a 40 percent increase in the first year and 20 percent each year for the next three years.
          Source: The Telegram and CBC, November 5, 2010

Mining

• Cornerstone Capital Resources of Mount Pearl, in conjunction with their partner Thundermin Resources of Toronto, are currently working on plans for a winter drilling project in the Springdale area.  The companies feel there is a significant copper discovery in that area.  A representative for Thundermin Resources states they have firmed up over three million tonnes of copper and hope to increase that to five or six million.  Both partners feel there is huge potential to be economically successful in this project and also to create employment in the Green Bay region.  Currently the Springdale project employs 2 to 4 people, primarily geologists and technicians.  To date, over $6 million has been spent on the venture. 
          Source: VOCM, November 24, 2010

• Cornerstone Capital Resources of Mount Pearl has announced that Vale Exploration Canada (VEC) Inc., a wholly-owned subsidiary of Vale, has begun a diamond drilling program on the Red Cliff copper property on the Bonavista Peninsula.  VEC has the option to acquire a 60% interest in Cornerstone's Red Cliff and Deer Harbour properties and is currently operator of the exploration programs.  Once drilling is completed, a prospecting and soil geochemistry sampling program is planned for the Deer Harbour property, located on the western side of Trinity Bay.
          Source: The Telegram, November 5, 2010 

Oil and Gas

• ExonMobil has finalized a deal valued at US $140-million with Kiewit-Aker Contractors to design the gravity base structure (GBS) for the Hebron project.  The contract includes the option to build the $5-billion GBS which is the production platform’s concrete pedestal that sits on the Grand Banks seabed.  Engineering will begin immediately and site preparation at the Bull Arm dry dock is expected to begin next year.  Construction is scheduled to begin around mid 2012.  There are also some opportunities for GBS work, such as steel fabrication to be done in other areas in addition to Bull Arm.  When contacted, a representative from Kiewit-Aker stated that the number of workers that will be required for the project is unknown at present as they are just now calling for subcontractors for the project.  They have 90 days to determine more specific needs for workers.
          Source: The Telegram, November 10, 2010
                       Kiewit-Aker Contractors, December 2, 2010

• Canadian Imperial Venture Corporation is planning to spend $6 million on exploratory drilling for oil in western Newfoundland over the next two months. The company has been drilling in the Bay St. George area for more than 15 years. The test drilling activity will take place in the Shoal Point area. The company is looking for approximately 20 workers. Individuals interested in working on the project can submit a resume to resume@dragonlance.ca
          Source: CBC News, November 19, 2010

Retail

• Melendy’s Kuffer Korner in downtown St. John’s is closing its doors after more than 50 years in business.  The store mainly catered to tourists during the summer months.  With rising costs in rent, lack of parking in the downtown area and a softening seasonal business, the family decided it was time to close.  Four employees will be affected by the closure.  This is the second closure of a long term downtown retail business in recent months.
          Source:  The Telegram, November 11, 2010

Technology

• The provincial government and the federal Atlantic Canada Opportunities Agency (ACOA) announced a combined total of $859,400 in funding to Memorial University’s Genesis Centre.  The funding will be used to develop the ocean technology sector in this province. The Genesis Centre will work with entrepreneurs in to develop new technology-based business ventures, development of business plans, and provide access to technology and professional mentorship.  In addition, the funding is expected to foster eleven new technology companies and continue with the development of the ten existing companies in the centre.  The Genesis Centre currently employs approximately 450 client and graduate businesses and has about $18-million in equity.
          Source: The Telegram, November 9, 2010

Transportation

• Approximately 100 Metrobus Transit workers in St. John’s are currently on strike.  The strike went into effect on November 4, 2010.  The Amalgamated Transit Union Local representing the workers had entered into conciliation on November 1, 2010 in an attempt to reach a new contract but was unsuccessful.   Some of the key issues in contention relate to group benefits and wages. No new talks have been scheduled and transit service will remain suspended during the labour dispute. Metrobus has a fleet of 54 busses and provides transportation services to approximately 14,000 passengers per day, with 17 routes in and around St. John’s.
          Source:  The Telegram, November 1 – 5, 2010 

Utilities

• On November 18th, the premiers of Newfoundland and Labrador and Nova Scotia announced a $6.2-billion deal to develop the Lower Churchill hydroelectric megaproject.  The project will generate power on the Churchill River and supply energy to both provinces.  First power is expected to be delivered in 2016.  Twenty-seven hundred (2700) jobs will be created during peak construction and 120 jobs will be created at the facility during operation.
          Source: CBC News, November 18, 2010

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Prepared by:  Labour Market Information Unit of Service Canada