Newfoundland and Labrador Labour Market Brief

September 2011

Labour Force Trends – Labour force and employment levels both declined in September. As a result the unemployment rate decreased slightly to 13.5%.  However, employment remains relatively strong from a longer term perspective. 

  • In September, the seasonally adjusted unemployment rate decreased to 13.5% from 13.7% a month earlier as employment declined faster than the labour force.  The employment decrease was related to part-time losses as full-time employment increased by 2,800. 
Newfoundland and Labrador Labour Force Trends
 Monthly Variation  Yearly Variation
Seasonally Adjusted Monthly Data 

 Sept
2011

 Aug 2011  Sept 2010 Number 
 %              
Number   %           
Population 15+ ('000)  428.5 428.5 428.4 0.0 0.0% 0.1 0.0%
Labour Force ('000)  254.6 257.4 259.1 -2.8 -1.1% -4.5 -1.7%
Employment ('000)  220.2 222.0 224.0 -1.8 -0.8% -3.8 -1.7%
  Full-Time ('000)  187.6 184.8 191.2 2.8 1.5% -3.6 -1.9%
  Part-Time ('000)  32.7 37.2 32.8 -4.5 -12.1% -0.1 -0.3%
Unemployment ('000)  34.4 35.3 35.2 -0.9

-2.5%

-0.8 -2.3%
Unemployment Rate (%)  13.5 13.7 13.6 -0.2 -0.1  
Participation Rate (%)  59.4 60.1 60.5 -0.7 -1.1  
Employment Rate (%)  51.4 51.8 52.3 -0.4 -0.9  
Total may not add due to rounding
Source: Statistics Canada’s Labour Force Survey – HRSDC Table 087
  • The seasonally adjusted figures show a notable employment loss since hitting a record high in April.
      
  • In recent months, the unemployment rate was below 12%, which is quite low for this province from a longer term perspective.  Before this recent period, rates below 12% had been last reported in 1981.  However, Newfoundland and Labrador continues to have the highest unemployment rate of all provinces.
  • Compared to 12 months ago, the seasonally adjusted figures show a loss of 3,800 jobs.  This compares to a gain of 1,000 jobs in the unadjusted numbers.  Our recent economic experience helps explain this.  Since the fall of 2008, the labour market has gone through a global recession and felt the benefits of government financial stimulus and recovery.  This was not a typical seasonal pattern in our economy.  In 2011, the seasonal pattern in the labour market changed from recent years.  This year the recovery has taken place and the economy has trended towards record high employment.  As a result this year’s seasonal adjustments have presented the labour market more positively in the winter and spring and negatively since the summer.  This has also caused the seasonal numbers to vary notably from month to month.  The important point is that employment remains higher than the same time last year when these seasonal adjustments are removed (see chart below). 

Employment-Unadjusted 3-Month Moving Average
Source: Statistics Canada's Labour Force Survey-HRSDC SGEODEM

Employment by Industry – Seasonally adjusted data shows that most of the monthly employment decrease was in the Service sector.  Over the past year, the Goods sector grew slightly while the Service sector declined.

  • The services-producing sector had most of September’s employment losses.  This decline was concentrated in Trade while Professional, Scientific and Technical Services increased.
      
  • Employment in the goods-producing sector was essentially unchanged from August.  Losses in Manufacturing were offset by small gains in other industries.
      
  • Over the past twelve months, gains were made in the goods-producing sector, led by Construction.  Forestry, Fishing, Mining and Oil & Gas showed a notable decline.  Trade and Health and Social Assistance helping drive the yearly losses in the service-producing sector. 
Employment By Industry
        Monthly Variation  Yearly Variation 
 Seasonally Adjusted Data ('000)  Sept 2011  Aug 2011

 Sept 2010

 Number  %          Number  %         
Total Industry (000) 220.2 222.0 224.0 -1.8 -0.8% -3.8 -1.7%
Goods-Producing Sector 45.9 46.1 44.7 -0.2 -0.4% 1.2 2.7%
Agriculture 2.1 2.1 2.5 0.0 0.0% -0.4 -16.0%
Forestry, Fishing, Mining, Oil & Gas 14.1 14.0 15.8 0.1 0.7% -1.7 -10.8%
Utilities 1.9 1.6 1.7 0.3 18.8% 0.2 11.8%
Construction 18.2 18.1 15.5 0.1 0.6% 2.7 17.4%
Manufacturing 9.6 10.4 9.2 -0.8 -7.7% 0.4 4.3%
Services-Producing Sector 174.3

175.9

179.3 -1.6 -0.9% -5.0 -2.8%
Trade 37.7 38.9 40.5 -1.2 -3.1% -2.8 -6.9%
Transportation & Warehousing 10.1 10.4 11.7 -0.3 -2.9% -1.6 -13.7%
Finance, Insurance, Real Estate & Leasing 8.6 8.8 7.0 -0.2 -2.3% 1.6 22.9%
Professional, Scientific & Technical Services 8.9 8.3 7.5 0.6 7.2% 1.4 18.7%
Management, Administrative & Other Support 5.6 5.9 5.6 -0.3 -5.1% 0.0 0.0%
Educational Services 17.5 17.3 16.6 0.2 1.2% 0.9 5.4%
Health Care & Social Assistance 35.1 34.8 37.9 0.3 0.9% -2.8 -7.4%
Information, Culture & Recreation 7.1 7.0 9.3 0.1 1.4% -2.2 -23.7%
Accommodation & Food Services 12.1 13.4 13.2 -1.3 -9.7% -1.1 -8.3%
Other Services 11.5 11.4 10.9 0.1 0.9% 0.6 5.5%
Public Administration 20.3 19.4 19.0 0.9 4.6% 1.3 6.8%
"--" 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

The unadjusted industry data shows growth in goods-producing industries outweighing small losses in the service sector over the past year.  In the goods sector, gains were made in Construction and Mining and Oil & Gas while Fishing showed a decline.  Trade was relatively unchanged from last September while Social Assistance was the driver behind a decline in Health Care and Social Assistance.
Source: Statistics Canada’s Labour Force Survey – HRSDC SGEOIND & INDNL

Economic Regions – Results were mixed across the province.  Employment and labour force size increased in two economic regions over the past year while the other two regions showed a decline.  South Coast – Burin Peninsula was the only region show a notable increase in the unemployment rate from a year ago.  This was also the case in August. 

  • The Avalon Peninsula, which includes the St. John’s area, showed a decline in the unemployment rate of 0.8 percentage points to 9.4% between September 2010 and September 2011.  The unemployment rate was lowered because an increase in primarily full-time employment exceeded growth in the labour force.  Professional, Scientific and Technical Services, Public Administration and Educational Services showed notable gains from a year ago, while employment in Health Care and Social Assistance had the largest decrease. 
     
  • The South Coast – Burin Peninsula region experienced an increase in the unemployment rate of 3.0 percentage points to 21.1% between September 2010 and September 2011. This is because the decline in employment exceeded the drop in labour force size, leaving more people looking for work than a year ago.  Full-time employment losses outweighed some gains in part-time work.  Most of the employment loss was in service producing industries.
     
  • In the West Coast – Northern Peninsula – Labrador region, the unemployment rate fell by 1.6 percentage points over the last twelve months to 13.6% on the strength of full-time employment increases.  Employment grew faster than the expanding labour force, lowering the number of unemployed workers.  Employment growth was mainly in the Goods sector.
     
  • The unemployment rate for the Notre Dame – Central – Bonavista Bay region was relatively unchanged from twelve months earlier.  The region has experienced similar declines in the size of the labour force as well as employment.  Job losses were full-time in nature.  As a result, there were fewer people looking for work.  While employment levels decreased across a number of industries, Construction showed a notable gain from twelve months prior. 
Regional Breakout
Three Month Moving Averages Seasonally Unadjusted Data 

Sept 
2011 

 Sept 2010 Variation 

 Sept
2011

Sept
2010
 Variation
  Newfoundland and Labrador 1010 - Avalon Peninsula
Population 15+ ('000) 428.5 428.0 0.5 220.8 218.9 1.9
Labour Force ('000) 266.5 267.0 -0.5 147.3 146.4 0.9
Employment ('000) 234.4 233.4 1.0 133.5 131.4 2.1
   Full-Time ('000) 203.4 203.1 0.3 115.7 113.5 2.2
   Part-Time ('000) 31.0 30.2 0.8 17.7 17.9 -0.2
Unemployment ('000) 32.1 33.6 -1.5 13.9 15.0 -1.1
Participation Rate (%) 62.2 62.4 -0.2 66.7 66.9 -0.2
Unemployment Rate (%) 12.0 12.6 -0.6 9.4 10.2 -0.8
Employment Rate (%) 54.7 54.5 0.2 60.5 60.0 0.5
  1020 - South Coast - Burin Peninsula 1030 - West Coast - Northern Peninsula - Labrador
Population 15+ ('000) 30.5 31.0 -0.5 86.7 87.2 -0.5
Labour Force ('000) 17.1 18.2 -1.1 52.3 51.2 1.1
Employment ('000) 13.4 14.9 -1.5 45.2 43.3 1.9
   Full-Time ('000) 11.4 13.2 -1.8 39.8 38.2 1.6
   Part-Time ('000) 2.1 1.7 0.4 5.4 5.1 0.3
Unemployment ('000) 3.6 3.3 0.3 7.1 7.8 -0.7
Participation Rate (%) 56.1 58.7 -2.6 60.3 58.7 1.6
Unemployment Rate (%) 21.1 18.1 3.0 13.6 15.2 -1.6
Employment Rate (%) 43.9 48.1 -4.2 52.1 49.7 2.4
  1040 - Notre Dame - Central Bonavista Bay St-John's Nfld.
Population 15+ ('000) 90.5 91.1 -0.6 161.1 159.6 1.5
Labour Force ('000) 49.8 51.3 -1.5 114.9 112.5 2.4
Employment ('000) 42.4 43.8 -1.4 106.6 103.2 3.4
   Full-Time ('000) 36.5 38.2 -1.7 93.0 89.3 3.7
   Part-Time ('000) 5.9 5.5 0.4 13.6 13.9 -0.3
Unemployment ('000) 7.4 7.5 -0.1 8.2 9.4 -1.2
Participation Rate (%) 55.0 56.3 -1.3 71.3 70.5 0.8
Unemployment Rate (%) 14.9 14.6 0.3 7.1 8.4 -1.3
Employment Rate (%) 46.9 48.1 -1.2 66.2 64.7 1.5
Notes:  "--" indicates number suppressed due to high sample variance
Total may not add due to rounding
Source: Statistics Canada’s Labour Force Survey – HRSDC Tables SGEODEM

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

For more information, visit our website at www.workingincanada.gc.ca

Please note that labour market news summaries are now available in separate publications for each region of the province, called the Labour Market Monitor.
About the Local Labour Market