Monthly Labour Market Bulletin - September 2010
Labour Force Trends – Employment reached an all-time high in September as full-time employment gains, mostly among youth, pushed down the unemployment rate to 13.5%, the lowest it’s been since July 2008. Labour force participation and the proportion of the population employed reached record highs in September.
- Newfoundland and Labrador recorded the fastest employment growth in the country for the second consecutive month as full time jobs continued to surge ahead in September. Over the past year, employment has increased by 11,000 or 5.3%, the fastest of any province and more than twice the national average of 2.1%.
- Strong employment growth encouraged more people to enter the work force in September, which limited the improvement in the unemployment rate to 13.5% from 14% a month earlier. Labour force participation reached an all-time high in September, surpassing the previous peak established in May. Despite the improvement, the provincial participation rate is the lowest in the country at 61.1%. The employment rate also reached an all-time high in September but is still the lowest in the country at 52.8%.
| Seasonally Adjusted Data | September 2010 | August 2010 | September 2009 |
Monthly Variation Number % |
Yearly Variation Number % |
||
|---|---|---|---|---|---|---|---|
| Population 15 + ('000) | 432.0 | 431.9 | 429.7 | 0.1 | 0.0 % | 2.3 | 0.5 % |
| Labour force ('000) | 263.8 | 259.9 | 256.4 | 3.9 | 1.5 % | 7.4 | 2.9% |
| Employment ('000) | 228.3 | 223.4 | 216.9 | 4.9 | 2.2% | 11.4 | 5.3% |
| Full-time ('000) | 195.2 | 189.1 | 184.9 | 6.1 | 3.2% | 10.3 | 5.6 % |
| Part-time ('000) | 33.1 | 34.2 | 31.9 | -1.1 | -3.2% | 1.2 | 3.8% |
| Unemployment ('000) | 35.5 | 36.5 | 39.6 | -1.0 | -2.7% | -4.1 | -10.4% |
| Participation Rate | 61.1 | 60.2 | 59.7 | 0.9 | - | 1.4 | - |
| Unemployment Rate | 13.5 | 14.0 | 15.4 | -0.5 | - | -1.9 | - |
| Employment Rate | 52.8 | 51.7 | 50.5 | 1.1 | - | 2.3 | - |
Note(s): Total may not add due to rounding |
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Source: Statistics Canada's Labour Force Survey |
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- Unlike August’s employment increase which was shared among adult men and women (25+), job gains in September went mostly to youth (15 – 24). This is in stark contrast to the national picture which saw fewer young people employed. Despite last month’s improvement provincially, the youth unemployment rate remains high at 20.5%, compared to 14.9% nationally. Unemployment rates for both adult men and women improved marginally to 14.7% and 9.8% respectively.
Employment by Industry – Retail/Wholesale Trade generated most of the new jobs in September. Service industries have provided all of the job gains over the last year. Services account for four out of five jobs in the province.
- Employment in the Goods-Producing sector showed little change in September. An increase in Construction jobs was off set by losses in other areas, most notably in Manufacturing. The number of people employed in the Good-Producing sector declined over the past year, given fewer jobs in Manufacturing and Construction.
- All of September’s employment increase occurred in Service-Producing industries. Job growth was particularly strong in Retail / Wholesale Trade at over 10%. Health Care and Social Assistance, Public Administration, and Business, Building and Other Support Services also posted gains.
- Newfoundland and Labrador experienced the strongest employment growth in the country over the past year due entirely to more Service Sector jobs. The number of jobs in the Goods-Producing industries declined slightly. Several Service Sector components recorded double digit job growth including Retail / Wholesale Trade; Public Administration; Information, Culture and Recreation as well as Health Care and Social Assistance.
Seasonally Adjusted Data |
September 2010 | August 2010 |
September 2009 | Monthly Variation Number % |
Yearly Variation Number % |
||
|---|---|---|---|---|---|---|---|
| Total | 228.2 | 223.4 | 216.9 | 4.8 | 2.1% | 11.3 | 5.2% |
| Goods-Producing Sector | 45.2 | 45.6 | 47.3 | -0.4 | -0.9% | -2.1 | -4.4% |
| Agriculture | 2.4 | 2.6 | 1.0 | -0.2 | -7.7% | 1.4 | 140.0% |
| Forestry, Fishing, Mining, Oil and Gas | 15.7 | 15.9 | 14.9 | -0.2 | -1.3% | 0.8 | 5.4% |
| Utilities | 1.7 | 2.0 | 2.7 | -0.3 | -15.0% | -1.0 | -37.0% |
| Construction | 16.1 | 15.2 | 17.4 | 0.9 | 5.9% | -1.3 | -7.5% |
| Manufacturing | 9.3 | 9.9 | 11.4 | -0.6 | -6.1% | -2.1 | -18.4% |
| Services-Producing Sector | 183.0 | 177.8 | 169.6 | 5.2 | 2.9% | 13.4 | 7.9% |
| Trade | 41.9 | 37.9 | 35.7 | 4.0 | 10.6% | 6.2 | 17.4% |
| Transportation and Warehousing | 12.0 | 12.3 | 12.3 | -0.3 | -2.4% | -0.3 | -2.4% |
| Finance, Insurance, Real Estate and Leasing | 7.4 | 7.7 | 7.1 | -0.3 | -3.9% | 0.3 | 4.2% |
| Professional, Scientific and Technical Services | 7.5 | 7.4 | 7.1 | 0.1 | 1.4% | 0.4 | 5.6% |
| Management, Administrative & Other Support | 5.6 | 4.9 | 6.7 | 0.7 | 14.3% | -1.1 | -16.4% |
| Educational Services | 16.9 | 17.1 | 18.1 | -0.2 | -1.2% | -1.2 | -6.6% |
| Health Care and Social Assistance | 38.7 | 37.4 | 34.4 | 1.3 | 3.5% | 4.3 | 12.5% |
| Information, Culture and Recreation | 9.6 | 9.0 | 8.3 | 0.6 | 6.7% | 1.3 | 15.7% |
| Accommodation and Food Services | 13.1 | 13.3 | 13.7 | -0.2 | -1.5% | -0.6 | -4.4% |
| Other Services | 11.4 | 12.7 | 10.1 | -1.3 | -10.2% | 1.3 | 12.9% |
| Public Administration | 18.9 | 18.1 | 15.9 | 0.8 | 4.4% | 3.0 | 18.9% |
Notes: '--' indicates number suppressed due to high sample variance. |
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Economic Regions – South Coast-Burin Peninsula region posts fastest employment growth over the last year; Notre Dame – Central Bonavista Bay unemployment rate shows the most improvement.
- The unemployment rate for the Notre Dame Bay – Central Bonavista Bay region improved to 14.5% from 17.9% a year ago. A slight increase in employment combined with a smaller labour force generated the improvement. The labour force in the area is shrinking as the population ages. The population 55+ has increased by 16% while the population 25 – 54 has declined by 7% over the last year.
- Despite fewer jobs in the area, the unemployment rate for the West Coast-Northern Peninsula-Labrador region improved to 15% in September, down from 15.3% a year ago. A shrinking labour force more than offset the decline in employment. While the overall population for the area was unchanged, those 25 – 54 declined by 12% and those 55+ increased by 20%.
- The South Coast – Burin Peninsula posted the fastest employment growth of any region in the province over the last year. The unemployment rate showed only marginal improvement given strong labour force growth. The area participation rate increased dramatically to 58.6% from 50.2% a year ago. Unlike other rural areas with a rapidly aging population, this region saw an increase in the population 25 – 54 and a decline in the population 55 and over.
- Strong employment growth on the Avalon Peninsula, which includes the capital city, pushed the unemployment rate down to 10.1% from 11.2% a year earlier, with rural and urban parts of the region sharing in the job gains. Both the participation rate and the employment rate were up compared to a year ago, reflecting an improved labour market, particularly in the St. John’s area.
- The unemployment rate in the St. John’s area improved to 8.2% in September, down from 8.6% a year ago. A growing population and increasing labour force limited the decline in the unemployment rate despite rising employment levels. The St. John’s area has accounted for all the growth in the adult population in the province over the past year.
Three Month Moving Averages |
September |
September |
Variation |
September |
September |
Variation |
|---|---|---|---|---|---|---|
|
Newfoundland and Labrador |
St. John's, Nfld |
||||
Population 15 + (‘000) |
431.8 |
429.2 |
2.6 |
161.1 |
158.0 |
3.1 |
Labour Force (‘000) |
270.8 |
265.1 |
5.7 |
114.1 |
110.6 |
3.5 |
Employment (‘000) |
237.0 |
228.5 |
8.5 |
104.8 |
101.1 |
3.7 |
Full-Time (‘000) |
206.6 |
201.6 |
5.0 |
90.9 |
89.1 |
1.8 |
Part-Time (‘000) |
30.5 |
26.9 |
3.6 |
13.9 |
12.1 |
1.8 |
Unemployment (‘000) |
33.7 |
36.6 |
-2.9 |
9.3 |
9.5 |
-0.2 |
Participation Rate (%) |
62.7 |
61.8 |
0.9 |
70.8 |
70.0 |
0.8 |
Unemployment Rate (%) |
12.4 |
13.8 |
-1.4 |
8.2 |
8.6 |
-0.4 |
Employment Rate (%) |
54.9 |
53.2 |
1.7 |
65.1 |
64.0 |
1.1 |
|
1010 - Avalon Peninsula |
1020 - South Coast - Burin Peninsula |
||||
Population 15 + (‘000) |
219.0 |
215.8 |
3.2 |
31.4 |
31.9 |
-0.5 |
Labour Force (‘000) |
147.4 |
142.0 |
5.4 |
18.4 |
16.0 |
2.4 |
Employment (‘000) |
132.5 |
126.1 |
6.4 |
15.1 |
13.1 |
2.0 |
Full-Time (‘000) |
114.7 |
110.8 |
3.9 |
13.4 |
11.8 |
1.6 |
Part-Time (‘000) |
17.8 |
15.3 |
2.5 |
1.7 |
1.3 |
0.4 |
Unemployment (‘000) |
14.9 |
15.9 |
-1.0 |
3.3 |
2.9 |
0.4 |
Participation Rate (%) |
67.3 |
65.8 |
1.5 |
58.6 |
50.2 |
8.4 |
Unemployment Rate (%) |
10.1 |
11.2 |
-1.1 |
17.9 |
18.1 |
-0.2 |
Employment Rate (%) |
60.5 |
58.4 |
2.1 |
48.1 |
41.1 |
7.0 |
|
1030 - West Coast - Northern Peninsula - Labrador |
1040 - Notre Dame - Central Bonavista Bay |
||||
Population 15 + (‘000) |
88.3 |
88.1 |
0.2 |
93.2 |
93.4 |
-0.2 |
Labour Force (‘000) |
52.0 |
52.9 |
-0.9 |
53.0 |
54.3 |
-1.3 |
Employment (‘000) |
44.1 |
44.7 |
-0.6 |
45.3 |
44.6 |
0.7 |
Full-Time (‘000) |
39.0 |
40.7 |
-1.7 |
39.5 |
38.3 |
1.2 |
Part-Time (‘000) |
5.2 |
4.1 |
1.1 |
5.8 |
6.2 |
-0.4 |
Unemployment (‘000) |
7.8 |
8.1 |
-0.3 |
7.7 |
9.7 |
-2.0 |
Participation Rate (%) |
58.9 |
60.0 |
-1.1 |
56.9 |
58.1 |
-1.2 |
Unemployment Rate (%) |
15.0 |
15.3 |
-0.3 |
14.5 |
17.9 |
-3.4 |
Employment Rate (%) |
49.9 |
50.7 |
-0.8 |
48.6 |
47.8 |
0.8 |
Note: : '--' indicates number suppressed due to high sample variance. |
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Events
Aquaculture
- Badger Bay Mussel Farms of Triton will receive $25,000 from the provincial government to develop new packaging for its products. The president of the company says this will further their position in the North American marketplace. They now operate more than 700 hectares of mussel growing waters and produce more than 3 million pounds of mussels each year.
o Source: VOCM News, 2010-09-02 - Northern Harvest Sea Farms Ltd. (NHSF) will invest $23.5 million to expand their marine cage operations in the Coast of Bay. This company will be investing over $100 million in Newfoundland over the next several years. It is anticipated that by 2013, NHSF will create approximately 600 jobs in the province. About 450 of these jobs are expected to be created in the processing and service sectors within the aquaculture industry, while another 150 jobs will be directly on aquaculture sites or at the hatchery.
o Source: The Coaster, 2010-09-27 - The Barry Group of Companies is currently modernizing its processing plant in St. Alban’s, as it intends to be a major player in the aquaculture industry. Nature Sea Farms Inc. (NSFI) has been processing fish at the St. Alban’s plant since 2006. With this upgrade, they intend to double their fish processing capacity form 90,000 lbs. per day to 180,000 lbs. They hope to become a year-round facility with additional jobs being added in the future as the capacity of the plant grows.
o Source: The Coaster, 2010-09-27
Construction/Education
- A $6 million contract has been awarded to Eastern Contracting Limited of St. John’s to begin construction of an extension to Balbo Elementary in Shoal Harbour. Among other things, the extension will include ten new classrooms which will accommodate an additional 250 children. Work is expected to begin in the near future and should be completed by next fall.
o Source: VOCM News, 2010-09-14
Construction/Health
- The provincial government announced $4.7 million for equipment purchases and repairs to Western Memorial Hospital in Corner Brook. The government will also spend approximately $11.8 million this year for the site selection, planning and initial preparation for the new hospital. A contract for asphalt paving, curbs, and sidewalks was tendered in June. Site grading was expected to begin in September. Construction of the new hospital is anticipated to begin in August 2012 with occupancy expected in April 2017.
o Source: Provincial Government News Release, 2010-09-09 - The Bonavista Peninsula Health Centre will receive approximately $397,500 in funding from the provincial government. The funds will allow the purchase of new capital equipment and repairs and renovations to be completed. The Health Centre, which provides acute and long-term care services for residents of the Bonavista area, has received approximately $2.2 million in funding since 2003.
o Source: The Telegram, 2010-09-01
General
- The Town of Lewisporte will receive a federal grant of $263,000 which will be a great start to development in the area, says Mayor Brian Peckford. The funding will aid in the implementation of phase one of the Town’s downtown redevelopment plan. The project will include streetscape improvements, lighting, benches and work on curbs, gutters and sidewalks.
o Source: VOCM News, 2010-09-16 - Brink’s Canada employees in the metro and central areas of Newfoundland have ratified a tentative agreement. The Brink’s workers who are represented by NAPE voted September 14th. Details have not yet been released.
o Source: VOCM News, 2010-09-15
Health
- The Arnold’s Cove Volunteer Fire Department will receive funding of $200,000 from the provincial government. This will allow the purchase of a new emergency vehicle and construction of an ambulance base in Arnold’s Cove, which is expected to be in place later this fall. The area currently has no ambulance, with the closest located in Clarenville. Tom Osbourne, Mayor of Arnold’s Cove, says, once the new ambulance is in place, it will allow for a much quicker response time when emergency calls are received.
o Source: The Telegram, 2010-09-01 - The provincial government will provide $877,000 in funding to the Dr. G.B. Cross Memorial Hospital in Clarenville. The funding will provide capital equipment, repairs and renovations. Included in the plans are purchases of cardiac and respiratory equipment, enhancing the hospital’s operating room and infection control procedures. Since 2003, approximately $8.2 million in provincial funding has been invested in the Dr. G.B. Cross Memorial Hospital.
o Source: The Telegram, 2010-09-02
Manufacturing
- Northstar Network of St. John’s has more than doubled its original $7.5 million contract with Lockheed Martin to $16 million. The company will manufacture finished components and assemblies for wing upgrades and will be responsible for supplying approximately 400 parts and assemblies per aircraft, or about one-fifth of the total parts required under a wing upgrade program. The company currently employs about 25 people but this lucrative contract could mean an expansion for the company.
o Source: The Telegram, 2010-09-11 - Terra Nova Shoes in Harbour Grace has secured a $6.1 million contract from the Department of National Defense to produce 42,000 pairs of special Navy boots. This allows them to rehire some of the nearly 60 people who were laid off earlier this year.
o Source: VOCM News, 2010-09-15
Manufacturing (Fish Processing)
- During the first week of September, the provincial government announced that the Gaultois Fish Plant is permanently closed. Workforce adjustment measures will be made available to approximately 70 displaced plant workers. The plant has not operated since 2009 and has only seen sporadic operation since Fishery Products International ended its operation in Gaultois in 1992. While the plant is permanently closed for processing wild fish, it could reopen to process farmed fish at some point in the future. The Town has already been talking to some companies about the possible use of the Gaultois plant as a processing site, although no official decisions have been made.
o Source: The Telegram, 2010-09-08 - After much damage caused by Hurricane Igor to Ocean Choice International’s fish processing plant in Port Union, approximately 200 employees are out of work. Martin Sullivan, CEO with Ocean Choice, says the damage is too extensive to reopen the plant this season. He states that the company has had discussions with the union and the province to see what may be done to help employees. Workers are short as much as six to eight weeks work due to the plant closure before the end of the normal season. In addition, because of poor fall weather conditions causing production to be ‘off and on,’ some workers had also not received an income for three to four weeks prior to the hurricane damage.
o Source: The Telegram, 2010-09-30.
Mining
- Mountain Lake Resources, a Nova Scotia-based junior exploration company, has been drilling for gold in the Valentine Lake area near Buchans since 2009. Its partner, Marathon PGM, is responsible for the operation of the project. Project manager, Sherry Dunsworth, states they are getting very good results with their aggressive program. The property has a reserve so far of 443,000 ounces. If a gold mine becomes a reality, the two companies involved will form a new company called Marathon Gold. At nearby Victoria Lake, Leprechaun Pond is also a flooded bog and it was determined that a different drilling technique is needed at that location, which will be conducted by Springdale Forestry. Holes around Leprechaun Pond are showing the region as the first defined gold resource within the Valentine Lake property. Mountain Lake and Marathon are drilling more holes as part of the current program to be completed in October. It is anticipated that Marathon Gold’s operation will be a 3 x 4 kilometre open pit mine, with a depth of 400-metres.
o Source: The Telegram, 2010-09-14 - The provincial government has appointed an outside mediator to try and negotiate a settlement to the strike at Voisey's Bay. Vale Inco and Union representatives started new meetings on September 19th. Workers have been on strike for more than a year.
o Source: Provincial Government News Release, 2010-09-16 - Tata Steel, one of the world's largest steel corporations from India, has announced a joint venture with New Millennium Capital Corporation to develop iron ore deposits in Labrador. Tata Steel will take four million tonnes of the iron ore per year from the area over the next five or six years. That amount is expected to grow to about 26 million tonnes per year by 2016. New Millennium has stated as many as 1,100 jobs may be created in this project.
o Source: VOCM News, 2010-09-22
Oil and Gas
- Worley Parsons Canada, headquartered in Australia, has secured the contract to design and build the steel topsides modules that will sit on top of the concrete gravity base structure (GBS) of the multi-billion dollar Hebron production platform. The total contract is worth US$285 million over the next five years, but will provide US$61 million in revenue in 2011 alone to oversee the engineering and design work. Construction of the Hebron production platform is scheduled to begin in 2012. There are seven topsides modules: a) the process and utilities module (the biggest and most complex of the topsides modules) will be built at an international shipyard; b) three modules – the helideck, flareboom and the lifeboat station – will be built in the province; c) three modules - accommodations unit, drilling support module, and the drilling derrick will be built here in the province if there is sufficient skilled labour and capacity at local fabrication yard to do the work.
o Source: The Telegram, 2010-09-02
Retail
- A new grocery store, Kevin’s No Frills, has opened up in the Cedar Plaza, Paradise. The store offers hard discounts to its customers. There are currently three other locations in Atlantic Canada.
o Source: VOCM News, 2010-09-15
Transportation
- Funding in the amount of $125,608 will be provided by ACOA to the Town of Gander to help attract foreign investment in its aerospace industry. The funding will allow representatives of the town to take part in trade shows in the United States and Europe, which will enable them to develop partnerships in the global aerospace sector and improve business relationships within the industry. They will also hire a consultant to work on business opportunities within the sector over the next year. Gander Mayor, Claude Elliott, states the funding will allow them to improve the aerospace sector in their area, resulting in job creation and sustained economic development for the region.
o Source: The Telegram, 2010-09-17
Green Initiatives
- North Atlantic Refining Co. Ltd. is currently waiting on approval of an environmental assessment before beginning the $300-million upgrade to a “debottlenecking” project at the Come By Chance Refinery. Most of the pumps, heat exchangers, compressors and process vessels will be modified or replaced. In addition, a new crude storage tank will be constructed. These upgrades will improve energy efficiency and reduce emissions by 20 - 25 percent. The project is expected to begin this fall and be completed in 2011. Approximately 750 trades’ people such as welders, pipe fitters and electricians will be involved in this debottlenecking project. Crude production will increase from 115,000 to 130,000 barrels; however, this will not mean that there will be more long-term jobs at the facility. There are currently 500 people working at the refinery.
o Source: The Telegram 2010-09-03
Prepared by: Labour Market Information Unit of Service Canada
Planning, Policy & Partnerships Unit of Service Canada