Monthly Labour Market Bulletin - October 2010

Labour Force Trends – Employment declined in October from the record high established a month earlier.  Newfoundland and Labrador showed the highest employment growth of any province in October, compared with the same month last year.

  • Despite job losses in October, the unemployment rate fell to 13%, its lowest level since June 2008 as a result of a decline in the labour force.  Most of the labour force decline can be attributed to fewer youth (15 – 24), although the number of adult men and women in the workforce declined as well.  Job losses were split almost evenly between adult women and youth, with part-time losses slightly exceeding the loss of full time jobs.

seasonally adjusted data

  • Labour market conditions improved for youth in October with the unemployment rate falling to 16.9% from 20.5% a month earlier.  The improvement means that the Newfoundland and Labrador youth unemployment rate is no longer the highest in the country and is approaching the national rate of 15%.  In contrast, the unemployment rate for adult men improved marginally to 14.4% but remained significantly higher than the national rate of 6.9%.  The unemployment rate for adult women is also higher in the province than it is nationally at 10.3% and 6.5% respectively.
  • Newfoundland and Labrador recorded the fastest employment growth in the country over the past year.  The provincial unemployment rate has fallen to 13%, down from 17 % a year ago, the largest improvement of any province.  Nationally, the unemployment rate declined from 8.4% to 7.9% over this period.

Newfoundland and Labrador Employment and Unemployment rates

Employment by Industry – Service sector employment declined in October but remains high compared to historical levels.  Support activities related to Mining and Oil and Gas pushed up employment in the Goods-Producing sector.

  • Employment in the Goods-Producing sector improved in October as support activity related to Mining and Oil and Gas increased.  Other components showed little change on a monthly basis.  Year over year, increases in Agriculture, Forestry and Mining and Oil and Gas support activity offset declines in Construction and Manufacturing to leave overall employment in Goods-Producing industries unchanged.
  • Service sector employment declined in October as fewer people were employed in Retail / Wholesale Trade, Transportation and Warehousing, Health Care and Social Assistance and Information, Culture and Recreation.  Despite the decline, employment in Service industries remains near last month’s record high.
  • Newfoundland and Labrador continued to lead the country in employment growth in October compared with the same month in the previous year, due entirely to more Service sector jobs.  Several Service industries recorded double digit employment growth including Retail / Wholesale Trade, Public administration, Health Care and Social Services, Information, Culture and Recreation as well as Other Services.

seasonally adjusted data
Economic Regions – Strong employment growth on the South Coast – Burin Peninsula in October compared to the same month of the previous year; the Notre Dame – Central Bonavista Bay unemployment rate shows the most improvement.

  • The South Coast – Burin Peninsula unemployment rate showed little improvement over the past year despite very strong employment growth in the area.  The region has recovered job losses brought on by the recession but an expanding labour force has limited the improvement in the unemployment rate.  The labour force participation rate for the area increased to 58.1% from 49.5% a year ago.
  • The unemployment rate for the West Coast – Northern Peninsula – Labrador region improved to 14.1% from 15.5% a year ago despite no change in employment.  A slightly smaller labour force led to the decrease.  The labour force in the area is shrinking as the population ages. The population 55+ increased over the past year while the population 25 – 54 has declined.
  • An increase in employment and a slightly smaller labour force has pushed down the unemployment rate for the Notre Dame – Central Bonavista Bay region to 15% from 18.4% a year ago.
  • Continued employment growth on the Avalon Peninsula, which includes the capital city, has pushed the area unemployment rate below 10% for the first time since January 2009.  Employment has surpassed pre-recession levels given growth in Retail/Wholesale Trade, Public Administration and Health and Social Services. Both rural and urban areas have benefited from the job gains.  The Avalon is the only economic region to experience population growth over the last year as St. John’s and surrounding areas expand.
  • The unemployment rate in the St. John’s area improved to 7.6% in October, down from 8.4% a year ago.  Employment has surpassed the pre-recession level of October 2008, but population growth and an expanding labour force has limited the improvement in the unemployment rate.  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 - Seasonally unadjusted

Events

Accommodations

  • Pacrim Hospitality Services Inc. is expected to soon resume work on the new 91-room Holiday Inn Express on Bennett Avenue in Deer Lake.  Winter weather won’t impact the construction and the completion date is set for May or June of 2011.  Once the hotel officially opens, between 25 and 35 full-time jobs will be created.  The company also plans to construct a restaurant within 12 to 18 months of completion of the hotel.  The restaurant will create another 60 to 80 jobs.
         o Source: The Telegram, 2010-10-16

Construction

  • Demolition has begun on the Canadian Forces Station in Pleasantville, St. John’s.  A $117 million consolidation project was awarded to Bird Construction Inc. of Halifax to build a new state of the art building to replace the existing 16 buildings currently located at the military base.  This project will create 630 direct jobs during the construction phase.  
         o Source:  The Telegram, 2010-10-26
  • The former department store, Woolworth’s on Water Street in St. John’s will get a new facelift in the coming months.  East Port Properties have already started the demolition process.  Once this is completed, construction will begin on a $40 million six-storey office building on the site.
         o Source:  The Telegram, 2010-10-26

Fishery

  • As a conservation and management measure, the Northwest Atlantic Fisheries Organization (NAFO) is considerably lowering the total allowable catch for some Newfoundland shrimp fishers for the next couple of years.  The reduction in shrimp quotas will be up to 40%.  The total allowable will be lowered from 30,000 tonnes this year to 19,000 next year and NAFO intends to lower it again in 2012 to 17,000 tonnes.  The targeted area of Newfoundland will be the section of ocean from Cape Spear to Cape Bonavista. The decrease in quota may impact the economic livelihoods of some fishers in the area, and may also have an impact on the number of fish plants in operation.
         o Source:  The Telegram, 2010-10-18
  • Help has been put in place for workers of the Ocean Choice fish plant in Port Union who were displaced due to damage caused at the plant by Hurricane Igor.  The provincial government will provide $275,000 through the Community Enhancement Employment Program.  This funding will be used to create six projects in the towns where the affected individuals live.  The projects will include town hall renovations and improvements to a municipal park, picnic area, pasture and walking trail.  Approximately 112 employees from the Ocean Choice fish plant are eligible for employment.
         o Source:  The Telegram, 2010-10-22

Mining

  • The Iron Ore Company of Canada is scheduled to open an office located in St. John’s in November 2010.  By having an office in St. John’s, the company will be better able to work with the province, external stakeholders, and make it easier for recruitment and possible expansions. 
         o Source:  The Telegram, 2010-10-02
  • Rambler Metals and Mining has begun development of a new mine near Baie Verte.  The company has already invested $40 million into the project and is expected to spend another $30 million by the end of 2011.  The Ming Mine should have an initial six-year mine life producing copper, gold and silver.  The actual physical construction is underway, employing 48 workers and an additional 22 contractors.  Rambler Metals plans to have the mine in production in the second half of 2011, creating 140 permanent jobs, plus many more from spin-off effects.
         o Source:  VOCM News, 2010-10-29

Oil and Gas

  • The Canada Newfoundland Offshore Petroleum Board has approved Hibernia’s development plan which will extend the life of Hibernia South. The plan will increase daily production at Hibernia and also extend the field life by another four years, into 2040.  The company plans to use existing oil production facilities and support infrastructure and will add sub-sea infrastructure.  Earlier this year, the provincial government purchased a ten percent equity stake for $30 million.
         o Source:  The Telegram, 2010-10-13

Retail

  • The YellowBelly Brewery Ltd. will be opening a corner store at 85 Bond Street in St. John’s.  The store will sell YellowBelly’s beer, grocery items and household necessities.  It is not currently known how many staff will be hired.
         o Source:  The Telegram, 2010-10-05

Transportation

  • Hunt’s Transport, located in Donovan’s Industrial Park of Mt. Pearl, plans to use barges to transport freight to the province via Argentia.  The company has secured land near the Argentia Port Authority and plans to have three new barges in place at Argentia by year-end.  Each barge can hold up to 50 loads, which can replace having 50 tractor trailers traveling along the highway.  This will be particularly advantageous during peak season in the construction industry, which coincides with the times when many tourists are also traveling on ferries and roads.
         o Source:  The Telegram, 2010-10-05
  • The Deer Lake Regional Airport Authority recently completed a 610 metre extension to its runway which increased the runway length to 2440 metres. The extended runway is expected to increase air and passenger traffic at the airport, maintain the jobs currently existing at the airport and act to increase economic activity in the area.
         o Source: The Western Star, 2010-10-22

Green Initiatives

  • ICUS, a manufacturer of environmentally friendly bio-pesticides and bio-fertilizers, will soon open a production plant in Donovans Industrial Park, Mount Pearl.  This new company will produce and export biological products for the agricultural industry.  The provincial government has invested $580,000 towards this initiative.  Training programs will be provided to existing employees.  The new production plant will start with six employees and expects to increase it to eighteen over the next few years.
         o Source:  Provincial Government News Release, 2010-10-08

Prepared by:  Labour Market Information Unit of Service Canada