P.E.I. 2010 Annual Labour Market Perspective
Prince Edward Island
2010 Economic Highlights
- The Prince Edward Island economy strengthened in 2010 after having experienced a slight contraction in the prior year. Although PEI faired better than most during the 2008-09 Canadian recession, it was by no means immune to the effects of the global economic downturn.
- According to Statistics Canada, the PEI economy declined marginally in 2009, by 0.1%. This compares to a 2.5% decline nationally. The impact of the recession in 2009 was largely absorbed by the Western provinces, Ontario and Newfoundland & Labrador.
- The PEI Department of Finance estimates that the provincial economy rebounded in 2010, with real GDP growth of 1.9%. Factors contributing to growth in 2010 include: continued federal investment under Canada's Economic Action Plan; improved labour market conditions (lower unemployment); and a rebound in consumer spending. Factors that limited economic growth in 2010 include continued weakness in the manufacturing industry and reduced export volumes.
- For 2011, PEI Department of Finance projects that economic conditions will continue to improve with 1.7% growth forecast. Employment growth and ongoing capital investment are identified as key growth factors for the Island economy.
National and U.S. Highlights
Canadian Economy
- According to Finance Canada, the Canadian economy rebounded in 2010 following the effects of the 2008/09 global economic downturn. Growth was estimated at 3% for the national economy in 2010.
- Fiscal measures, such as the Canadian Economic Action Plan, combined with accommodative monetary policy initiatives, helped to mitigate the impact of the global recession. As a result, Canada faired better than most other industrialized countries since 2008.
- The Department of Finance projects that the Canadian economy will continue to expand in 2011 at about the current pace, with real GDP growth of 2.5% forecast.
U.S. Economy
- According to the U.S. Bureau of Economic Analysis, the U.S. economy strengthened in 2010 after having contracted in 2009 due to the recession. Real GDP growth in the U.S. expanded by 2.8% in 2010 and compares to a 2.6% contraction in the year prior.
- The economy in 2010 benefited from upturns in exports; fixed investment; consumer spending and federal government expenditures.
- According to the Conference Board, the economic recovery in the U.S. is projected to continue in 2011, driven in large part by fiscal policy and other stimulative initiatives.
Prince Edward Island Labour Market: Statistics at a Glance!
| 2010 / 2009 | 2010 / 2001 | ||||||
|---|---|---|---|---|---|---|---|
| Group | 2001 | 2009 | 2010 | Level | Percent | Level | Percent |
| Population | 107.8 | 115.6 | 117 | 1.4 | 1.2 | 9.2 | 8.5 |
| Labour Force | 72.3 | 78 | 79.5 | 1.5 | 1.9 | 7.2 | 10.0 |
| Employment | 63.6 | 68.6 | 70.6 | 2 | 2.9 | 6.9 | 10.8 |
| Full-time | 53.5 | 56.8 | 57.8 | 1 | 1.8 | 4.3 | 8.0 |
| Part-time | 10.1 | 11.8 | 12.8 | 1 | 8.5 | 2.7 | 26.7 |
| Unemployment | 8.6 | 9.4 | 8.9 | -0.5 | -5.3 | 0.3 | 3.5 |
| Not in Labour Force | 35.5 | 37.6 | 37.6 | 0 | 0.0 | 2.1 | 5.9 |
| Unemployment Rate | 11.9 | 12.1 | 11.2 | -0.9 | -7.4 | -0.7 | -5.9 |
| Participation Rate | 67.1 | 67.5 | 67.9 | 0.4 | 0.6 | 0.8 | 1.2 |
| Employment Rate | 59 | 59.3 | 60.3 | 1 | 1.7 | 1.2 | 2.0 |
| Source: Statistics Canada Labour Force Survey Year in Review 2010 | |||||||
| 2010 / 2009 | 2010 / 2001 | ||||||
|---|---|---|---|---|---|---|---|
| 2001 | 2009 | 2010 | Level | Percent | Level | Percent | |
| Total, all industries | 63.7 | 68.6 | 70.6 | 2 | 2.9 | 6.9 | 10.8 |
| Goods-Producing Sector | 17.3 | 17.2 | 16.7 | -0.5 | -2.9 | -0.6 | -3.5 |
| Agriculture | 3.9 | 3.7 | 3.3 | -0.4 | -10.8 | -0.6 | -15.4 |
| Forestry & loggin with support activities | 0.3 | 0.2 | 0.0 | -0.2 | -100 | -0.3 | -100 |
| Fishing, hunting & trapping | 2.3 | 1.8 | 2.5 | 0.7 | 38.9 | 0.2 | 8.7 |
| Mining, oil & gas extraction | 0 | 0.3 | 0.2 | -0.1 | -33.3 | 0.2 | - |
| Utilities | 0 | 0.3 | 0.3 | 0 | 0.0 | 0.3 | - |
| Construction | 4.5 | 5.5 | 5.0 | -0.5 | -9.1 | 0.5 | 11.1 |
| Manufacturing | 6.1 | 5.4 | 5.3 | -0.1 | -1.9 | -0.8 | -13.1 |
| Services-Producing Sector | 46.4 | 51.4 | 54 | 2.6 | 5.1 | 7.6 | 16.4 |
| Wholesale trade | 1.3 | 1.2 | 1.5 | 0.3 | 25.0 | 0.2 | 15.4 |
| Retail trade | 8.5 | 8.6 | 8.8 | 0.2 | 2.3 | 0.3 | 3.5 |
| Transportation & warehousing | 2.4 | 2.2 | 2.1 | -0.1 | -4.5 | -0.3 | -12.5 |
| Finance, insurance, real estate and leasing | 2 | 2.6 | 2.5 | -0.1 | -3.8 | 0.5 | 25.0 |
| Professional, scientific and technical services | 2.4 | 2.1 | 2.7 | 0.6 | 28.6 | 0.3 | 12.5 |
| Business, building & other support | 1.9 | 2.6 | 2.8 | 0.2 | 7.7 | 0.9 | 47.4 |
| Educational services | 4.6 | 5.2 | 5.9 | 0.7 | 13.5 | 1.3 | 28.3 |
| Health care & social assistance | 7.3 | 7.9 | 8.7 | 0.8 | 10.1 | 1.4 | 19.2 |
| Information, culture and recreation | 2.7 | 2.5 | 2.6 | 0.1 | 4.0 | -0.1 | -3.7 |
| Accommodation and food services | 5.1 | 5.5 | 5.2 | -0.3 | -5.5 | 0.1 | 20. |
| Source: Statistics Canada Labour Force Survey Year in Review 2011 | |||||||
The Island labour force reached 79,500 in 2010, an increase of about 2% over 2009 estimates. That year, there was no growth in the PEI labour force due in large part to the impact of the 2008-09 global recession.
The labour force in PEI reached a record high of 81,500 in October 2010.
The distribution of men and women in the Island labour force is about the same, at 51% and 49% respectively. In 2010, the number of men in the labour force increased by 2.3% to 41,200; and the number of women increased by 1.6%.
As can be observed by the graph, the disparity of labour force participation by gender is shown to have narrowed somewhat over the past decade. In the later half-decade, there was on average 4% more men than women in the labour force, which is down from 6% between 2001-2005. Historically, the gender gap was much more significant in the late 1970's, when there were 66% more men than women that participated in the labour force.
The core-age group (persons aged 25-54 years) comprised two-thirds of the Island labour force in 2010. The 55 years and over grouping made up 20%; and youths (persons aged 15-24 years) 17%.
Over the past ten years, the composition in age groups shifted slightly toward an older workforce, with a greater share of persons in the 55+ age category and lesser in the core-age group.
There were 70,600 persons employed in Prince Edward Island in 2010, an increase of 2.9% from 2009. That year, employment contracted slightly as a result of the global economic downturn. Employment growth in 2010 represents the highest year-to-year gain over the past ten years for PEI. In addition, a record 72,600 persons were employed in April 2010.There were 70,600 persons employed in Prince Edward Island in 2010, an increase of 2.9% from 2009. That year, employment contracted slightly as a result of the global economic downturn. Employment growth in 2010 represents the highest year-to-year gain over the past ten years for PEI. In addition, a record 72,600 persons were employed in April 2010.
Of the 70,600 persons that were employed in 2010, a total of 57,800 (82%) were full-time and 12,800 part-time. Full-time employment increased in 2010 by 1.8%, but was not enough to recoup the 2.4% contraction experienced a year prior due to the economic downturn. The number of part-time workers increased by 8.5% in 2010, building on growth of 6.2% in 2009.
Upon review of historical labour market trends in past recessions (i.e. 1980/81, 1990/91 and 2008/09), the data showed that full-time employment levels contracted by an average 3.4% during these recessionary periods while part-time employment expanded by 7.5%.
Employment in the Island's service-sector expanded in 2010 following a slight contraction in 2009. There were 54,000 persons employed in service-producing industries, which is an increase of 5.1% from the previous year. The largest contributors to employment growth in 2010 include health care, educational services, and professional services.
Goods-sector employment declined for the fourth consecutive year in 2010, on an average annual basis. Employment totaled 16,700 persons that year, down by 2.9% from 2009 levels. The declining trend in employment since 2007 is largely explained by lower employment in manufacturing and to a lesser degree, agriculture. Over the past four years, employment in these goods-producing industries has declined by an average annual rate of 5% and 3% respectively.
PEI labour market highly seasonal, but becoming less so
Prince Edward Island is a very seasonal economy and has among the highest rates of employment seasonality in the country. In 2010, employment levels ranged from an average low of 67,200 during the Winter months to a high of 76,800 in the Summer. This is a seasonal variation of nearly 15% for the province. Newfoundland and Labrador has the highest seasonal factor at 16% and compares to about 8% for New Brunswick and Nova Scotia.
Although the Island economy is highly seasonal, it has become less so over the past two decades: for example, employment seasonality was as high as 27% in 1992. Growth in manufacturing and the evolution of non-traditional (emerging) industries helped to reduce seasonality in the PEI labour market.
Unemployment declined in PEI
The unemployment rate in PEI averaged 11.2% in 2010, which is down by 0.9 of a percentage point from 2009. The number of unemployed persons in the province rose sharply during the 2008-09 economic downturn, from 8,000 in 2007 (a 20 year low) to 9,400 in 2009, which is an increase of 18%.
Employment conditions improved in 2010 and unemployment declined in the province, by 5.3% from the previous year. The unemployment rate in PEI remains amongst the highest in the country (second behind Newfoundland and Labrador) and compares to 8% nationally.
According to HRSDC, there were a total 24,349 initial employment insurance claims submitted in 2010, which is a decline of 8.1% compared to 2009. That year, the number of claims rose by 4.5%.
The benefit rate for regular EI beneficiaries averaged $338.13 per week in 2010; and the average benefit period per claim was 26.5 weeks.
Island participation rate exceeds national average
Although the PEI labour market is subject to high seasonality, its participation rate is amongst the highest in the country, having averaged 67.9% in 2010. This is up slightly from the previous year. On an average annual basis, the participation rate in PEI has exceeded the national average every year since 1994; and has exceeded the other Atlantic provinces since 1976.
The participation rate for men has generally been higher relative to women, however the gap has narrowed over time. In 2010, the participation rate for men was 72.4% and for women, 63.6% which is a difference of 8.8 percentage points. This compares to a 15 percentage point differential twenty years ago.
2010 Labour Market Announcements and impacts on jobs
| Company | Status | Industry | Job Gains |
|---|---|---|---|
| Tube-Fab | Expansion | Manufacturing | 80 |
| Minigoo Fisheries | Opening | Manufacturing | 55-80 |
| Virtual Agent Services | Opening | Business support Services | 50 |
| Maid Marions | Opening | Accommodation / Food Services | 42 |
| Advantage Communications | Opening | Business Support Services | 40 |
| Sam's Restaurant | Opening | Accommodation / Food Services | 30 |
| Enable Health Care Canada | Opening | Business Support Services | 20 |
| Bio Vectra | Expansion | Manufacturing | 19 |
| Old Dutch Foods | Expansion | Manufacturing | 12 |
| The Regent | Opening | Arts and Entertainment | 10 |
| Provincial Correctional Centre | Expansion | Public Administration | 8 |
| Provincial Health | Expansion | Public Administration | 7 |
| Bella's Pizzaria | Opening | Accommodation / Food Services | 6 |
| Company | Status | Industry | Job Losses |
|---|---|---|---|
| Piazza Joes | Closure | Accommodation / Food Services | 35 |
| Island Chevrolet (GM) | Closure | Retail Trade | 34 |
| Burger King (Summerside) | Closure | Accommodation / Food Services | 20 |
| Movie Gallery | Closure | Arts and Entertainment | 5 |
For more information regarding this report, please contact:
Jamie Dooks,
Economist, Service Canada
Telephone: (902) 566-7750
Email: jamie.dooks@servicecanada.gc.ca