P.E.I. 2009 Annual Labour Market Perspective

Prince Edward Island
2009 Economic Highlights

• According to the Conference Board of Canada, the Prince Edward Island economy faired relatively well in 2009, and remained somewhat sheltered from the adverse economic conditions that hindered most other provinces.
  
  
• The Conference Board estimates that the Island economy expanded by 0.4% in 2009-the only province in Canada with positive economic growth forecast.
  
  
• Although economic conditions in PEI were relatively favourable in 2009, the province did face some pressures: employment contracted which pushed the unemployment rate to a 7 year high; retail spending softened; shipments of manufactured food products fell to a 10 year low; and exports declined.
  
  
• On the positive, government investment in public infrastructure in 2009 was a key driver for the Island economy; residential construction activity was strong; and shipments of non-food products increased.
  
  
• For 2010, the Conference Board of Canada projects improved economic conditions for PEI with 1.9% growth forecast. Government spending and capital investment are identified as key growth factors for the Island economy.
  
  

National and International Highlights

Canadian Economy

• According to the Conference Board, the Canadian economy is estimated to have contracted by about 2.5% in 2009, largely due to declines in consumer spending, private investment and exports.
  
  
• Labour market conditions were not favorable in 2009, with employment having contracted by around 1.5%. In addition, the national unemployment rate rose to a 10 year high of 8.3%.
  
  
• The Conference Board projects improved economic conditions for Canada in the near term-driven largely by government's economic stimulus program (which is weighted by infrastructure investment). The Canadian economy is projected to increase by 2.8% in 2010.
  
  

U.S. Economy

• According to the U.S. Bureau of Economic Analysis, the U.S. economy contracted in 2009, by 2.4%, following modest growth in 2008.
  
  
• The economy in 2009 experienced reduced investment in residential and non-residential construction, a decline in exports and lower personal consumption expenditures.
  
  
• According to the Conference Board, the U.S. economy is currently in a state of recovery with broad-based growth experienced across most sectors of the economy.
  
  

Prince Edward Island Labour Market: Statistics at a Glance!

The labour force in Prince Edward Island totaled 79,000 in 2009, a slight increase over 2008 estimates.

In November 2009, the labour force reached a record 80,400 persons-the first time ever that the Island labour force exceeded 80,000 people.

Increased participation by men was the key driver behind labour force growth in the province. There were 40,500 males in the labour force in 2009, an increase of 700 (1.7%) over the previous year.

The number of women in the labour force totaled 38,500 in 2009, which decreased slightly by 400 (-1.0%) from 2008.

As illustrated in the graph, the disparity of labour force participation between men and women is shown to have narrowed in recent years.

The age composition of the Island labour force in 2009 is as follows: youths aged 15-24 years made up 17.2% of the labour force; the core age group (i.e. 25-54 years) comprised 64.2%; and persons 55+ years was 18.5% of the total.

Compared to a decade ago, there was a slight shift in age composition, with more persons in the 55+ age category participating in the Island labour force.

PEI employment levels declined in 2009

On average, there were 69,500 persons employed in Prince Edward Island in 2009, about 700 less (-1.0%) than the year prior.

Despite the decline in 2009, employment levels reached an all-time high of 71,400 in November.

Full-time employment declined in 2009, but was partially offset by growth in part-time work. There was an average 12,000 persons in part-time employment in 2009, which is an increase of 6.2% over 2008. Part-time employment levels reached 13,400 in October which matched the all-time high set in February 2007.

There were 57,500 persons employed in full-time work in 2009, down by 2.4% compared to 2008.

Both the goods and services producing sectors experienced slight reductions in employment levels in 2009. Employment in the goods-sector, at 17,300 declined by 1.7% compared to 2008, and service-sector employment fell by 1.0%, to 52,200.

This was largely explained by reduced employment in manufacturing and retail. There were 8,800 people working in retail trade in 2009, down by 200 persons, or 2.2% compared to the prior year. Employment in manufacturing continued its downward trend in 2009, with 5,500 persons employed, 10% less than 2008.

Public sector an important source of jobs for Islanders

About a third of Island workers were employed in the public sector in 2009, which is among the highest ratios in the country. The share of public sector workers in PEI is almost 9 percentage points higher than the national average.

The percentage of self-employed workers in PEI fell short of the national average, but exceeded the other Atlantic provinces in 2009, on average.

The classification of workers in Prince Edward Island changed marginally over the past decade, with more employed in the public sector.

The self-employed class comprised 15% of employed persons in 2009, down by 3 percentage points compared to 2000. On the flip-side, employment in the public sector rose by 3.5%. About 57% of workers were employed in the private sector in 2009, virtually unchanged compared to a decade ago.

PEI labour market highly seasonal

Prince Edward Island has among the highest rates of employment seasonality in the country. In 2009, employment levels varied by approximately 10,600 between the Winter months (63,700 on average) and the Summer months (74,300) for a seasonal factor of 16.7%. This compares to 3% nationally.

Although PEI is highly seasonal, it has become less so over the past two decades. In the early 1990's for example, employment levels varied by nearly 12,000 between the low and high employment seasons for a seasonal factor of about 24%.

The unemployment rate in PEI reached 12% in 2009, an increase of 1.2 percentage points compared to 2008. PEI had the second highest unemployment rate in the country in 2009. The national unemployment rate averaged 8.3%, which ranged from a low of 4.8% in Saskatchewan to a high of 15.5% in Newfoundland and Labrador.

In April 2009, the unadjusted unemployment rate in PEI was as low as 7.5% in June and as high as 17.3% in April-the highest monthly rate since January 2002.

In PEI, there were a total of 9,055 beneficiaries of regular employment insurance in 2009, an increase of about 9% over 2008. This was the highest level of beneficiaries in almost a decade. Since 2000, the number of beneficiaries receiving EI payments has been in decline for most of the decade.

The total number of beneficiaries in 2009 peaked in March at 12,424, the highest monthly count since March 2006.

There were a total of 9,500 persons that were unemployed in PEI in 2009, and compared to a decade ago, the duration of unemployment was higher.

In 2009, there were 27% more people unemployed for a duration of 14-25 weeks compared to 2000, and about 8% more were unemployed for a period of 5-13 weeks. The majority (60%) were unemployed for a period of 13 weeks or less in PEI which is about the national average (62%).

Island participation remains among the highest in the country

Although PEI is subject to a relatively high degree of seasonality, its participation rate has historically been among the highest in the country. In fact, the Island participation rate has exceeded the national average every year since 1994.

The participation rate for PEI in 2009 was 68.1%, down slightly from 68.7% in 2008. The decline was largely explained by reduced participation by youths (persons 15-24 years of age).

Employed labour force is more educated in PEI

The employed labour force in Prince Edward Island is more educated compared to a decade ago. In 2009, almost 20% of people working in PEI had a university degree, which is an increase of 5 percentage points compared to 2000.

On the flip-side, there were fewer workers in PEI with less than high school education. The proportion of workers with at least high school certification showed slight gains over the past decade.

Layoffs and school key reasons for job leavers in 2009

There were a total of 16,400 persons that left their jobs for various reasons in 2009-that either became unemployed or left the labour force altogether.

The majority of people (82%) that left their jobs either left due to layoffs or school-most were due to layoffs (64%).

Other reasons for job leavers include personal illness, dissatisfaction with their jobs, and retirement.

Wages in PEI well short of the national average in 2009

According to Statistics Canada, the median hourly wage rate across all industries in PEI was $15.33 in 2009, about 80% of the national wage ($19.25). For PEI, wages were highest in public administration and education, and lowest in accommodation & food services, and in agriculture.

PEI wages in agriculture, health and education were closest to national rates; while wages in manufacturing, business services and construction fell significantly short. Wages in forestry/fishing were about half the national rate.

2009 Labour Market Announcements and impacts on jobs

For more information regarding this report, please contact:

Jamie Dooks,
Economist, Service Canada
Telephone: (902) 566-7750
Email: jamie.dooks@servicecanada.gc.ca