Saskatchewan Labour Market Bulletin
December 2010
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Saskatchewan Labour Market Bulletin - December 2010 (PDF version, 157 kb)
The Labour Market Bulletin is produced monthly by economists and labour market analysts employed by Service Canada in the Western Canada and Territories Region.
Content is intended for personal and public non-commercial use.
Highlights in this Issue
- Provincial employment remains strong
- Provincial mid-year budget surplus
- Agreement on industrial corridor between Regina and Moose Jaw
- Muskowekwan First Nation to vote on agreement with Encanto Potash Corp.
- $6.5 million in government funds for research and development of crops with industrial applications
- Cameco signs agreement with Chinese nuclear power company
- Work continues on BHP Billiton Jansen potash mine
- $9.5 million budget for uranium exploration in UEX’s Western Athabasca Projects
We welcome your feedback.
E-mail: SK-LMI-Bulletin-GD@servicecanada.gc.ca
Mailing Address:
Editor, Labour Market Bulletin
Labour Market Information Services
Western Canada and Territories Region
Service Canada
1783 Hamilton Street
Regina, Saskatchewan, S4P 2B6
Economic Overview of Trends in Saskatchewan
For reasons well documented, including an agricultural season that can be described as bleak, 2010 proved to be a challenging year for the Saskatchewan economy. Provincial employment remains strong, but key indicators suggest that economic growth has been sluggish. According to a recent Conference Board of Canada forecast, Saskatchewan's real GDP will post a gain of just 0.5% this year.
And yet, there is reason for optimism. Agriculture is bound to recover in 2011, and mining and construction are poised for a big year due to expansion projects, particularly in the potash industry. Buoyed by growth in the goods-producing sector and the promise of a stronger showing in the services-producing sector, GDP should increase by 4.4% in 2011, according to the same Conference Board of Canada forecast.
The number of Saskatchewan jobs grew slightly between October and November, due primarily to increased part-time employment in the services-producing sector. Meanwhile, full-time employment dropped in the province last month. These changes were minor, though. The provincial unemployment remained second lowest in Canada, dropping marginally to 5.5% in November. At 5.1%, Manitoba had the lowest unemployment rate in the country last month.
Accommodation and food services were Saskatchewan's fastest growing sectors in November. Employment gains were also seen in professional, scientific and technical services, in trade and in health care and social assistance. Employment did not fare so well in other industries, with the biggest losses coming in agriculture, manufacturing and finance, insurance, real estate and leasing.
| Seasonally Adjusted Data |
Nov. 2010 |
Oct. 2010 |
Nov. 2009 |
Monthly Variation |
Yearly Variation |
||
|---|---|---|---|---|---|---|---|
| Num. | % | Num. | % | ||||
| Population 15+ ('000) | 795.5 | 794.8 | 783.8 | 0.7 | 0.1% | 11.7 | 1.5% |
| Labour Force ('000) | 557.5 | 557.7 | 549.0 | -0.2 | 0.0% | 8.5 | 1.5% |
| Employment ('000) | 527.0 | 525.8 | 520.9 | 1.2 | 0.2% | 6.1 | 1.2% |
| Full-Time ('000) | 432.9 | 435.6 | 426.8 | -2.7 | -0.6% | 6.1 | 1.4% |
| Part-Time ('000) | 94.1 | 90.1 | 94.1 | 4.0 | 4.4% | 0.0 | 0.0% |
| Unemployment | 30.5 | 32.0 | 28.1 | -1.5 | -4.7% | 2.4 | 8.5% |
| Participation Rate (%) | 70.1 | 70.2 | 70.0 | -0.1 | - | 0.1 | - |
| Unemployment Rate (%) | 5.5 | 5.7 | 5.1 | -0.2 | - | 0.4 | - |
| Employment Rate (%) | 66.2 | 66.2 | 66.5 | 0.0 | - | -0.3 | - |
Note: Totals may not add due to rounding.
Source: Statistics Canada's Labour Force Survey - HRSDC Table-087
Events and Trends in Saskatchewan
Employment pilot project: The Saskatchewan Region of Indian and Northern Affairs Canada (INAC) introduced a pilot project aimed at assisting the 18,000 on-reserve First Nations people currently receiving social assistance to enter the job market. Active Measures will offer education, job training, child care, transportation, and other services to assist individuals in preparing and searching for work. Initial agreements are expected to be negotiated early in 2011.
Key Source: The Leader-Post, December 4, 2010
Number of doctors in Saskatchewan below national average: Saskatchewan, with 164 doctors per 100,000 population, remains below the national average of 201 doctors per 100,000 population, according to the annual supply report released by the Canadian Institute of Health Information. The province continues to struggle with recruiting and retaining doctors. In 2009, the percentage of doctors in Saskatchewan who were international medical graduates was 46.2%, compared to 23.6% in Canada. Only 23 doctors migrated to Saskatchewan last year, while 46 moved to other provinces. The report noted that the overall number of doctors in the province increased to 1,703 in 2009 from 1,660 in 2008. Saskatchewan doctors have been frustrated by the lack of a contract with the Province since April 2009.
Key Sources: Canadian Institute of Health Information, Supply, Distribution and Migration of Canadian Physicians, 2009, December 2, 2010
and Saskatchewan News Network, December 3, 2010
Mid-year budget indicates surplus: The Province of Saskatchewan plans to transfer half of its forecasted $137-million surplus this year to the Growth and Financial Security Fund. This will leave the Province with a $68.5-million surplus in the 2010-11 budget. Saskatchewan's upgraded financial situation is due in large part to stronger than anticipated returns from corporate income tax. Revenue is expected to conclude the year at $10.68 billion, an increase of $726.2 million from the original budget. Expenses are expected to be $415 million above the budgeted $10.54 billion, due to funding of the Children's Hospital in Saskatoon, as well as unexpected costs from summer flooding relief.
Key Source: Government of Saskatchewan News Release November 25, 2010
Health regions saving: Both overtime and sick time decreased during the first six months of Saskatchewan Health Regions' 2010-2011 fiscal season, compared to last year. The 20% reduction in overtime and 4.4% decrease in sick time resulted in savings of $8 million.
Key Source: Government of Saskatchewan News Release November 24, 2010
Improving outlook: Although agriculture growth in the province was stunted in 2010 due to record flooding, a turnaround is anticipated in the next year, according to The Conference Board of Canada. Expansions in energy and potash mining will help Saskatchewan's economy and will support the construction industry as well. There are other positive signs. Manufacturing is forecast to rise consistently in 2011, and continued population growth from inter-provincial and international migration will boost the service sector and housing industry. Further, the Conference Board of Canada forecasts real GDP growth will be minimal in 2010 (0.5%) but will be significant in 2011(4.4%) and in 2012 (4.1%).
Key Source: The Conference Board of Canada Provincial Outlook, November 23, 2010
Memorandum between Saskatchewan and Ukraine: In hopes of increasing economic prospects for both parties, Saskatchewan has signed a Memorandum of Intent with Zhytomyr Oblast, Ukraine. The union creates a friendly foundation for collaboration in mutually beneficial sectors, especially in agriculture.
Key Source: Government of Saskatchewan News Release November 22, 2010
Potash bid removed: BHP Billiton Ltd. has removed its $38.6-billion-US bid to take over PotashCorp of Saskatchewan Inc., since clearance under the Investment Canada Act could not be obtained. PotashCorp produces approximately 20% of the world's potash, a key ingredient in fertilizer. BHP Billiton has indicated that the cancelled bid will not affect other investments in the province, such as the new Jansen Lake potash mine.
Key Source: BHP Billiton News Release, November 15, 2010
Possible credit union merger: The boards of directors for Innovation, Conexus, and Synergy Credit Unions have agreed that a merger would benefit their organizations. The business case will go to a member vote in January 2011. If approved, the merger would take effect January 2012, consolidating $6 billion in assets and serving 194,000 members in the province.
Key Source: The Kindersley Clarion, November 10, 2010
Key Events and Trends in Saskatchewan Sub-Regions
Regina and Southern Saskatchewan
Agreement on industrial corridor: Eight communities signed an agreement to develop the area between Regina and Moose Jaw. The communities raised $100,000, matched equally by the federal and provincial governments through the Planning for Growth initiative. The project will include a long-term common strategy for development and sustainability of the corridor that will encourage business investment.
Key Source: The Leader-Post, December 1, 2010
Regina - Agribition 2010: The 40th Western Canadian Agribition was held in Regina from November 22 to 27. The world-class tradeshow, competition, and auction had sales near $2 million, but a slightly lower than average attendance, under 140,000. International guests topped 780, representing 82 nations, including 24 American States. Agribition is a major contributor to Regina and Saskatchewan's economy, providing $16 million to the province's GDP, not only in agriculture, but in service and hospitality sectors as well.
Key Source: The Leader-Post, November 29, 2010
Regina - Two affordable housing projects underway: The Canada-Saskatchewan Affordable Housing Program Agreement has provided funding to two affordable housing projects in Regina. A three-story, 40-suite building for cognitively challenged individuals received $3.8 million from the federal and provincial governments. Other funding partners include the City of Regina and Ehrlo Community Services Inc. Regina Lutheran Care Society received funding of $14.5 million for the renovation of Milton Heights, a 135-unit apartment that houses seniors and vulnerable adults. Both projects are underway and expected to be completed in late 2011.
Key Source: Government of Saskatchewan News Release November 8 and 18, 2010
Moose Jaw - Pork plant receives federal money: Thunder Creek Pork received $1.78 million from the federal government's AgriFlexibility Fund to purchase meat-processing equipment that will help increase productivity. The renovated plant, slated to open in January 2011, will process approximately 5,000 hogs per week. New owners Donald’s Fine Foods/Britco Pork anticipates the facility will create 200 jobs in Moose Jaw.
Key Source: Moose Jaw Times-Herald, December 4, 2010
Kindersley - multi-use facility: Clark Builders of Edmonton will begin construction of the arena and lobby of a multi-use facility in Kindersley. Construction of the 400-seat structure is set to begin in February 2011 with a completion date of December 2011. Phase one will cost $12.2 million of the $35 million total.
Key Source: The Kindersley Clarion, December 1, 2010
Potash One sold: As part of the plan to develop a potash solution-mine near Regina, Potash One Inc. has agreed to a friendly takeover of $434 million by K+S of Germany. Financing was required in order to continue development. The new mine is expected to produce 2.86 million tonnes annually, bringing $2.5-billion US in investment and 300 jobs to the province.
Key Source: The Leader-Post, November 23, 2010
Swift Current - Water-treatment plant: The City of Swift Current has awarded tender of $9.49 million for a water-treatment plant upgrade that will increase function from 28 to 30 million litres of water per day. Stuart Olson Dominion Construction Ltd will begin the yearlong expansion in 2011.
Key Source: The Southwest Booster, November 18, 2010
Moosomin - 24-unit apartment complex: Bridge Road Developments, a Manitoba-based company, plans to move forward on the construction of a 24-unit, $5-million apartment complex in Moosomin. The initial phase could expand to 30 units if enough tenants express interest before the start of construction in March 2011. The current plan also includes the construction of two additional 24-unit apartment complexes over the next three years. Bridge Road also has a complex under construction in Redvers.
Key Source: The World Spectator, November 29, 2010
Moosomin - construction of third new hotel planned: Just months after the Canalta Hotel opened, two more companies plan to construct hotels in Moosomin. A Swift Current developer plans to build a rustic hotel next to the Canalta hotel, and a Prince Albert developer plans to build an 80-room three-storey Motel 6 on 19 lots east of Alberni Street and south of Lake Avenue. Construction on the Motel 6 is scheduled to start in spring 2011. The motel would employ 20 people.
Key Source: The World-Spectator, November 15, 2010
Muskowekwan First Nation - Potash mine development agreement: The Muskowekwan First Nation signed a formal joint-venture agreement with Vancouver-based Encanto Potash Corp. for the development and operation of a potash mine on the reserve, located near Punnichy. According to the deal, Muskowekwan will receive 3% of the profits, to help the band meet its education, health, and housing needs. The agreement now goes to band membership for approval, with a vote expected in January 2011. To date, Encanto has spent almost $11 million on the exploration work, and it is prepared to invest in the next stage. The proposed project could create 300 mining jobs.
Key Source: Leader-Post November 10, 2010
Saskatoon and Northern Saskatchewan
Government funds for research and development: The Canada-Saskatchewan Western Economic Partnership Agreement will provide $6.5 million in funding for two projects. The first will see more than $2 million go toward testing new oil sands technology that is being developed at the University of Saskatchewan's Toxicology Centre. The second $4.5 million will support a three-year research initiative led by Genome Prairie, a leading not-for-profit organization for support and management of large-scale genomics and related bioscience research projects in Manitoba and Saskatchewan. The research will develop new varieties of camelina (a variety of flaxseed) and Brassica carinate (a variety of mustard), two crops that have potential for industrial applications.
Key Source: Government of Saskatchewan, December 3, 2010
Saskatoon - Saskatchewan Research Council expands operations: The Saskatchewan Research Council, along with the federal and provincial governments, will spend $1.9 million to purchase two pieces of equipment for its Advanced Microanalysis Centre. The equipment will address a growing demand from mining companies to test and analyze a wider range of mineral samples. According to Lynne Yelich, Minister of State for Western Economic Diversification, further exploration and mine development will create jobs and other economic benefits.
Key Source: Saskatoon StarPhoenix November 27, 2010
Saskatoon - Cameco signs agreement with Chinese nuclear power company: Cameco signed an agreement to supply 29 million pounds of uranium concentrate to China Guangdong Nuclear Power Holding Co. Ltd. (CGNPC) through 2025. CGNPC is a state-owned enterprise with 14 nuclear power units under construction and with preliminary plans for another nine units. Cameco's plan to double uranium production by 2018 will boost employment levels at their northern mine operations.
Key Source: Cameco, November 23, 2010
Saskatoon - Construction of school underway in core neighbourhood: Construction is underway on a new pre-kindergarten to grade eight school in Saskatoon's Pleasant Hill neighbourhood. Once complete, the $15.5-million facility will include 50 child care spaces and a wellness centre with a pediatric clinic. It is expected to open to students in March 2012. This project will be the focal point for a larger revitalization of the core neighbourhood that includes affordable housing.
Key Sources: Government of Saskatchewan News Release November 23, 2010 and
StarPhoenix November 24, 2010
Saskatoon - Métis educational facility extends programs: The Gabriel Dumont Institute and Human Resources and Skills Development Canada recently signed a $47.5-million agreement to extend its training and employment programs to Métis students for another five years.
Key Source: StarPhoenix, November 20, 2010
Saskatoon - National conference on Aboriginal careers and employment: In March 2011 the Radisson Hotel in Saskatoon will host a national conference on Aboriginal careers and employment. Several hundred human resource experts and executives are expected to attend the three-day event. Presenters will discuss ways for businesses to "take it to the next level" in the training and hiring of Aboriginal people.
Key Source: StarPhoenix November 12, 1010
Humboldt District - Health complex opening delayed: The official opening of the new $40-million Humboldt and District Health Complex has been postponed to March 2011. The existing hospital will be demolished once the new facility is complete.
Key Source: Humboldt Journal, December 1, 2010
Melfort - Canalta Hotel: Construction is underway on the Canalta Hotel in Melfort. The new four-storey, 78-room building will include a waterslide and fitness centre. The hotel, located at the new Stonegate Development on Highway 6, is slated to open in mid-summer of 2011.
Key Source: Melfort Journal, December 1, 2010
Melfort - Provincial government sells Thomson Meats: The Agricultural Credit Corporation of Saskatchewan sold Thomson Meats Ltd. for about $247,000. The company, located in Melfort was purchased by a corporation led by the current Chief Executive Officer of Thomson Meats Ltd. The purchaser will assume all debt and liabilities of the company. Thomson Meats employs 20 to 40 people in Melfort. The buyer plans to continue operations at Thomson Meats.
Key Source: Government of Saskatchewan, December 2, 2010
BHP Billiton Jansen potash mine project: Work continues on the Jansen potash mine project located between Lanigan and Humboldt. Gravel hauling is complete, an electrical substation is in place, and a 200-person camp is set up in Lanigan. Between 100 and 150 workers will be onsite from now until the end of March 2011. The company expects to make a production decision on whether to proceed with the $12-billion Jansen mine development project in late 2011 or early 2012. If approved, about 400 million tonnes of recoverable potash could be mined over the next 50 years. Recently, BHP Billiton purchased an exploration permit from 101109718 Saskatchewan Ltd., a subsidiary of Acron, a fertilizer maker based in Russia. The permit covers 83,880 acres that borders BHP's Boulder project located in central Saskatchewan.
Key Sources: Saskatoon StarPhoenix, November 30, 2010 and
Toronto Star, December 1, 2010
Bells Point - Long Term Care Centre: The Lac La Ronge Indian Band held a community gathering for the opening of the new Catherine Charles Long Term Care Centre in Bells Point. The $2.1-million facility has 10 long-term care beds, a large visiting area, and a fireplace. The home will start accepting residents in January 2011.
Key Source: mbcradio.com, December 2, 2010
Lanigan - New medical clinic for area: Plans are underway to build a new 4,500-square-foot medical clinic to serve the residents of Lanigan and the surrounding areas. Construction will start in the spring of 2011 and be complete by the fall of 2011. The estimated cost of the clinic is about $1.8 million. The plan is to have the clinic staffed by three doctors, a dentist, an optometrist, and two licensed nurse practitioners.
Key Source: Saskatoon StarPhoenix, November 25, 2010
UEX announces $9.51 million for uranium exploration and development: UEX Corporation, a Canadian uranium exploration and development company announced a $9.51 million budget for 2011 for its Western Athabasca Projects in northern Saskatchewan. About $7.9 million will be spent on Shea Creek, $735,000 on Douglas River, and $713,000 on Mirror River projects. Exploration at Shea Creek will start in mid February. These projects are jointly owned by UEX (49%) and AREVA Resources Canada Inc. (51%).
Key Source: UEX Corporation, November 19, 2010
$1 million for nuclear-waste storage-information sessions: The Nuclear Waste Management Organization (NWMO) will provide $1 million to the Federation of Saskatchewan Indian Nations, to educate people about nuclear waste storage. Currently, nuclear fuel waste is stored at seven locations in Canada. NWMO is looking to build one location where all spent fuel can be transported and stored. At the end of three years, NWMO is hoping to find an informed and willing community to host the $24-billion nuclear waste storage facility. The English River First Nation and the Métis community of Pinehouse have shown interest in the project, along with two other communities in Ontario.
Key Sources: Prince Albert Daily Herald, November 23, 2010 and
nbbusinessjournal.com, November 19, 2010
Shellbrook - Shellbrook Chevrolet Buick GMC: A grand opening was held at the new Shellbrook Chevrolet Buick GMC dealership in Shellbrook. The new 27,000-square-foot facility has a four-car showroom, 11 service bays, 10 auto body bays, two paint booths, and a drive-through service area. Employment levels increased from 12 to 30 employees.
Key Source: Shellbrook Chronicle, November 19, 2010
Nipawin - work continues on new potable water reservoir: Construction work continues on the new potable water reservoir in Nipawin. The project is on budget but slightly behind schedule, due to adverse weather. To date, about $1 million has been spent on the project.
Key Source: Nipawin Journal, November 10, 2010
Hudson Bay - Weyerhaeuser begins production at OSB mill: Weyerhaeuser began production at its Oriented Strandboard Mill (OSB) in Hudson Bay on October 18. Weyerhaeuser will run two shifts for the remainder of 2010 and 2011, and plans to recall the majority of its workforce as markets improve. In July 2010, Weyerhaeuser recalled 85 of the 140 workers laid off when the mill closed in July 2008. These workers have been busy getting the mill ready for production.
Key Source: Hudson Bay Post Review, November 4, 2010