April 12, 1996
(Executive Council)

Finance minister says province looking into reported employment declines

Finance Minister and President of Treasury Board Paul Dicks commented today on figures recently released by Statistics Canada that showed a large decline in the number of persons employed in the province compared to a year ago. Statistics Canada showed a 7.9 per cent decrease in those employed from March 1995 to March 1996.

"The Statistics Canada figures are difficult to accept," said Mr. Dicks. "The outlook for the economy this year is not good, but no one including the federal government had predicted declines like those reported by Statistics Canada."

The Statistics Canada figures indicate there are 15,000 fewer persons employed in March 1996 than there were in March 1995. Most of this decline is in the community, business and personal services industry.

"Statistics Canada generates its figure from sample surveys. They don't do an actual count of jobs gained and lost. Surveys - which are not actual counts - can yield inaccurate numbers," said Mr. Dicks. "The provincial government is comparing Statistics Canada estimates with actual figures that we have for job declines. Our figures for job losses are considerably lower than Statistics Canada's estimates.

"For example, Statistics Canada estimates a decline of about 2,900 jobs in health and social services in the first three months of this year. The province's actual figure for job losses in this sector is less than 400.

"Another example is educational services. Statistics Canada estimates a decline of 2,300 persons employed, while the province's count of job loses in this sector is 700. This is reinforced by the unemployment insurance data which shows an increase of 630 people in this sector during the first three months of this year.

"Overall, the evidence suggests a decline in the number of jobs, but one that is less than the Statistics Canada survey shows.

"Provincial officials are analyzing the Statistics Canada estimates, and will be meeting with federal officials to discuss these matters."

Contact: Karen McCarthy, (709) 729-0110.