May 8, 1998
(Executive Council)

Provincial Employment Growth Strengthens

Premier Brian Tobin said he is pleased with the latest indications of economic improvement for the province. Statistics Canada's Labour Force Survey for April, which was released this morning, reported that the number of people employed in Newfoundland and Labrador increased by 5.3 per cent over the past 12 months.

"I am happy to see such a strong report on our economic performance with the addition of 9,300 new jobs to our economy," said Premier Tobin. "April was the ninth consecutive month of year-over-year employment gains and it was the strongest gain we have yet to see in the 1990s. Alberta was the only other province to report stronger job growth than the 5.3 per cent increase we recorded. The pick up in hiring can be attributed to increased activity in the province's oil industry, as well as an increase in overall business confidence."

"The increase in activity related to the province's oil industry as well as improvements in business confidence are important factors behind the pickup in hiring," added the premier.

Job gains this year were realized across a range of industries: manufacturing, including: fish processing; transportation; communications; other utilities; as well as community, business, and personal services. In the year-to-date period (January to April), employment growth was 3.1 per cent or 5,400 jobs.

"The increased employment translates to a two point decline in the average unemployment rate in the first four months of this year," said the premier.

Other available economic indicators for the year-to-date are also positive. The volume of iron ore production in the January-February period grew 2.9 per cent over last year. The value of manufacturing shipments increased by 22 per cent. Of particular note in the manufacturing sector is the employment gain realized at the newly privatized Marystown Shipyard. Under the ownership of Friede Goldman International, employment increased from under 500 in April 1997 to just over 1,000 in April 1998.

"We are also seeing our burgeoning oil industry taking shape," said the premier. "At the Hibernia field, where no oil was flowing a year ago, we produced $64 million of crude oil in January and February of this year."

Consumers are also spending more and contributing to the economy as the value of retail sales in the January-February period posted a 5.4 per cent gain over the past year. The lowering of the province's sales tax rate through the implementation of the HST is combining with the gain in employment to help bring about higher consumer spending.

"This is positive news for the provincial economy," said the premier. "However, it must be taken with a note of caution - 20,000 people will soon be coming off the TAGS program and without an adequate follow-up to TAGS, the economic recovery we are experiencing will undoubtedly be affected. We are confident that the federal government will shortly announce a program which will relieve the thousands of people waiting to hear what their futures will hold. We look forward to hearing the details."

Labour Market Performance
Newfoundland and Labrador

Employment
Newfoundland and Labrador

Unemployment Rate
Newfoundland and Labrador

Contact: Heidi Bonnell, (709) 729-3564.

1998 05 08                          2:00 p.m.