June 5, 1998
(Executive Council)

The following statement was issued today by Premier Brian Tobin. It was also read in the House of Assembly:

May Labour Force survey

I am pleased to rise before the House this morning to report that for the 10th consecutive month the number of people employed in Newfoundland and Labrador has increased.

The labour force survey for the month of May was released this morning, and it reports that employment in Newfoundland and Labrador rose by 6.3 per cent or 11,500 jobs last month. That 11,500 increase comes on the heels of a 5.3 per cent, 9,300 job gain in April, bringing the average gain over the first five months of the year to 3.7 per cent. The unemployment rate declined by 3.9 percentage points last month, and by an average of 2.3 percentage points in the first five months.

Many national forecasting agencies, such as the Conference Board of Canada, are predicting that Newfoundland and Labrador will lead the country in economic growth this year. The positive trends in the labour markets support those forecasts. 1998 is shaping up to be the best year the province has experienced since the late 1980s.

In the eight months from October 1997 to May 1998, employment gains have averaged about 3.8 per cent, or about 6,900 jobs a month. This compares with average gain of about 2.8 percent nationally.

Since October 1997 the average unemployment rate has declined by 2.3 percentage points compared with a decline of only 1.1 percentage point nationally. The number of unemployed people has dropped by nearly 11 per cent, or about 4,900. Although we may still have a ways to go, we are certainly making significant progress.

The employment gains continued to be broadly based in May, with job increases recorded for a number of industries including: the fishery, manufacturing, transportation and services. Of particular importance to workers in rural parts of the province was the 2,800 gain in the number of fish processing jobs, following an increase of 2,600 in April and 1,300 in March. A successful caplin fishery, together with higher catches of shrimp, crab and cod, would be instrumental in ensuring that these job gains in the fish processing sector continue.

Employment gains have been accompanied by sharp declines in the province's social assistance caseload. The number of employable cases declined by 19 per cent in the first four months of the year following a decline of nearly 11 per cent in 1997. The total caseload declined by nearly 10 per cent in the first four months, and by about five per cent in 1997.

Not surprisingly, consumer confidence is also continuing to increase. This reflects employment and income growth, falling unemployment, and the beneficial effects of the lower sales tax rate that accompanied the implementation of HST last year. The value of retail sales was up by 4.6 per cent in the first three months of the year, following a gain of 5.7 per cent last year.

These are not the only positive indicators. The value of manufacturing shipments rose by 14.3 per cent in the first three months, while the volume of iron ore production was up by 2.9 per cent in the first two months.

Of course, our continued growth will be affected by the post-TAGS program, and we look forward to seeing a proposal that adequately addresses the needs of the people of Newfoundland and Labrador.

1998 06 05                         10:30 a.m.