March 12, 1999
(Human Resources and Employment)

Strong employment growth in February

Human Resources and Employment Minister Julie Bettney said today that employment growth in February was very strong. Compared to a year earlier, employment increased by 8.3 per cent or 15,000 jobs bringing the number employed to its highest level ever for that month. Statistics Canada released its Labour Force Survey for February this morning.

"We have experienced a year-over-year gain in employment in 22 out of the last 26 months," noted the minister. "There were 15,000 more jobs in February than there were a year earlier. The result was a decline of 2.8 percentage points in the actual unemployment rate to 16 per cent. Not since 1981 have we had a February unemployment rate that was this low."

"While I am pleased with the increase, I would want to see these numbers sustained over a longer period of time," said Minister Bettney. "From our experience these numbers can fluctuate month per month. If this positive trend continues throughout the spring however, it will mark a significant improvement in our employment picture."

The 8.3 per cent employment gain was broadly based across the goods and service producing industries. The wholesale and retail trade, construction, and manufacturing industries all recorded gains in employment. This year we are benefitting from an active oil and gas industry with Terra Nova development well under way. Also, the Canada Winter Games provided a significant boost to tourism last month which helped the West Coast-Labrador region of the province experience the strongest job growth.

The minister said that both women and men were participating in the job gains at about the same rate. She also pointed out that full-time jobs grew by 11.5 per cent while part-time jobs actually declined by 5.8 per cent. "It is satisfying to see such an increase in full-time jobs and it may be that part-time jobs are being replaced by full-time employment." Last year full-time employment accounted for almost 84 per cent of total employment compared to a figure for Canada that was closer to 81 per cent.

On a seasonally adjusted basis, Statistics Canada reported that the unemployment rate declined by 2.1 percentage points from 17.6 per cent in January to 15.5 per cent in February. The rate was driven lower by a 7,100 increase in employment between January and February.

"The job growth last month was certainly impressive," said Minister Bettney, "and while it may be unreasonable to look for growth like this every month, it arguably gets the province off to a very good start for job growth in 1999."

She added that the social assistance caseload continues to decline, and in February 1999 was at its lowest point since July 1993. The caseload decline is due in large part to increased employment opportunities for people, labour market partnerships with the federal government, and other employment initiatives and supports provided by Human Resources and Employment.

Media Contact: Karen Kelloway (709) 729-4062.

1999 03 12 2:45 p.m.