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September 10, 1999
(Human Resources and Employment)


Newfoundland and Labrador remains number one in employment growth

August labour force numbers released today by Statistics Canada show that Newfoundland and Labrador is still on top when it comes to employment growth. The 5.9 per cent increase in employment from August 1998 is by far the strongest performance of any province.

Gains in employment are attributed to increased economic activity. "Newfoundland and Labrador is expected to have the fastest growing economy in Canada this year, for the second year running," said Julie Bettney, Human Resources and Employment Minister. Real GDP growth in 1999 is expected to be five per cent following growth of 4.4 per cent last year.

This growth is bolstered by an expanding oil industry which is experiencing production increases at Hibernia, the development of the Terra Nova oil field, and the highest level of offshore exploration in a decade. Tourism and the fishery are other industries fueling the economy.

"Not only is Newfoundland and Labrador leading the country in GDP and employment growth, but it is also leading in retail trade and investment," said Minister Bettney. Statistics Canada's survey of investment intentions shows a 29.2 per cent gain in 1999 or an increase of nearly $800 million over last year. On retail trade, there was an increase of 6.5 per cent in the January to June period compared to a year earlier. "Growth in employment and wages is adding to consumers' buying power. We are seeing growth in a wide range of retail categories."

The decrease in Newfoundland and Labrador's unemployment rate was also impressive, falling 2.3 percentage points to 15.8 per cent, compared to a year earlier. On a seasonally adjusted basis, the unemployment rate declined by 0.1 point from July to 16.5 per cent. This is the lowest unemployment rate for August in a decade.

Seasonally adjusted employment declined by 6,500 from July to August. "Although seasonally adjusted employment decreased, the underlying trend in employment is a rising one as evident in the actual year-over-year job gain of 12,400 from last year," explained Minister Bettney.

There are signs that employment growth will continue. Statistics Canada's Help Wanted Index for Newfoundland and Labrador rose 20.4 per cent in August from a year earlier. This index measures the ad space for job openings in local newspapers. A rise in the index has preceded employment gains in the past.

"The numbers show that our economy is steadily improving," said Minister Bettney. "More Newfoundlanders and Labradorians are taking part in the labour market and more employers are opening their doors. There is definitely a positive outlook for the future of this province."

Media contact: Marcia Porter, Communications, (709) 729-4062.

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BACKGROUNDER
Latest Indicators of Economic Performance in 1999

INDUSTRIAL PRODUCTION

  • The value of manufacturing shipments increased 6.0 per cent to $888 million in the first half of 1999 from $838 million in the same period of 1998.

  • Oil production increased 124.9 per cent to 15.1 million barrels.

  • Offshore exploration activity is at its highest level in a decade.

  • Newsprint shipments grew 4.4 per cent in the first half to 372,996 tonnes.

  • Lumber production in the 12 months ending March 31 increased by 19.3 per cent to 110 million f.b.m. (foot board measure).

  • Total fish landings declined in volume by 8.4 per cent in the January to August period due to lower capelin catches. However, landings of shellfish and groundfish (which are comprised of species having a higher market value than capelin) increased by 1.3 per cent and 24.9 per cent respectively. The value of landings in 1999 is expected to reach an all-time high.

  • Iron ore production declined 23.8 per cent in volume to 6.9 million tonnes in the January to May period reflecting temporary weakness in iron ore markets.

INCOMES

  • Average weekly earnings of workers increased by 3.6 per cent in the first half to $544.

  • Total wages and salaries rose 4.5 per cent to $2.4 billion in the first half.

CONSUMER SPENDING

  • The value of retail trade increased by 6.5 per cent in the first half to $1,923 million.

  • The number of new vehicle sales increased by 12.2 per cent in the first half of 1999 to 13,220.

HOUSING

  • Housing starts in the first half of the year increased by 5.3 per cent to 533 units.

TOURISM

  • The number of non-resident tourists arriving by automobile increased 14 per cent in the first seven months compared to the same period last year.

  • Inquiries at information centres increased by 12.3 per cent (June and July compared to a year earlier).

  • Provincial hotel occupancy rates increased from 54.7 per cent in the January to May period last year to 61.2 per cent in the same period this year.

INVESTMENT

  • Statistics Canada's survey of investment intentions shows a 29.2 per cent increase (nearly $800 million) in 1999 capital investment plans compared to 1998. The oil industry (Terra Nova development and offshore exploration) is the major impetus behind the increase.

  • Total planned capital investment in 1999 is $3,534 million comprised of $2,756 million in construction and $779 million in machinery and equipment.

SOCIAL ASSISTANCE

  • Social assistance caseload declined approximately four per cent, to 30,735 cases, from August 1998.

1999 09 10 4:30 p.m.


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