Province ends year in the lead

Newfoundland and Labrador has good reason to celebrate the new year. The province led the country in employment growth as 1999 drew to a close, carrying its economic momentum into 2000.

Premier Brian Tobin said today that Newfoundland and Labrador recorded the strongest economic and employment growth of any province in 1999, and the employment growth was the strongest since 1988. "In fact, as of December, Newfoundland and Labrador�s actual unemployment rate is no longer the highest in the country," noted Premier Tobin.

Average monthly employment in 1999 was an historical record of 208,300, an increase of 5.3 per cent from 1998, according to Statistics Canada Labour Force Survey released today. Furthermore, unlike the first half of the 1990s when most employment growth in this province and Canada was part time, employment gains were in full time jobs for the third consecutive year.

Real GDP growth is estimated at 5.0 per cent for 1999, building on the 6.2 per cent growth recorded in 1998. "Economic growth was broadly-based and was led by offshore oil, the fishery, major project construction, tourism and consumer spending," said Premier Tobin.

Production at Hibernia increased from 23.8 million barrels in 1998 to about 36 million barrels in 1999, and the production value of fish products increased to a record $950 million. Major construction projects included the Terra Nova development, the St. John�s Civic Centre, the university student centre, and hospital and road construction.

A record number of tourists (about 400,000) visited the province in 1999 and spent about $250 million. Consumer spending has increased by about 7 per cent for the first three quarters on a year-over-year basis.

"We expect strong economic growth will continue, boosted by further increases in oil exploration and production and increased shipments from the fishing, newsprint and mining sectors, and higher levels of tourism spurred by Vikings! 1000 Years," said the Premier. "Higher consumer spending is also anticipated, aided by our reduction in personal income tax rates."

The employment growth of 5.3 per cent fuelled the decline in the annual unemployment rate, which fell to 16.7 per cent, the lowest since 1989. "I am delighted with the record level of employment in 1999," said Premier Tobin. "Strong economic growth is generating new job opportunities for Newfoundlanders and Labradorians. This is resulting in increased in-migration, a decline in out-migration, and reduced dependence on social assistance."

Full time employment accounted for 84.9 per cent of employment in 1999, an increase of 6.5 per cent from 1998 and 10.2 per cent from 1997. Part time employment has remained stable since 1997.

December employment of 205,400 was also a record. Premier Brian Tobin also noted that, for the third time in 1999, the monthly actual unemployment rate was not the highest among the provinces. In that month, Prince Edward Island�s actual unemployment rate was 14.1 per cent as compared to 13.6 per cent for this province.

Media contact: Heidi Bonnell, Communications, (709) 729-3960.

2000 01 07                                                12:40 p.m.