Province leads the country in employment growth for 2001

Newfoundland and Labrador recorded the strongest employment growth of any province in 2001 and the province's employment numbers were three times the national growth rate. 

According to Labour Force Survey data released today by Statistics Canada, employment in Newfoundland and Labrador grew by 3.3 per cent in 2001 to a record high 211,300. The unemployment rate dropped to 16.1 per cent, the lowest rate since 1989, and the fifth consecutive year that the unemployment rate has fallen. The unemployment rate would have declined more had it not been for strong growth in the labour force. The labour force grew by 2.6 per cent in 2001 to a record 252,000.

"We were aware that 2001 was going to turn out to be a successful year for the province," said Gerald Smith, Minister of Human Resources and Employment. "This latest news that the province led the country in employment growth for 2001 is a great indication of just how well the province's labour market is doing." 

Employment growth was broadly based across the goods and services sector. The services sector grew by 3.6 per cent, led by growth in wholesale and retail trade, transportation and warehousing, management services, and health care and educational services. The goods sector expanded by 2.1 per cent, led by the manufacturing sector.

"These latest numbers mark the second time in three years that Newfoundland and Labrador led all provinces in terms of employment growth, and this growth is complemented by other positive economic indicators," said Joan Marie Aylward, Minister of Finance. "Personal income should grow by about 4.0 per cent for the third consecutive year, retail sales growth could exceed 7.0 per cent for the fourth time in five years, housing starts are at their highest since 1996, and net out-migration is at its lowest since population losses started in 1994."

Other annual labour market indicators also hit record highs in 2001. The participation rate (the per cent of working age adults in the labor force) averaged 57.4 per cent, and the employment rate (the per cent of the working age population that are employed) averaged 48.1 per cent.

For the month of December, year-over-year employment grew by 4.6 per cent to 208,700, and the unemployment rate dropped to 16.0 per cent compared to the same period last year. On a seasonally adjusted basis, employment grew by 1.7 per cent compared to November 2001, and the labour force grew by 2.6 percent. This resulted in an increase in the seasonally adjusted unemployment rate to 17.0 per cent compared to November 2001.

"Through such initiatives as the Government of Newfoundland and Labrador's Strategic Social Plan, the Jobs and Growth agenda, as well as the important partnerships we have developed with our key stakeholders, we are seeing positive economic and employment outcomes which should continue in 2002," said Minister Smith.

Media contact: Paul Power, Communications, (709) 729-4062.

2002 01 11                          3:45 p.m.