Province makes record gains in 2002

The year 2002 saw a record high number of 213,900 Newfoundlanders and Labradorians employed. This is the highest number ever recorded and an increase of 1.2 per cent over 2001.

In addition, the province experienced a record high labour force participation rate (58.6 per cent) and a record high labour force (2.2 per cent growth to 257,400). For the year as a whole, labour markets performed positively according to Statistics Canada which today released its Labour Force Survey data for December as well as its annual numbers for 2002.

Employment gains, coupled with strong consumer and business confidence, continued to draw people into the labour market. Because labour force growth exceeded employment growth, the annual unemployment rate increased in 2002 to 16.9 per cent from 16.1 per cent in 2001.

"We are pleased to see that labour markets are strengthening and that employment continued to grow in 2002," said Ralph Wiseman, Minister of Human Resources and Employment. "When taken in a longer term context since 1996, employment has grown by 14.4 per cent and the labour force has grown by 11.1 per cent."

In line with the increasing numbers of persons employed, social assistance caseloads also continued their downward trend in December with an active case count of 27,835, the lowest level seen in 2002.

Minister Wiseman added: "I believe this shows that government is on the right track with policy initiatives and leadership which increase economic opportunities for Newfoundlanders and Labradorians. We are closing the gap with the rest of the country in important indicators like the labour force participation rate. In terms of our past provincial performance, we have a great deal to be proud of. "

While the unemployment rate increased to 16.9 per cent in 2002, when taken in the context of strong labour force growth, this was not unexpected. In fact for similar reasons, the annual unemployment rate increased in six provinces in 2002, including Alberta and Ontario, yet employment also grew strongly in each of these provinces.

Almost 90 per cent of employment gains in 2002 (2,300 of 2,600) was in the services sector. Industries showing strong growth included professional, scientific and technical services, management services, and accommodation and food services. Job growth in the goods sector was led by manufacturing. 

On a monthly basis, year-over-year employment in December 2002 declined marginally by 600 jobs, or 0.3 per cent, to 208,100. The unemployment rate increased 1.9 percentage points and stood at 17.9 per cent.

"Labour markets were strong in the first three quarters of 2002," noted Minister Wiseman, "softening seen in the last quarter must be viewed in the context of exceptionally strong growth over the past two years. While employment in December 2002 declined on a year-over-year basis, the level of 208,100 was the second highest ever recorded for the month of December."

On a seasonally adjusted basis, employment was up 1.9 per cent or approximately 4,000 jobs for December while the unemployment rate remained unchanged at 18.5 per cent. Seasonally adjusted data looks at patterns of employment change within the current year from one month to the next, whereas the actual data compares employment this year to employment last year.

"Looking forward, we expect employment growth to continue in 2003," concluded Minister Wiseman. "Construction employment related to the White Rose and Voisey�s Bay developments, for example, is expected to more than double this year, and the services sector is expected to continue to expand. Employment growth in the services sector will be led by gains in industries such as professional, scientific and technical industries (e.g., customer contact centres) and retail trade (driven by income gains and consumer spending)."

Media contact: Simon N. Lono, Communications, (709) 729-4062.

2003 01 10                                       12:50 p.m.