Oil downturn slams petro-provinces' jobs #nlpoli

The four provinces heavily dependent on oil and gas resources took a major hit in jobs in 2016, according to seasonally-adjusted figures released on Friday by the Dominion's statistics bureau.

Alberta lost almost 35,000 full-time jobs. Nova Scotia lost more than 13,000 full-time jobs. Saskatchewan dropped 12,400 full-time jobs.  Newfoundland and Labrador lost 6,000 jobs between December 2015 and December 2016.

Growth in part-time employment in the same period offset the losses. Newfoundland and Labrador gained only 300 jobs, leaving it with a net employment loss of 5,700. Nova Scotia added almost 16,000 part-time jobs, though,  giving it a net gain in employment. Saskatchewan added 5,500 so the province ended the year with a net loss and in Alberta,  the economy added more than 16,000 part-time jobs.

None of this is a surprise to anyone who has been paying attention.  The downturn in the global oil industry that hammered Newfoundland and Labrador's government revenue has also been kicking the local labour force. In Newfoundland and Labrador, the government forecast last spring that the economy will shed jobs steadily over the next four years as the megaprojects at Long Harbour, Bull Arm, and Muskrat Falls wind down.  We got a reminder of that in August in some comments by education minister Dale Kirby.

Males fared worse than women in the Newfoundland and Labrador seasonally-adjusted full-time jobs figures.  Male full-time employment fell from 107,400 to 99,900 between December 2015 and December 2016.  By contrast,  1,400 women had full-time jobs in the province in the same period (from 87,400 to 88,800)  Part-time employment among males went from 9,500 to 13,000, while female part-time employment fell (28,600 to 25,400)

-srbp-

Selective Perception and Strange Bedfellows #nlpoli

Labour federation president Lana Payne tweeted last week about the latest labour force figures in the province.

And that’s true.  According to Statistics Canada, the province recorded the highest ever participation rate in June: 62%.

Two Conservative supporters retweeted Payne’s comments, apparently because they fit the Conservative mantra that everything is wonderful under the Tories.  Conservative policies produce results, which is why the Tories enjoy such huge support in the province.

Anyway, Tories and Dippers cheering the same thing isn’t really as odd a situation as it might seem.

Health Care Employment in NL #nlpoli

For those getting ready for this afternoon’s announcement by Eastern Health, here are some figures from Statistics Canada on employment in the health care sector in the province from October 2003 to December 2011.

More pork for the buck #nlpoli

The CBC’s John Gushue has a tidy analysis of Premier Kathy Dunderdale’s recent suggestion that government employees could work from home in the future as a way of cutting down on government real estate costs.

Gushue notes that people have been talking about “telework” for a couple of decades.  But where it was once an idea, today it is commonplace.

Unlike other employers that have looked to telework to improve productivity and employee lifestyle, Dunderdale’s interest in the concept is pretty simple and – for politicians in this province – typical and old-fashioned.  As Gushue notes:

She suggested reducing the cost of the public service ... not by dwindling its numbers, but by shrinking the footprint of its office space.

The reason the provincial government in Newfoundland and Labrador  costs more per capita than elsewhere in Canada is because provincial politicians use it for political purposes rather than just delivering government service to the people who pay the bills for the service.  It’s patronage.

Since taking office in 2003, the provincial Conservatives have done what the Liberals immediately before them have done.  Just as the Liberals transferred provincial paycheques to communities outside St. John’s, the Tories did the same thing in Grand Falls-Windsor and Stephenville when the local paper mill shut down. Overall, they swelled the provincial public service until it had become 25% of the provincial labour force.

Not surprisingly, the province’s public sector unions don’t like the idea of cuts to the number of people they represent.  In an interview last week, the head of the province’s largest public sector union claimed that the current size of the public service was the result of “rebuilding” after a period of cuts.  NAPE’s Carol Furlong said that “we really need to ensure that the people of this province have the services they need…”.

Of course, Furlong is full of crap.  The number of people represented by public sector unions has nothing to do with delivering the services the public needs.  There are plenty of ways to improve service delivery at a lower cost to taxpayers and with fewer members in Furlong’s union.

But, as you will see by looking at the Dunderdale and Furlong interviews, the politicians and the union leaders are in complete agreement on the question of the size of the provincial public service.  Neither of them wants to see it any smaller.

-srbp-

Public sector job growth outpaces private in NL

From labradore:

In the five years since the recent-historic low, in early 2006, of about 55,600 public-sector employees, the public-sector labour force has increased by about 11,500 or over 20%. As a share of total employment, the public sector has grown from 26% to 30%.

The twelve-month average ending in June 2011 was 67,100 — an increase of 4100, or 6.5%, from the same period twelve months earlier. This represented an increase of over half a percentage point in the public sector's overall share of the employed labour force.

Then there are the pretty charts showing the public sector employment, federal, provincial and municipal, in thousands of people:

and the private sector:

 

So when you have digested the full impact of that little bit of information, consider what the Muskrat Falls project is really all about: the megadebt will be worth it because it will “bring significant employment and income to the residents and businesses of Newfoundland and Labrador.”

 

- srbp -

Related:

• The Fragile Economy;  … and two steps back
• The Fragile Economy:  hard numbers

Labour force indicators raise questions about economic health and competitiveness

In a recent Fraser Institute study of labour markets in North America, Newfoundland and Labrador came in 49th out of 60 overall.  The study measured performance in five indicators:

• average total employment growth,
• average private-sector employment growth,
• average unemployment rate,
• average duration of unemployment, and,
• average gross domestic product per worker.

The study also assessed the level of public sector employment, minimum wage rate, level of unionization, labour relations laws and what the study authors termed “other areas of concern”.

Here’s how Newfoundland and Labrador placed in nine of the categories for which there was a readily measurable score that compared jurisdictions straightforwardly.   

Some of these figures, like the private sector as a percentage of the labour force, will be very familiar to Bond Papers readers. Now there is some context for them that shows they are cause for concern not just in and of themselves but because they raise serious questions about the overall health of the economy and about the province’s competitiveness.

It should almost go with saying that anyone arguing for an increase in public sector employment is out of touch.

1. Average total employment growth (2005-2009):  38th place with 0.1%.  That’s the weakest of the Canadian provinces.  The next weakest was Nova Scotia with 0.5%.
2. Average private-sector employment growth (2005-2009):  34th place with 0.0%.
3. Average unemployment rate (2005-2009):  60th place with 14.5%.
4. Average duration of unemployment (2005-2009):  17th place with 14.9% of the unemployed being out of work for 27 weeks or longer.
5. Average GDP per worker (2005-2009):  eighth place with $134,494.
6. Average provincial public sector employment as share of total employment (2005-2009):  59th, with 24.8%.  Nevada and Pennsylvania topped the ranking with 9.4% and 9.5% respectively.  Only Saskatchewan beat out Newfoundland and Labrador for the bottom spot with 24.9%
7. Average public sector employment (fed/prov/mun) as a share of total employment:  60th place with 28.2%
8. Average minimum wage as percent of GDP per worker (2004-2008):  10th place, 12%.
9. Unionized work force as a percentage of total work force (2005-2009):  59th, with 38%.  Quebec was the most unionised jurisdiction, at 39.9%.  North Carolina was the least with 4.3%.

Some of the other areas of concern are also interesting to note.  Newfoundland and Labrador showed the most days of work lost per 1,000 employees due to industrial disputes. (390 days, 2004-2008) That was three time the number of days of the second spot, British Columbia, with 127 days. Quebec – in third place – had a loss work days of 75 days.

And here are a couple of measures for just the past year:

1. Average unemployment rate, July 2009- June 2010:  60th place with an average unemployment rate of 15.4%. 
2. Average total employment growth, July 2009-June 2010:   tied for second place with 0.2% average growth.

- srbp -

The Fragile Economy: hard numbers

As labradore has been putting it in a series of posts, the provincial public service in the first half of 2010 comprises 53,780 people working directly for the provincial government, the university and public colleges, health care authorities and public school boards.

That works out to 26.2% of the working people of the province.  That’s double the comparable percentage for all 10 provinces.

And here’s the truly unsettling bit:

In the thirty years in which Statistics Canada has measured public sector employment, the percentage of employed people in Newfoundland and Labrador labour force who are employed in the provincial public sector has never been this high.

Those 53,780 comprise 21% of the entire labour force and, once again, that’s the highest this percentage has been in the three decades that Statistics Canada has been measuring public sector employment.

And they make up about 10% of the entire population of the province.

That’s a pretty sharp contrast to the talk in 2004.  As CBC reported, Danny Williams’ first budget forecast a cut of 4,000 public service positions.  By 2005, that planned cut disappeared. The planned cuts have evidently been replaced with a pretty hefty hiring plan.

Now if the private sector had grown at a similar or greater pace, there wouldn’t be so cause for concern.  As the job numbers show, though, the proportion of the labour force employed in the public sector has grown to an amazing level. in some regions of the province – like, say, Grand Falls-Windsor -  the provincial public service is the major employer.

- srbp -

Labour Force Comparison – a first look

last week’s release of the latest labour force numbers from Statistics Canada prompted your humble e-scribbler to go back and try a comparison of the overall provincial labour force in comparison to national averages.

Right off the bat, let everyone understand this is nothing more than a quick comparison based on readily available information. It should serve as the jumping off point for future discussion and if nothing else, it should help everyone get way beyond the rather simplistic comparisons of month-to-month numbers. Sometimes those things are meaningful but as the past couple of months have shown, sometimes, the statistics are just off.

The provincial numbers comes from a document included with the last provincial budget.  It’s called The Economy and gives an overview of the year just ended.  The national numbers come from the latest labour force statistics. Both sources use the same job classification system.  The listing below bundles them together so that the comparisons match up.

The figures are the percentage of the total number of jobs in each category.  For example, 1.7% of jobs in Canada are classified as being agricultural.  The corresponding percentage for Newfoundland and Labrador is 0.4%

To draw attention to aspects of the comparison, please note that categories where the provincial percentage lags behind the national significantly are marked with the digits underlined.  Where the provincial is significantly above the national average, the figures are in red. 

Statisticians may wonder what the definition of “significant” is.  Well, it comes down to the relative difference in the two numbers as they appear on the face of it. 

Category	National	Newfoundland and Labrador
Goods-producing	22%	21%
Agriculture	1.7	0.4
Natural Res	2.0	6.7
Utilities	<1	2.1
Construction	7.0	7.3
Manufacturing	10.2	5.5
Services-producing	78	79
Trade	15.7	16.2
Trans/warehouse	4.7	5.4
Fin, ins, RE,Bus	10.5	6.7
Prof./sci./tech.	7.4	3.6
Education	7.2	8.1
Health/soc asst	11.9	16.1
Accn	6.0	6.1
Public Admin	5.5	7.9
Other	4.3	4.8

Right off the bat, note that the relative breakdown into goods-producing and service- producing is virtually the same for both the provincial and national economies.

Let’s look at the goods sector. Overall, the provincial economy in this sector is very heavily reliant on resource extraction. The natural resources grouping (which includes fishing, trapping, mining and oil extraction) accounts for three times as large a percentage of jobs within the province as the same grouping.  Manufacturing, on the other hand, accounts for only half as much.  That 5.5% manufacturing for the province includes 2.2% for fish processing.

In the services sector, there are some equally interesting comparisons.  Finance, insurance, real estate and business services account for 6.7% of the jobs in this province while the same grouping accounts for 105% of jobs nationally.  The professional, scientific and technical services sector accounts for 3.6% of local jobs versus 7.4% nationally.

Take a look, though, at two service sectors which are publicly funded. About 16% of local jobs are in the health sector compared to 11.9% nationally;  that’s 33% above the national number.  Public administration is 43%, accounting for 7.9% of provincial jobs compared to 5.5% nationally.

Fully a quarter of the jobs in the province are public sector jobs compared to 17.4% of jobs across the country.  Given that some of the other categories likely also contain public sector employees, it wouldn’t take too much to estimate reasonably that the public sector accounts for about one third of all workers in the province.

Incidentally, just to put actual numbers on this, the health and social assistance sector accounted for 34,600 jobs in 2009 according to the provincial government figures.  That’s out of a total of 214,900 jobs.  It is the single largest category in the service sector, with retail trade coming in at 29,600 for second place  There were 17,300 in educational services and 16,900 people working in public administration.

The largest job category in goods-producing was construction at 15,700. The second largest was manufacturing with 11,900.  Of that manufacturing number, 4,700 were involved in fish processing.

- srbp -

Pre-publication post-script update:  This posts was written the night before it appeared. labradore has a simple set of numbers using more recent data for the size of the public sector in the province. His estimates are for the provincial public sector alone;  the figures above are for federal, provincial and municipal.

Still, according to labradore, the provincial government public sector accounted for 25% of the current labour force in the first half of 2010.

NL posts 8k job loss in June

The Newfoundland and Labrador economy shed 8,100 jobs in June, erasing gains posted in May. That’s according to figures release on Friday by Statistics Canada.

Overall, the Canadian economy gained 93,000 jobs in June.

Compared to June 2009, the province has gained 4,400 jobs.

According to Statistics Canada, the labour force dropped to 256,500 in June compared to 263,100 in May.

- srbp -