Labour Market Bulletin - Newfoundland and Labrador: June 2022

Overview

Employment increased for the fifth consecutive quarter, while the size of the labour force dropped slightly. The result was the lowest quarterly unemployment rate on record.

Note: Totals may not add due to rounding

Source: Statistics Canada Labour Force Survey - Table 14-10-0287

Historically, a fall in major project spending contributed to a sustained reduction in employment beginning in 2013. This raised the quarterly unemployment rate to a six-year high of 15.6% in the fourth quarter of 2016. This rate remained near 15% over the next six quarters as employment and labour force levels remained steady. In the second half of 2018, a decline in labour force size reduced the unemployment rate, where it remained steady until pandemic-related job losses elevated the rate through most of 2020. While labour market conditions improved in Q4 of 2020, employment fell in the following quarter due to a large COVID-19 outbreak. Since then, employment has grown faster than the labour force, pushing the unemployment rate downward.

Show data table: Newfoundland and Labrador quarterly employment and unemployment rate

Newfoundland and Labrador quarterly employment and unemployment rate

	Unemployment rate (%)	Employment ('000)
2Q2016	12.6	235.8
3Q2016	13.4	233.2
4Q2016	15.6	226.7
1Q2017	15.1	224.8
2Q2017	14.8	223.8
3Q2017	15.1	219.4
4Q2017	15.0	224.4
1Q2018	14.9	223.1
2Q2018	14.9	222.8
3Q2018	14.1	225.8
4Q2018	12.5	225.4
1Q2019	12.3	229.0
2Q2019	12.4	228.1
3Q2019	12.3	226.9
4Q2019	12.1	224.1
1Q2020	12.4	221.7
2Q2020	16.5	197.8
3Q2020	14.7	212.8
4Q2020	13.1	222.5
1Q2021	13.7	216.0
2Q2021	12.9	220.9
3Q2021	12.5	221.3
4Q2021	12.4	222.5
1Q2022	12.7	224.6
2Q2022	10.2	229.6

Source: Statistics Canada Labour Force Survey

Prior to the COVID-19 pandemic, Canada generally experienced small, consistent employment gains, whereas employment levels in Newfoundland and Labrador were more volatile. The onset of the pandemic caused massive job losses at both the provincial and national levels in the second quarter of 2020. While the two quarters that followed brought employment gains at both levels, Newfoundland and Labrador had a sharp loss in the first quarter of 2021 as a COVID-19 outbreak resulted in widespread restrictions and business closures.  Since then, both the province and country have experienced varying degrees of quarterly growth, with each area having employment rise by approximately 6% over the past five quarters.

Show data table: Newfoundland and Labrador quarterly employment growth

Newfoundland and Labrador quarterly employment growth

	Newfoundland and Labrador	Canada
2Q2016	2.0%	0.2%
3Q2016	-1.1%	0.2%
4Q2016	-2.8%	0.6%
1Q2017	-0.9%	0.7%
2Q2017	-0.4%	0.4%
3Q2017	-2.0%	0.5%
4Q2017	2.3%	0.7%
1Q2018	-0.6%	0.2%
2Q2018	-0.1%	0.2%
3Q2018	1.4%	0.4%
4Q2018	-0.2%	0.6%
1Q2019	1.6%	0.8%
2Q2019	-0.4%	0.7%
3Q2019	-0.5%	0.2%
4Q2019	-1.3%	0.1%
1Q2020	-1.1%	-1.3%
2Q2020	-10.8%	-11.3%
3Q2020	7.6%	8.3%
4Q2020	4.5%	2.4%
1Q2021	-2.9%	0.4%
2Q2021	2.3%	0.6%
3Q2021	0.2%	1.7%
4Q2021	0.5%	1.5%
1Q2022	0.9%	0.8%
2Q2022	2.2%	1.0%

Source: Statistics Canada Labour Force Survey

Most of the employment growth over the past quarter has been among males 25 years and older, with a gain of 3,400 jobs. Over the same period the labour force for this group dropped (-1,800), resulting in its lowest quarterly unemployment rate since 1989. The unemployment rate for females of this age group declined slightly over the quarter, due to a small increase in employment.

The youth (aged 15 to 24 years) unemployment rate decreased from the previous quarter, as employment outpaced labour force growth. Over the past two quarters, the youth unemployment rate fell by 3.7 percentage points, as employment rose to its highest level since 2017.

Source: Statistics Canada Labour Force Survey - Table 14-10-0287

Employment by industry

Employment growth since the previous quarter was driven by the services-producing sector (+4,900), with most industries gaining jobs. Accommodation and food services (+1,800) had its strongest quarterly increase since the end of 2012. Transportation and warehousing (+1,000) grew for the fourth consecutive quarter, and public administration (+800) reached a record high. However, business, building and other support services (-1,100) fell to its lowest quarterly level since Q3 of 2018.

Employment in the goods-producing sector showed little change for the second consecutive quarter. However, results were quite mixed in the sector. Construction (+900) increased for the fourth quarter in a row, matching its employment level in Q1 2020, just prior to the onset of the COVID-19 pandemic. However, manufacturing (-1,200) had a notable drop. This industry has lost 1,900 jobs over the past two quarters.

Note: Totals may not add due to rounding

Source: Statistics Canada Labour Force Survey - Table 14-10-0355

Regional analysis

Compared to a year earlier, employment growth was concentrated in one economic region. However, all three regions of the province experienced a drop in their unemployment rates.

Quarterly employment on the Avalon Peninsula increased for the fifth consecutive quarter, mainly in full-time positions. The labour force also grew, but could not match the gain in jobs. This resulted in a lower unemployment rate. Job growth in the most recent quarter was the strongest on record going back to 2006, The services-producing sector (+8,300) had most of the job growth compared to a year earlier, led by educational services (+3,300), wholesale and retail trade (+2,100), and accommodation and food services (+2,000). However, finance, insurance, real estate and leasing lost jobs for the fourth consecutive quarter. In the goods-producing sector, construction showed impressive growth (+3,800).

The unemployment rate declined in the South Coast–Burin Peninsula and Notre Dame-Central-Bonavista Bay economic region. The labour force had a sharper loss compared to employment. Growth in the services-producing sector (+1,000) was outweighed by a drop in the goods-producing sector (-2,000). Construction (-1,400) and manufacturing (-1,200) had the deepest losses, while the strongest gains were forestry, fishing, mining and oil and gas (+1,000), as well as accommodation and food services (+900).

In the West Coast–Northern Peninsula–Labrador region, the labour force fell faster than employment, resulting in a lower unemployment rate. Part-time employment gains were outweighed by full-time losses. The services producing sector led the decline, with the strongest drop being in health care and social assistance (-1,800). The largest source of growth was in transportation and warehousing, with 1,100 more jobs than a year earlier.

Note: Totals may not add due to rounding

Source: Statistics Canada Labour Force Survey - Table 14-10-0387

Show data table: Newfoundland and Labrador quarterly employment growth, by economic region Q2-2021 to Q2-2022

Newfoundland and Labrador quarterly employment growth, by economic region Q2-2021 to Q2-2022

Economic region	Percentage
Avalon Peninsula	8.9%
South Coast-Burin Peninsula and Notre Dame-Central Bonavista Bay	-1.9%
West Coast-Northern Peninsula-Labrador	-1.8%

Source: Statistics Canada Labour Force Survey