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       Sudbury Labour Market Information Newsletter - April 1997 Prepared By Marilyn Prus, Labour Force Statistics The Northern
Ontario labour market was little changed from March. The
unemployment rate moved slightly up from 11.7% to 11.9%
due to 1,000 more unemployed. Employment remained
at 355,000. In Northeastern Ontario employment increased 1,000 to 246,000 and unemployment decreased 1,000 resulting in the unemployment rate declining from 12.5% to 12.1 %. The Sudbury unemployment rate moved downward from 10.0% to 9.3 % due to a weakening labour market. While employment stayed the same, the labour force shrank by 1,000 as unemployed workers moved out of the labour market. (Northern Ontario Regional Economist) The number of people in receipt of Employment Insurance benefits is on the decline. As of April 27, 1997, there were a total of 8,340 active regular claims. (Regular claims are those claims that were established as a result of work shortages or where the claimant left employment for justifiable reasons). The total number of regular claims as of April 26, 1996, was 8,420 or a decrease of 80 claims. Included in the above figures are the number of regular claims in the Espanola area which has experienced a slight decrease in the number of claims. On April 27, 1997 there were 1,349 active regular claims in Espanola, while the figures for April 26, 1996 stood at 1,311. Espanola experienced a decrease of 38 active regular claims. (Established Claims Analysis) Bits and Pieces: It’s tough out there - Graduating post secondary students are facing the reality of the job market of the late 1990’s, and that is that graduates of general fields are not prepared for the work place. Studies catering to the high-tech industry, such as computer sciences and engineering, are more likely to lead to a job. It appears to me that this reality is in sharp contrast to what was the experience of the baby boomers in the 60’s. People entering the labour force in those times were encouraged to explore themselves, learn about their interests and aptitudes, train in an area that met their needs and strive for job satisfaction. Careers available in information technology - There are an estimated 413,000 people employed in the information technology sector (1995 statistics) and the industry is experiencing a growth rate of 26 % annually. The employment growth rate is 11% annually which is 4 times the national average. Currently there is a shortfall of 10,000 - 11,000 workers and this is expected to increase to 20,000 - 30,000 workers by 1999. IMF sees rosy future for Canada - The International Monetary Fund has issued a glowing assessment of Canada’s economic performance. The have predicted that Canada’s economic growth will outstrip all other industrialized countries. Continued growth was predicted for several years to come. Although Canada’s economic growth was just 1.5% in 1996, short of IMF predictions, IMF has predicted a growth rate of 3.5% this year and 3.4% in 1998. Auto parts sector warned of shortage in skilled labour - There are few young Canadian skilled trades workers available to replace those hired in the 60’s and 70’s who will be retiring over the next few years. The problem is caused in part by an aging labour force, by a decline in immigration levels for skilled trades people , by an education system that doesn’t prepare people for work and by attitudes towards trades say auto industry executives. Although the author agrees with the statements above, it appears that the very people who have identified the problem, have the solution. If there will be a need in 5 to 10 years, then the industry should now be working with the educational system and government to start the process to fill their needs. It is time that industry started to take some responsibility for meeting their own training needs, financially as well as morally. One cannot help but compare the successes in Sudbury with the above. Lively High School is an excellent example of how an educational institution, working in conjunction with industry and funded by government, are training students in high technology and robotics so that they may become active participants in the labour market. Quality of jobs improving, CIBC says- The results of the latest version of the Canadian Imperial Bank of Commerce’s new employment quality index indicate that not only is the number of jobs on the increase in Canada but the jobs are becoming more stable and the pay is better. Consumer spending spree chugs on - The consumer is back. Inflation isn’t. For the sixth month in a row, consumer spending has been on the increase, while inflation has remained in check.... two concrete signs that the economy is going in the right direction......UP! á An update on a permanent casino - While the City of Sudbury council continues to refuse a permanent casino, Rayside-Balfour councillors are unanimously in favour of a permanent casino and have gone as far as identifying Sudbury Downs as a perfect site for the facility. Valley East took a different approach. Negative response by the public concerning the casino prompted council to not only vote no to a feasibility study on locating a casino in their area, they also voted not to allowing a casino as currently proposed by the provincial government. The 1996 census - results of the 1996 census are beginning to roll out of Statistics Canada. The Regional Municipality of Sudbury’s total population as of 1996 was 160,488, up 1.8% from the 1991 total of 157,613. The City of Sudbury was down ..9% , (92,059 from 92,884). Valley East experienced a population growth of more than 7% , one of he fastest growing communities in the country, 23,537 from 21,939). Rayside-Balfour was 16,050, up 6.7% from 15,039. Nickel Centre was up 5.6% (13,017 from 12,332). Walden was up 5% ( 10,292 from 9,805). Onaping Falls dropped 2.3% (5,277 from 5,402). Capreol’s growth was 2% rising to 3,817 from 3,809. The District of Manitoulin had a 2% increase in population over the past 5 years, growing to 11,413 from 11,192. Mining: Outlook for Sudbury - Inco expects to produce the first concentrate in Voisey’s Bay in 1999 and the first refined nickel in late 2000 with full production anticipated by 2001. It is expected that the time frame from the point of discovery to production will be five years. Some 1,400 people will be employed by the company at the time of full production. Natives seek Inco’s help - Negotiations between the Inuit an d the Innu and the Newfoundland government over the ownership of the Voisey’s Bay have come to a standstill. The Labrador aboriginal community sent representatives to Inco’s share holders meeting in April to ask for Inco’s influence in getting talks restarted. Mike Sopko, CEO for Inco rejected the pleas for assistance. Asian growth drives demand for Inco’s nickel - Nickel is used in the production of stainless steel. Twenty years ago, Inco sold about 5% of it’s nickel production to Asian customers. Last year 50 % of it’s nickel production was sold in Asia (about the same amount produced in Sudbury). Inco is counting on the demand for nickel to remain high. In order to finance Voisey’s Bay, Inco has borrowed $1.298 billion US. In 1998, the demand for nickel is expected to outpace the supply. Inco profits - Inco produced 412 million pounds of nickel last year and about 1/2 of that was produced in Sudbury. In order to satisfy the demands of its customers, Inco had to buy an additional 146 million pounds. For the first quarter of 1997, Inco recorded profits of $58 million U.S. which was up from the $26 million profit reported in the last quarter of 1996 and down from the $63 million profit for the first quarter of 1996. Inco strives for no-miners mine - For 10 years Inco has been working on the idea of an automated mine and expects to have an operational prototype in place by the year 2000. No miners, no cagetenders, no trammers will be needed in the high tech mine of tomorrow. Inco is attempting to maintain Sudbury’s nickel production ( which stands at 230 million pounds a year) while lowering costs. At least 4,300 of the company’s workforce are eligible to retire within three years. Inco hopes to have the minerless mine in place by the time the bulk of their workforce retires. Talks set to resume at Inco - The Steelworkers and Inco have begun the bargaining process. A big issue for the union is the contracting out that is on the increase. Job security will be a top priority at the negotiating table. There is a lot riding on these talks. Inco needs cash to develop Voisey’s Bay so their concern is maintaining or surpassing production levels to meet the demands of their customers. Falco profits down - Falconbridge earned $46.1 million in the first quarter of 1997, down from $72.4 million profit realized in the first quarter of 1996 but profits were up 66% over the $27.8 million the company reported for the last quarter of 1996. CEO for the company, Oyvind Hushovd is optimistic stating production has remained strong and operating costs are going down. Construction: Building Permits Issued Region of Sudbury:
Lay-Offs and Re-engineering: IGA Espanola to close on May 24, 1997 - Twenty-five employees are affected by the closure. The Drug Trading Company in Sudbury closed it’s doors April 25, 1997 affecting 9 employees. On the Down Side: Manitoulin Board of Education is expecting a $250,000 cutback. Although the most recent cut was anticipated, it will still be difficult to implement. The cutbacks are part of the provincial government’s plan to chop a billion or more dollars from education over the next few years. The Board expects that either classroom sizes will have to enlarged or programs dropped as a result of the cuts. Future of Winks uncertain - Nine full-time and part-time employees employed at the Notre Dame location are uncertain about their future as the Winks chain is being sold. Brennan House is closed - Brennan House, a shelter for youth in crisis and located in Espanola, closed due to government cut-backs. On the Bright Side: Ontario helps bankroll 34,000 jobs for students- The Ontario government announced a $37.5 million plan to help 34,000 young people find work this summer (4,000 more than last year). Components of Ontario Summer Jobs include:
2,000 jobs for Ontario youths at MNR - Chris Hodgson Minister responsible for the Ministry of Natural Resources announced the creation of over 200 summer jobs. There will be over 1,600 positions sponsored through the provincial government’s Summer Experience Program and an additional 400 jobs through the MNR’s Ontario Ranger Program. Youth employment in Alberta - Two thirds of all new jobs created for Canadian youth in 1994 and 1995 were in Alberta even though that province accounts for only 10% of all youth in the labour force. Perhaps other provinces should be looking into how this was done? Is that old saying "Go west, young man" something worth considering? MP organizes Cuba meeting - Nickel Belt MP Ray Bonin, in conjunction with Fednor, will host an information session on exporting goods to Cuba in response to local entrepreneurs who expressed an interest in doing business with the Caribbean island. Housing prices dropping - While sales of homes increased 14% this spring over the first three months of 1996, prices dropped an average of 1.8%. Good news for the buyer... not so good for the seller. Harris acts to save unique program - Funding will continue for the Better Beginnings, Better Futures Program operating in eight Ontario communities, including Sudbury. The program was initiated in 1991 by the former NDP government in an effort to address many of the socio-economic problems that impact on the educational and social development of lower income children. Three provincial ministries contribute $657,000 a year to fund the program. Little current firm tries to alleviate concerns - Cold Water Fisheries, one of the largest employers on Manitoulin Island, recently unveiled $500,000 of new equipment and facilities. It is hoping to expand it’s present state-of-the-art operation by adding employees and a new cage site to the fast-growing aquaculture industry. Eight years ago the company supplied about 8,000 pounds of fish per week but are now supplying over 40,000 pounds per week across Canada and the United States. The original staff of 5 has grown to 37 and another 13 could be hired this summer if the appropriate government agencies approve the fish tanks. St. Albert’s Adult Education Centre - Good News!.. St. Albert’s will remain open for the 97/98 school year but with a few changes to make the operation more feasible economically. Restaurant set for expansion - Ristorante Verdicchio, located on Kelly Lake Road, is in the process of adding on an 85-seat banquet room. Royal Bank to lend Eaton’s up to $99 million - This loan will boost Eaton’s revolving line of credit and will help keep 85 stores operating, including the Sudbury branch. Eaton’s plans to pour $25 million into more sales staff in order to increase customer service. New Businesses: Paint the Town, a business offering ceramic supplies and the use of studio space plus a coffee and dessert bar has opened in the Cedar Pointe Mall. Dockside, a clothing store geared to men who prefer casual wear, opened in the New Sudbury Centre. It is the 25th in the Dockside chain. Zio’s Cafe will open a third location will open in may at the new downtown bus depot and will attempt to provide an atmosphere reminiscent of Europe. A new Country Style Donuts opened on Hwy 44 in Chelmsford with a staff of about 15 employees. Giant Tiger, a bargain style retail store, opened it’s doors in Espanola this month, employing 25 full and part-time workers. Electrolysis by Barb E. began operation in Gore Bay out of the home of owner/operator Barb Middaugh. Barb started her own business after her hours of work were cut at the court house. Winnipeg company expands to Sudbury - Endurapak, a company that makes woven plastic bags that hold up to 6,000 pounds has chosen Sudbury as it’s expansion point. The plant is expected to inject over $500,000 into the local economy in equipment and renovation costs and create 55 full-time jobs. Karen’s Closet, a retail outlet for women’s designer clothes opened in the south end. Northern Synthetics, a distributor of Amsoil, a synthetic oil, started up in September , 1996. Pheasants Auto Service, a full service garage opened in Wikwemikong in early April. Websites Worth Visiting: http://www.nor.ont.ca is the site for information on Northwestern Ontario from the arts to business to communities. Highlights From HRC C Sudbury: The Summer Career Placement Program budget for the summer of 1997 will be $303,000 and enable 114 jobs for youth to be created. Feds chip in on YMCA campaign - The Sudbury HRCC has approved a $700,000 grant under the Transitional Jobs Fund to assist with the establishment of a $18.2 million YMCA Centre for Life and City of Sudbury Older Adult Centre to be located on Durham Street. The centre is expected to employ 82 people when it opens in 1999. Projects get money - Two youth programs received funding from HRCC Sudbury this month and the total dollar allocation was $295,530. A Youth Internship Canada program through Lively High School’s High Tech Centre will help 30 grade 12 students at risk of dropping out develop alternative skills and gain work experience. A Youth Service Canada project, sponsored by the Walden Youth for Youth Inc., will involve 20 youths , who, for a total of 26 weeks will build and promote four waterway trails within the community. Endurapak Inc., a Winnipeg based manufacturer, has been funded by HRDC for $194,910 to assist them in opening a second manufacturing facilty in Sudbury that will serve Eastern Canada. The total cost of the new facilty set-up is expected to cost $540,000. and employ approximately 55 persons. The business expects to be in complete production by the summer . Editor’s Notes The above excerpts have been taken from the following newspapers:
Your comments and suggestions are always welcome! The Labour Market Information Unit is only one source of labour market information in our community. Any labour market information that you would like to share with your community partners would be a welcome addition to our news bulletin. I am planning on running a section called "The Community Corner". Any newsworthy information would be welcome. I can be reached at: (705) 670-6674 ( phone ) or (705) 670-6727 (fax). Yours in Partnership, Marilyn Prus
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