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       Sudbury Labour Market Information Newsletter - February 1997 Prepared By Marilyn Prus, Labour Force Statistics In the Sudbury Census Metropolitan Area (CMA), employment fell by 2.5 %, or 2,000 jobs. Job losses were greatest in the area's manufacturing, primary, transportation/communications/utilities and wholesale/retail trade sectors. As a result, the unemployment rate rose to 9.8 percent from 9.6 percent in January. The deteriorating job market caused 2,000 people to stop looking for work, prompting the labour force to decline to 86,000. Mirroring this decrease, the participation rate fell to 60.9 percent from 62.3 percent in the previous month. According to rank, the St. Catherines CMA had the highest unemployment rate among all urban centres in Ontario at 10.8 percent. Sudbury had the second-highest rate at 9.8 percent, with Thunder Bay ranking fifth at 9.1 percent. Hamilton had the lowest rate at 7.8 percent. (Northern Ontario Regional Economist) Not surprisingly, the number of people in receipt of Employment Insurance benefits is on the rise. As of March 1, 1996 there were a total of 7,498 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). However, the total number of regular claims as of March 2, 1997, was 7,650 or an increase of 152. These figures are an indication of an economy on the decline and are congruent with the unemployment rate reported by Statistics Canada. Included in the above figures are the number of regular claims in the Espanola area which has experienced a decrease in the number of claims. On March 1, 1996 there were 1,301 active regular claims in Espanola, while the figures for March 2, 1997 stand at 1,114. Espanola experienced a decrease of 187 active regular claims. (Established Claims Analysis) Bits and Pieces Inflation rate increasing - Statistics Canada reported that Canada's annual inflation rate remained static in January 1997 at 2.2%. Although consumers benefited greatly from significantly lower interest rates, food, university tuition and telephone services contributed considerably to the increase. Workfare revisited - The provincial government's workfare program is still a controversial issue for the Sudbury community. The program has three components: employment support, community placement , and employment placement. Through the program, the Ministry of Community and Social Services has set a target of placing 1500 social assistance recipients in real jobs, jobs that will be meaningful and beneficial to the community while not displacing workers already employed. Anti-poverty groups are taking the stand that social assistance recipients want to work, that our area is suffering from a labour surplus , not unemployment and that by upgrading education and providing skill training to social assistance recipients, the government is only creating more highly skilled unemployed. When the Ministry of Community and Social Services presented their Business Plan for Workfare, there were several contentious issues raised. Critical issues that still need to addressed include: protection against harassment, workplace health and safety, the right to refuse dangerous work and guarantees that workers will not be used as strike-breakers. It has been agreed that the Sudbury Community Legal Clinic will work with the region's social services department to develop participants' agreements. The board of directors is expected to present it's plans for workfare to the province before the end of March in order to qualify for $200,000 in start up costs. Where not to look for a job- According to John Kettle, a "consulting Futurist" for the Globe and Mail, Manufacturing is not where the action is in today's Canadian economic scene. From 1975 to 1989, the output of manufacturing industries remained at about 19% of the GDP (Gross Domestic Product). The recession of the early nineties caused manufacturing to take a nose dive to 16% of the GDP in 1990. If the trend of the past 50 years continues, it is predicted that by the year 2010, manufacturing will be at 14% GDP at best. So why do people line up by the thousands when factory jobs open up? Visibility! Factories put hundreds and sometimes even thousands of workers in one place. You can see the smoke and the buildings. It appears a lot is happening when, in fact, there is really little happening at all. The Internet not exactly Main Street for doing business - Only 1 in 20 companies are dealing on the Internet, a poll has found. Why? Protecting and maintaining company secrets are one factor but the other is there has been no analysis of the cost effectiveness of doing business on the Net. Have you read Boom Bust & Echo by David K. Foot? He believes that 2/3 of everything that happens in the economy can be explained by demographics. Well according to a recent study, sales in mini- vans are dropping. It appears that we baby-boomers aren't transporting the kids to the arenas and pools any longer. In fact, those "kids" may be transporting us! A snapshot of paycheques in Canada - Statistics Canada has added a new category to their monthly labour force survey - wage data. Here are some interesting statistics gathered from January's survey:
Mining Sudbury hosting mining expo - The Canadian Mining and Industrial Exposition `97 will be held in Sudbury at the Garson arena. Organizers are hoping to make it one of the largest of it's kind in the country. The three day show to be held April 22-24, will feature the industry here in Sudbury and illustrate the scope and impact that this sector has on the local economy. It will showcase some of the most advanced and professional companies that not only service the local economy but national and international economies as well. It is expected that attendees from Canada and abroad will be attracted to the event. Inco profit squeezed in 1996 - Inco Ltd., hurt by lower nickel prices and a furnace breakdown in September at it's Indonesian operation, reported a profit of $179 million for 1996, down from $227 million a year earlier. The company is expecting both an increase in industrial production and a reduction in inventories held by stainless steel producers. Based on this knowledge, Michael Sopko, chairman of Toronto-based Inco expects improved profits in 1997 because of higher nickel prices. Falconbridge in the black too - Falconbridge reported consolidated net earnings for 1996 of $248 million, down 26% from the $333 million profit registered in 1995. Both Inco and Falconbridge report their earnings in American dollars. Construction It's a go! New complex this summer - The sign first went up in 1994 announcing a forthcoming restaurant and business complex. Espanola Restaurants Incorporated will be putting up the $2 million mall this year to be located at the junction of highways 6 and 17. Slow start for home builders - There were only 2 housing starts in January this year in the region, down from the 6 recorded in 1996. CMHC doesn't feel that the poor start will be a reflection of the house construction industry this year. They are confident that the industry will pick up as interest rates are still low and the demand continues to be strong in the resale market. Fishing and Trapping Fur trade thriving - After nearly a decade of tough times, the fur industry is experiencing a revival. Over the past decade the number of fur garments being manufactured in North America remained constant but a glut of both wild and ranched furs kept the prices low. There are now new provincial and federal trappers' groups in the field. The Ontario Fur Managers Federation has entered into a furbearer-management partnership with the Ministry of Natural Resources. When prices were depressed, trappers were lucky to get $12 for a beaver pelt. Recently, at the Seattle auction, the highest price ever recorded for a beaver pelt came in at $532. This sector of the Sudbury and Espanola economy has not previously been reported on in the news bulletin although approximately .04% of the labour force in our area is involved in work activities in this sector. It could be said that any impact in this sector is negligible overall, however the ripple effect in other sectors of the economy can be felt. If fur prices continue in their upward trend, this can be good for trappers but perhaps not so good for retailers as consumers are reluctant to open their purse strings for high priced luxury items. Lay-offs and Downsizing The lay-offs and downsizing that began several years ago with the federal government and continued with the provincial government, has now filtered down into the regional level. Regional councillors approved a smaller council this month by cutting the governing body to 15 (6 positions were axed). This move is expected to save the taxpayers of the region $70,000. Before this proposal takes effect, it must be approved by the provincial government and the public must have a chance to comment on the plan at a public hearing scheduled for March 20, 1997. Some concerns have been raised that it may be difficult to get people to fill the positions due to increased work loads. New Businesses Warehouse style shopping right for Sudbury? - Price-Costco Canada Inc. and Canadian Shopping Centre (Sudbury) have approached the city to rezone an area north of the Kingsway to allow them to construct huge (over 100,000 square feet) shopping complexes. These stores known as warehouse membership operations, contain all manner of food items and goods at some of the most competitive prices. Camps are forming within the community regarding the advantages and disadvantages of the opening of these businesses. One group believes that consumers will benefit by lower prices; the large stores will attract shoppers from all over the north so that all retailers, hotels and restaurants could benefit and that Sudburians would be more likely to shop locally, thus keeping dollars in our community. On the other hand, another group feels that small businesses will not be able to compete and will have to close and that the downtown business community will suffer further losses as these companies are not considering locating in the downtown core. Both the negative and positive repercussions of these stores opening are valid. The decision rests with the city government to decide whether or not the benefits of allowing these retail outlets to open outweigh the negatives. Continued - The Sudbury Regional Council OK'd a planning committee recommendation to rezone 14.4 acres of land to allow Price-Costco to build a 125,000 square foot store on the Kingsway. The company has three years to build the store before their application expires. Their rival, Canadian Shopping Centre (Sudbury) is expected to have their application reviewed in March by Regional Council. Business with a twist - The Pretzel Twist , offering a variety of low-fat or regular pretzels coated in cinnamon, cheese, or poppy seeds , opened in the Supermall recently. New sports bar opens - Gordon's Lodge of Gore Bay has recently renovated their dining room, turning it into a sport's bar. From The Pantry to home renovations and interior design - The Martins, who started The Old English Pantry, a tea room in downtown Little Current, have started yet another business- designing and renovating homes. On the Down Side School closures - It seems that Capreol High School and St. Albert's Adult Learning Centre are headed for the chopping block as the effects of provincial cuts still ripple through the community. The residents of Capreol are putting up a fight to keep the high school open, while the consumers of St. Albert's educational services have started campaigning for their school's survival. It worked for Toronto ! The megacity plan has been scrapped. MHC faces $415,000 funding cut - The Manitoulin Health Centre is faced with an overall reduction of $415,000 in it's 1997 budget. This is part of the provincial government's commitment to cut funding over a 3 year period. Last year, the MHC received $200,000 less in funding that the previous year. Ontario university applications dip - The number of high school students applying to Ontario universities this fall has dropped for the third consecutive year. Demographics can explain some of the declining enrollment as the pool of 18 to 24 year olds is declining. In a year or so, the numbers are expected to rise. The other factor that has to be considered is the simple truth... higher education just costs more today (more provincial cut- backs). However five of the seventeen universities reported an increase in enrollment. Laurentian enrollment declined by 17%, second highest in the province. Lakehead's enrollment declined by 20%. Job growth drags despite economic boom - Interest rates are low, the stock market is booming but in just 2 days this month, retail and industrial companies chopped 2,000 jobs. Most private sector economists predict growth between 3 and 4 % this year ( that means between 250,000 to 300,000 jobs). However this growth depends on a rebound in consumer spending. Recent reports indicating consumer confidence is increasing but with this trend continue as we see more jobs disappear? Losses force Eaton's to cut stores, workers - On February 27, Eaton's announced that it was experiencing financial difficulty due to heavy losses over the past three years. Drastic measures will be needed in order to get the chain back on track. Closures across the country will be required as the store restructures. Although Sudbury may be affected, it will be several months before the community will be informed about either a complete closure or downsizing. Indications appear to be positive that the store will remain open. More cuts in the retail sector - Another retail chain that experienced financial problems of a long standing nature was Met Mart, a subsidiary of Greenberg Stores Limited. In February, this company voluntarily placed it's 169-store retail chain into bankruptcy. Saan Store has made a bid to acquire 89 of the stores. To date, the Espanola store is still part of the package to be taken over. Economist predicts recession despite others' sunny forecasts - Bay Street economist Mark Mullins is predicting another recession within a year. He sees the Canadian economic growth of three per cent this year turning into none in 1998. Mullins believes that after six years of uninterrupted expansion, the American economy is reaching the point where inflationary pressures are rattling central bankers. That means interest rate increases, and if this occurs, Canada will follow suit. The goods news is that the downturn will be short and shallow. On the Up Side National boxing training centre goes to Rayside - Gord Apolloni, Olympic boxing coach, has relocated his Top Glove Boxing Academy to the Trillium Centre in Rayside Balfour. But that isn't all! The new site will be one of three National Training Centres for Canada's national and provincial boxing teams. There are only 2 other national training centres in existence in Canada - one in Saskatoon and one in Montreal. Thirty dormitories are currently being developed with the assistance of the Town of Rayside- Balfour and Nickel Belt MP Ray Bonin. Unemployed youth - The federal government is concerned about the high unemployment rate for youth across the country. Initiatives to address the situation have been developed. In order to make it easier for people to access information on the available programs, a national, bilingual, toll-free line has been activated to provide information about the Government of Canada's youth initiatives for young people and potential project sponsors. The Government of Canada Youth Information Line can be reached by calling: 1-800-935-5555. The Liberal government announced this month that it plans to spend $255 million to combat youth unemployment. It is anticipated Ottawa will promote and share the costs of internships in the private sector and focus on summer jobs for 18 to 25 year olds. Projectionists reach tentative deal - Unionized projectionists with the Cineplex - Odeon theatre chain have reached a tentative contract agreement that could end a three-month lockout of the projectionists by the theatre chain. The deal covers 2 projectionists at the Odeon Theatre on Elm St. Support local businesses - While the Sudbury Chamber of Commerce is supporting a "shop local" campaign to promote local businesses, Manitoulin Island is doing it! Robertson's IDA in Gore Bay will soon be providing pharmacy services to the Manitoulin Lodge Nursing Home. Internship program helps arm students for the future - Human Resources Development Canada has provided $95,000 to Lively District Secondary School to act as a pilot for a Youth Internship Program. The program will assist Grade 12 and Grade 13 students to acquire skills needed to enter careers in technologically-advanced industries and receive credits towards their diploma at the same time. Two people were hired to develop partnerships with local businesses willing to train students on the job for a ten week period. Students train for high-tech jobs - In conjunction with the provincial government, Lively District Secondary School is hosting an innovative pilot project called TEST ( Technology Education Solutions for Tomorrow ). In partnership with local industry, business and education leader, students will receive a hands-on education in communication and manufacturing technology as well as technical design. The program aims to better prepare students for a more technologically-dependent workplace. Robotics, hydraulics, computer animation and video technology are some of the things students will learn in the TEST program. It is indeed encouraging to see this type of partnering beginning to take place - and in our own community! The educational system is responding to the needs of business and both parties are recognizing that our youth are our most valuable resource. Investing in our future begins with the youth of any community. There exists a need in our business community, a need that will be filled outside of our country unless this type of planning and partnering continues. BRAVO to Lively District Secondary School for their initiative! BRAVO to the provincial government for the $500,000 grant that will allow this initiative to take place! And BRAVO to our business community for offering a future to our youth! Regreening program seeks new partners - The Land Reclamation Program or the regreening of Sudbury has been dealt a serious blow as the Ontario Conservative government has ordered the Ministry of Natural Resources to get out of the nursery business. The Regional Municipality of Sudbury bought seedlings from the MNR for about 1/3 the price charged by the public sector. To date, 2,703,000 trees were planted in the region since the program began in 1984. In order to ensure the program's survival, new partners are needed. A sponsor has offered to donate 500,000 trees. The region contributes more than $100,00 annually. The federal and provincial contributions usually match the regions. In the past, the federal contribution has been in the form of make-work programs through the Human Resource Centre. Inco and Falconbridge kick in $30,000 a year, and some supplies. Conditions right for job growth - Statistics Canada reports that it's help-wanted index which measures ads in major newspapers across the country and is an indicator of employers' hiring plans, rose a further 3% in January, the fourth straight monthly increase. Preliminary figures show employees' wages and salaries "rose strongly" in November 1996, also the fourth straight monthly increase. Part of the improvement in earnings was due to the average number of hours a week employees worked. Analysts say that this wage increase is needed to get the consumer to spend more, thus "kick-starting" the economy. City gets nod to host hockey championships - The Air Canada Cup - Canadian Midget "AAA" Hockey Championships will be held at the Sudbury Arena in April 1998. The city will also host the IX Canadian Olympics Summer Games three months after the major hockey event. Websites Worth Visiting http://www.gov.on.ca/MNDM Highlights From the Sudbury Human Resource Centre In February, the Sudbury Human Resource Centre hosted our annual community planning meeting at the Canadian Hearing Society on Paris Street, Sudbury. We extend our thanks to all our community partners who participated in the community planning process. A very special thank you is extended to Marc Serre and all the staff of the centre for their support and patience in helping to make this day a success. Editor's Notes The above exerpts have been taken from the following newspapers: The Sudbury Star, The Manitoulin Recorder, The Manitoulin Expositor, Northern Business, The Mid-North Monitor, The Northern Life, The Toronto Star and The Globe and Mail. A Message from the Human Resource CentreWe welcome your comments and feedback on an on-going basis. If you have any labour market information that you feel is important to share with your community partners, please contact our office and we will be pleased to include it in our next newsletter under the heading "Community Corner".
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