Sudbury Labour Market Information Newsletter - November 1996

Prepared By Marilyn Prus,
LMIA Sudbury HRC

Previous Issues

Unemployment Statistics

Sudbury's unemployment rate (three month averaging) in November 1996 was 9.5%, up .1% from October, 1996 and November, 1995's rates of 9.4%. This increase in the unemployment rate occured as there was a slight increase in the number of job seekers looking for work. According to rank, Sudbury Census Metropolitan Areas again had the second highest unemployment rate of all urban centres in Ontario. (Northern Ontario Regional Economist)

There was an increase of 1063 in the total number of active employment insurance claims from November, 1995 to November, 1996. As of November 24, 1996, there were 8053 active claims but only 6990 active claims as of November 25, 1996. Given the number of public sector jobs lost over the last seven months, this increase comes as no surprise. Since many individuals leaving the public sector did so with severance packages, their employment insurance claims would only become active after several months. (Established Claim Analysis)

A breakdown of the above statistics are as follows:

Effective November 25, 1995 Effective November 24, 1996

Sudbury: 6016 active claims Sudbury: 7017 active claims

Espanola: 974 active claims Espanola: 1036 active claims

Total: 6990 active claims Total: 8053 active claims

Bits and Pieces

Computer skills a must — adults, children need to survive in knowledge-based economy. All Canadians must become more skilled at using computers, a new report says. Computer literacy is one of the skills Canadians will need to survive in the new "knowledge-based economy". That means "ensuring our children are computer literate" but it also means adults must keep learning throughout their lives, writes the report's author, Statistics Canada analyst Jillian Oderkirk. Half of all Canadian workers now use a computer on the job and the demand is growing rapidly. But schools can't keep up with the challenge and many adults can't afford a home computer, her report says. Among the 56 per cent of adults who described themselves in 1994 as computer users, just over a third used the machines to analyze data and a sixth employed them to write programs. Only one-quarter of children live in a home with a computer and they are largely the well-off. (Toronto Star November 1,, 1996)

The computer gap between rich and poor Canadians "is widening where there is not a systematic approach to ensure equitable access," said Veronica Lacey, chairwoman of the education committee of the federal Information Highway Advisory Council. There are mixed signals about whether the gap will worsen or improve said Jillian Oderkirk but "Canadians are quick to adopt new technology" as it becomes more available and the price drops. (Globe and Mail November 1, 1996)

Canada poised for prosperity — Bank of Canada Governor Gordon Thiessen says. Bank of Montreal economist Paul Ferley agreed that Canada is "on the verge of seeing the payoff" of the rate cuts since the spring of 1995 that lowered the top of the central bank's target range for overnight loans to 3.5 per cent from 8.25 per cent. "We are on the brink, I believe without a shadow of a doubt, of what is going to be one of the longest periods of sustained [economic] growth and progress this country has seen since the Second World War," said Finance Minister Paul Martin. The Bank of Montreal forecast calls for unemployment to fall to 8.7 per cent by the end of 1997, as a result of the stimulative effect of lower interest rates. (Globe and Mail November 7, 1996)

Economist predicts booming future — The widespread use of computers is making the current information and communications technology revolution comparable to the first industrial revolution in 18th-century Britain says Richard Lipsey, an economics professor at Simon Fraser University and fellow of the Canadian Institute for Advanced Research. The economic upheaval and uncertainty of the past two decades are almost over and the industrial world is about to embark on a sustained boom that will last for decades. Mr. Lipsey said growth should be encouraged because it has a far more powerful impact in raising living standards than other items that often concern policy makers - such as full employment, income redistribution and the efficiency with which resources are used. Major technological advances creates immediate victims but ultimately make life better for future generations. (Globe and Mail November 6, 1996)

Smaller company means bigger raise in '97: survey — The larger your company, the smaller the raise you are likely to get next year. Management and non-management salaries should increase by 2.7 and 2.5 per cent respectively in 1997, say Sobeco Ernst & Young consultants. Their nation-wide survey (based on medium-sized—between 250 and 1,000 employees— and small companies) is the second this fall to predict larger raises from smaller employers. The Conference Board of Canada (survey emphasized larger organizations) forecasted raises of 2.4 per cent for non-unionized staff and 2.1 per cent for union members in 1997, but said increases would average 2.6 per cent for companies with fewer than 500 employees. Sobeco also discovered that mid-sized companies anticipate increasing workers by 4.4 per cent, while large ones expect to cut personnel by 0.6 per cent next year. (Toronto Star November 8, 1996)

Yes , there really are jobs out there — However, the job market of today is very different. Employers can choose from a large pool of extremely well qualified applicants all eager to work. A large number of jobs available today require a high level of skill or are lower paid jobs in service related industries. Jobs that paid $50,000 annually five years ago are now being filled with equally or better qualified people at an average of $35,00 annually. Diligent research and networking will show you where the jobs are. Statistics show that less than 15 percent of jobs are advertised. Those who use a planned approach, maintain their mental health and a positive attitude, and don't give up will be successful. A well written cover letter and a skillfully prepared resume will get you interviews. Success may not come quickly and it probably will not be easy but you will succeed. (Sudbury Star November 9, 1996)

Interest rates fall as jobless rate rises — The 20th consecutive cut in the central bank rate followed a mixed report that more Canadians were working last month even though the jobless rate moved up to 10 per cent. Ambivalent consumer confidence was seen as a reason for both the higher unemployment rate and sluggish economic growth. Benny Tal, an economist with the CIBC, said consumers have held back because the quality of the jobs they are finding isn't good. They need stable, full-time and well-paying jobs to restore confidence. Finance Minister Paul Martin said the jobless rate rose to 10 per cent from 9.9 per cent in September because previously discouraged workers decided it was a good time to look for jobs. About 58,000 job-seekers joined the labour force in October, overwhelming the 42,000 jobs that were created. Lower interest rates put more money in the pockets of corporate leaders and they are starting to re-hire, he added. (Sudbury Star November 9, 1996)

Royal sees GDP rising 3% next year-The Royal Bank of Canada says Canada's gross domestic product will expand faster than that of any other member of the Group of Seven major industrial countries over the next two years , as the growth rate increases from 1.4% this year to 3% in 1997 and 3.5% in 1998. (Globe and Mail November 14, 1996)

Canadian retailers optimistic -Lower credit rates and falling mortgage payments are expected to induce retailers to open their wallets a little wider this year. David Brodie, a retail analyst with CIBC Wood Gundy, is predicting holiday sales to be about a 3.5% higher than last year despite the 1.4 million Canadians out of work. Although the unemployment rate rose up to 10% in October, 41,000 new jobs were created in the month and that is a positive development. (Sudbury Star November 14, 1996)

Federal government lowers UI premiums-Workers and corporations will pay less in premiums for unemployment insurance next year. Under changes to the system, companies hiring new workers will experience some relief in the amount they pay in premiums as a result of pressure imposed on the government now that the deficit is under control. (Sudbury Star November 20, 1996)

Canada not producing enough computer programmers to keep up with the demand- Canada is not producing enough computer programmers to keep up with the demand for their skills that is emerging from the rapidly growing core industries in the high-technology sector, according to Robert Fairholm, chief forecaster at DRI Canada Ltd. Although most young people can use a computer, only one-fifth of Canadians under 22 (the source of Canada's future workers) have advanced skills like computer programming. (Globe and Mail November 21, 1996)

Canadian students trail Asians, edge Germans and Americans in international competition-In an international comparison of achievement in mathematics and science, British Columbia and Alberta turned in strong showings, but Ontario was the weakest of the participating Canadian provinces. Singapore, Japan and South Korea were tops among 41 countries. Canada scored in the middle, just ahead of the United States and Germany. (Globe and Mail November 21, 1996)

Mining

Voisey's Bay raises the question: How will Sudbury mines compete?- Sudbury has reigned for a century as the nickel capital of the world accounting for about 11% of the world's total nickel supply. There is still an estimated 30-80 years of reserves left. The costs of mining this ore increase yearly as the mine must go deeper and deeper into the earth to retrieve the riches. Now, Voisy's Bay is on the scene and it is thought that it's reserves are equal to Sudbury's but more easily mined. Inco, largest employer in Sudbury and new owner of the rights to Voisey's Bay, believes the answer lies in robotics. Work is already under way on Sudbury's (and North America's) first fully robotics mine . It should be producing ore about the same time Voisey's Bay comes on line. In 1970, Inco had 20,700 employees. Today, there are 6,200, the result of mechanization. A Sudbury miner can earn between $85,000 to $100,000 a year in wages, overtime and bonuses. (Sudbury Star November 9, 1996)

Ontario cuts need for mining permits-Mining companies searching for minerals on Crown land in Ontario will no longer need permits for drilling, moving heavy equipment, blasting and stripping advises the Ministry of Natural Resources. The change will cut red tape, eliminate duplication areas such as zoning approvals, reduce the number of permits the ministry previously required and in the process save more than $1 million in unnecessary paperwork and staff time. Environmentalists warn that important safeguards are being removed from lands held in trust for all citizens. (Globe and Mail November 13, 1996)

Newfoundland gets smelter-Newfoundland's Argentia-Long Harbour region has been tabbed by Inco Ltd. as the site of it's new, $1 billion nickel smelter and refining complex. The selection will give a definite boost to the economy of southeastern Newfoundland. The project will process ore shipped from the Voisey's Bay mining venture in northeast Labrador. When completed in the year 2000, the smelter is expected to provide jobs for 750 people, processing about 122 million kilograms of nickel ore a year. (Sudbury Star November 29, 1996)

Construction

Valley developer plans 750 homes-Dominion Park Developments is seeking rezoning of two parcels of land in Valley East east of Highway 69 North. The developer plans to build 750 homes during the next 15-20 years. (Sudbury Star November 12, 1996)

Region approves Sudbury dump site-The existing Sudbury landfill is the preferred site for the region's new super dump. A regional committee has recommended a site north of Highway 17 East, and regional sanctioned the recommendation. The plan is to expand the Sudbury landfill to meet future disposal requirements for the next 20 years. It will be able to accept 130,000 tons a year versus it's current 77,000 ton capacity. (Sudbury Star November 15, 1996)

Transit terminal on schedule- Construction on the new $5.3 million transit terminal , located at Cedar and Young streets is proceeding on schedule. It is now 65% completed. The city is expected to take over the facility in March 1997. The facility has 6,000 square feet of public area that will include a ticket centre, newsstand, coffee kiosk and public washrooms. With a capacity of 18 buses, it is expected to handle as many as 12,000 passengers a day. (Sudbury Star November 22, 1996)

Although construction got off to a slow start this year, things have been taking an upswing over the last few months. As of October 1995, there were a total of 130 permits issued while the number issued as of October 1996, was 125. In 1995 the total value of permits was $117,357,454, whereas, the value of the permits issued in 1996 was $84,752,039. (Region of Sudbury Building Permit Statement)

New Businesses

Fairmount Shoes makes a return- After 34 years in business, Fairmount Shoes on Durham Street closed last spring, only to re-open it's doors Sept. 16, 1996. The former owners sighted boredom and interaction with customers as the main reasons for them re-opening their store. (Sudbury Star November 2, 1996)

Bryston's open on Barrydowne-Bryston's on the Park have opened in the old Cedar Hut on Barrydowne as Bryston's on Barrydowne offering a more family oriented atmosphere. For your sweet tooth, the restaurant boasts a pastry chef from Switzerland. (Sudbury Star November 16, 1996)

On the Downside

Separate board to close St. Aloysius School-The 125 students attending St. Aloysius School will be merged with students at St. David School on Jean Street when St. Aloysius closes in September 1997. While staff from St. Aloysius will be transferred to St. David's, there may be some staff reductions in the process. (Sudbury Star November 12, 1996)

Ontario to chop another $3 billion-Before the present Ontario government started the cuts, there were approximately 80,000 civil servants working for the province. About 6,000 jobs have been cut to date and it is anticipated that an additional 12,500 positions will be eliminated. (Globe and Mail November 21, 1996)

On the Brightside

Island welfare down; jobs up- Marcy Severin, the administrator of the Eastern Manitoulin General Welfare Office says there are fewer people on the Island this year in need of welfare. This year, the number of claims is down to 44 from 58 the previous year. (Manitoulin Expositor November 6, 1996)

Low rates good news for local real estate market-Every percentage point drop in interest rates means the monthly payment for a $100,000 mortgage amortized over 25 years drops by $60, says Canada Mortgage and Housing Corporation. An estimated 42% of renters in the first six months of this year could afford to buy a home, up from 34% in 1995. People in starter homes are also moving up into something bigger. The frenzy has reached a point where the typical home is sold in 81 days after listing. (Sudbury Star November 16, 1996)

A Message from the Human Resource Centre

We 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".

Send us your comments by e-mail.
© Sudbury Human Resource Centre (HRDC) 1997.

Copyright © 1998 Human Resources Development Canada
Last Updated - 23 February 98
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