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       Sudbury Labour Market Information Newsletter - November 1997 Prepared By Marilyn Prus, Unemployment Statistics
Northern Ontario Labour Market for November 1997 Highlights: · Labour market conditions continued to weaken across Northern Ontario, with the Sudbury CMA again the singular exception · The largest job losses occurred in Community, Business and Personal Services industries · Job seekers continued their seasonal exodus from the labour market at a dramatic pace, causing labour force participation rates to continue their downward spiral · Ontario's unemployment rate dropped slightly as job seekers left the labour market; the seasonally adjusted provincial rate was unchanged · Canada's seasonally adjusted unemployment rate remained at 9.0% Northern Ontario Labour Market: Labour market activity in Northern Ontario continues to be characterized by significant withdrawals from the labour market. 8,000 people dropped out of the labour force in November, pushing the participation rate down to 58.0% from 59.3% in October. While 7,000 jobs disappeared from the Northern Ontario labour market, the number of unemployed also fell. Consequently, the unemployment rate fell minimally, to 9.3%. Sudbury Labour Market: The labour market in Sudbury again emerged unscathed from the Region's declining fortunes. Employment held firm at 80,000, with new jobs in service-producing industries offsetting declines in goods-producing industries. A small withdrawal from the labour force caused a decline in the unemployment rate, down to 8.7% from 9.1% in October. Industrial Changes: Forty-five hundred jobs were lost in the service-producing industries of Northern Ontario in November. Of these, the largest number of jobs disappeared from the Community, Business and Personal Services group (2,700) while an additional 900 jobs were lost from Transportation, Communications and Utilities. The goods-producing sector also contributed to the employment decline with a total job loss of 2,800. Eight hundred of these jobs were lost in the Construction industry. ___________________________ Carrie Vescio A/Northern Area Economist Economic Analysis & Information Directorate Strategic Planning & External Relations (807) 346-2046; fax (807) 346-2132 Employment Insurance Claims
(Figures are from the Established Claims Analysis Report and represent regular claims only. Regular claims are those claims that were established as a result of work shortages or where the claimant left employment for justifiable reasons). Analysis of Above Data
Bits and Pieces The Canadian Nurses Association has released a report that indicates that as many as 113,000 nurses may be in demand by the year 2001. Although the nurses acknowledged that the warning may sound bizarre in light of the cuts to the health care system, there is a glut of nurses heading for retirement at the turn of the century that will create the shortage. Fewer people are entering the profession today given the present policies regarding health care. Statistics Canada has predicted that the population will increase by 23% by the year 2001 and the population as a whole is aging and more likely to need health care. The University of Toronto’s Institute for Human Development released the results of a recent survey that showed large companies no longer feel they have an obligation to take of their employees until retirement. In fact, companies state that laying off older workers is one of their main cost cutting measures - and the feel no responsibility to help them find another job. The report, funded by Human Resources Development Canada, discovered that the majority of employers felt no obligation to provide their employees with job security and less than one in five said they help displaced older workers find another job. The Canadian Armed Forces will begin a $1.53 million marketing campaign in January 1998 in an effort to recruit 500 women for combat jobs. The Canadian Human Rights Commission has imposed a deadline of February, 1999, but the Armed Forces hopes to have the women on stream before the end of March, 1998. The Internet has become a useful job-search tool. Not only can you find job listings more quickly than flipping through the want ads, it can also be used as a vehicle to update your resume, network with old contacts, create new contacts as well as research prospective employers. You can also apply for positions electronically. (See Websites Worth Visiting below for a list) Statistics Canada’s figures show that Canada’s help-wanted index rose 2% points in October to its highest level in almost seven years. The report matched economists expectations. Statistics Canada’s index serves as an early indicator of changes in labour demand by monitoring help-wanted ads published in newspapers in 20 major cities. Most Canadians can read and write but more than 40% don’t have the literacy skills needed to function effectively at work or at home, says an international survey. However, Canada ranked first among English speaking countries participating in the survey, ahead of the United States, Britain, Australia and New Zealand. The survey was conducted by Statistics Canada. Christmas is almost upon us and a new survey suggests that shoppers may be ready to spend a little more this Christmas, but not recklessly. Consumer PulseCheck, a new consumer survey commissioned by AMEX and the Retail Council of Canada, found that despite improved earnings and a greater sense of job security, the average family shopper is planning on spending only a little more on Christmas gifts than last year. Consumers are skeptical, cautious and demanding- they think they have a right to good merchandise and good deals. The Canadian economy is surging ahead, and one of the fuels driving this prosperity is high technology. This sector is growing so rapidly that it is struggling to find qualified workers. From semiconductors, biosciences and aerospace to fibreoptics, microelectronics and lasers, the high-tech sector is smoking. In June, Northern Telecom announced plans to expand its Ottawa operations and promised to create 5,000 new jobs for "knowledge worker" over 4 years to meet global demand for its telecommunication products. It is also planning on hiring 1,000 new employees in Montreal to meet orders for its optical works. these are just a couple of examples of the hiring taking place in the telecommunications industry. Canadian workers’ average weekly earnings rose 1.9% to $598.01 in September from the previous year. The largest year-over-year increase in earnings was an 8.9% gain for those working in real estate and insurance agencies. Workers in financial services gained 5.4% . The largest increases in payroll employment were in logging, forestry and business services, says Statistics Canada. Mining Inco stocks have plummeted as the low price of nickel has dragged down profits for the company. There are no signs of nickel prices rebounding on the world market. Last month Inco reported profits of $5 million US for the period ending September 30, 1997. During the same period a year ago, Inco earned $29 million US Inco is cutting its Ontario work force due to the low price of nickel. This means a reduction of 500 jobs in Ontario. Also, any mines in Ontario and Manitoba that are not churning out a profit next year will be phased out or shut down. The bulk of the job cuts represent an "accelerated" version of the original plan to reduce its labour force by 1,000 in both Sudbury and Thompson, Manitoba, over five years. The job cuts are expected to save Inco $40 million in annual savings. Inco Limited has announced that it will be closing four mines - three in Sudbury. The Levack, McCreedy West and Little Stobie mines will be closed. Shedandowan in Thunder bay will also be axed. Employment levels in Sudbury will be reduced by 500 through attrition. In their downsizing initiative, Inco has made it clear that the company will not be offering any retirement incentives as there are more than 500 workers who are eligible to retire with full pensions. Workers are eligible for full pension after 30 years of service. Inco stock prices have dropped so severely that the company is now worth less than the 44.3 billion it paid for Voisey’s Bay. New home construction remained low in October. Statistics released by Canada Mortgage and Housing showed only 30 new homes started last month compared to 39 for the same period last year. Single-family homes have accounted for the vast majority of new construction activity so far this year. The large number of homes on the resale market is keeping new home construction low. Laurentian Child and Family Centre and La Garderie Touche-a-tout child care centres will soon have a new home as construction on a $1.4 million building to house the centres has started. The building is expected to be completed by September, 1998 on the Laurentian University property adjacent to the Alphonse Raymond Building. The two centre accommodate approximately 132 children. Lay-Offs and Re-engineering E.B. eddy Forest Products Limited announced that they were reducing their labour force at the Nairn Centre operation. The company is reducing a shift in the Planner Mill effective November 15. Forty employees have received their lay-off notices. Severance packages as well as early retirement incentives will be offered to the affected employees. On the Down Side The sales of existing homes in Sudbury dropped 32.2% during the month of October, according to the Canadian Real Estate Association. The average price of a home in Sudbury in October was $100,248. Canada Mortgage and Housing reported that rental vacancy rates in October for Sudbury jumped to 7.2%. just a year ago, rates were at 6.8%. Science North is closing its community science centre in Thunder Bay due to declining attendance and financial constraints. Sudbury Regional Hospital officials are about mid-way through negotiations on the future of local employees in the restructured, one-hospital system. Unions fear several hundred employees will lose their jobs in the process. The impact of downsizing has yet to be determined. The uncertainty remains a constant source of anxiety for hospital workers. Under the restructuring initiative, Laurentian Hospital will double in size. The target date for completion of the reconstruction, March, 1999, does not appear realistic at this time. The new hospital will not be completed until 2000 or 2001. Labour Disputes and Unrest Teachers in Sudbury and across the province, except for Espanola, voluntarily returned to work after a 10 day protest but continue to promote their cause through media advertising. The Espanola Board of Education felt that teachers in their area needed a day to cool down. Their protest concerns Bill 160 which the teachers say will erode the educational system by removing 10,000 teachers from the classrooms in Ontario. The provincial government, on the other hand, continues their media blitz by stating that the Bill will limit classroom size and limit preparation time for teachers and ensuring that they have more instructional time in the classroom. While negotiations continue between Canada Post and the letter carriers, the Sudbury workers walked off the job a couple of days ahead of the rest of the country. Issues centre around increased work loads for the carriers. Locally, union members objected to the new expanded routes that would eliminate 13 of the 69 jobs. Workers state they are not on strike and offered to deliver the mail according to their previous routes. Canada Post refused to waiver from the restructured routes. It is expected that the strike will be short-lived. By the end of the first week, talks had slowed significantly and an earlier projection of an early end to the strike seemed to be fading. Into week two of the strike, talks bogged down over ways in which the mail is delivered. Under an agreement between the federal government, Canada Post and the Canadian Union of Postal Workers, striking postal workers will leave the picket lines to deliver federal government and welfare cheques. No other mail will be delivered. A mediator had been appointed to deal with the postal strike, but talks broke down. As was expected, the government passed legislation ordering the strikers back to work. They were warned against any civil disobedience. Seventeen workers from Pelmorex Broadcasting are in their fourth week of picketing. Job security is the key issue for the strikers. Pelmorex insists that they cannot afford union demands as it has recorded losses in excess of $6 million in eight years since taking over the Sudbury operation. In an attempt to break the impasse, the union has filed a complaint with the CLRB (Canadian Labour Relations Board) stating that the company is bargaining in bad faith. City Council voted unanimously to request Pelmorex to appear before council to explain why it has abandoned its commitment to maintain and expand its local workforce. When Pelmorex took over the local radio stations, there were 58 full-time positions and now there are only 17 positions (11 full-time and 6 part-time). Pelmorex promised the CRTC, Sudbury city council, regional council and the Sudbury Regional Development Corporation that programming would be expanded and more people hired in Sudbury. Ron Mitchell, executive vice-president of Pelmorex responded to the criticism by city councilors by stating that it is not within the mandate of the local government to comment or castigate the company on how it runs its operation. He also commented that the company had to take drastic measures when , during the deepest recession this country has seen since 1929, it lost &6.7 million. On the Bright Side The Sudbury Regional Development Corporation (SRDC) has been asked by city councilors to investigate the feasibility of attracting an ethyl alcohol plant similar to the Sunthetic Corporation operation that considered locating in Sudbury several years ago. Changing market conditions, a restructured Ontario Hydro and major problems with nuclear power plants, may now make such an enterprise viable, and creating many needed jobs in the community. SRDC manager cautioned Sudburians not to get hopes up too high as the investigation is only a preliminary measure. Adanac Windows & Doors took advantage of the Business Development Banks of Canada’s ISO certification assistance program to become the first company of its size to achieve this certification. The ISO 9000 designation is an internationally-recognized series of quality control systems, standards and guidelines that certify the consistency of the way an organization produces and delivers its products and services. This certification will help Adanac to better compete on the international market. Adanac’s sister company, Nova Seal Windows and Doors is now selling Sudbury-made windows in Croatia. The two companies are exploring business opportunities in China and Japan. Northern Development and Mines announced that the Region of Sudbury and the City of Sudbury can expect almost $1.5 million in funding to be spent on upgrading roads. The funds are from the Canada/Ontario Infrastructure Works program. A boat manufacturing company from Southern Ontario, Grew Boats, has contacted the Manitoulin East Municipal Airport Commission indicating an interest in a partnership to open a manufacturing facility on airport property. In the deal, the three municipalities, Little Current, Howland and Assiginack would become a partner in equity through the use of the land and thereby be eligible to apply for about $2.5 million in grants from agencies like FedNor and the Northern Ontario Heritage Fund. The partnership is in the very early stages of negotiations. Regional council’s planning and development committee approved the rezoning of land on the north side of the Kingsway from "future development" to "light industrial service commercial" to allow Canadian Shopping Centre Inc. to develop a fast-food restaurant, a gas bar, and build a 136,000 square foot building (the use of which will be determined at a later date).This is part of a large scale development plan that the company has for the property and is the second phase of the development. The first phase which was previously approved by the committee, is to bring in a warehouse-style retail outlet. Developer Gil Gasparini, whose adjacent land was also zoned for a warehouse retailer, opposed the rezoning as he did not want this action to jeopardize present negotiations. The Canadian Tire store at the south end of the city has received approval from regional council’s planning and development committee to add a warehouse section at the rear of the store. This will centralize the store’s warehouse operations which are currently housed in other locations throughout the city. The Ontario Centre for Environment Technology Advancement (OCETA) will receive $50,000 from FedNor. Oceta is a non-profit organization that helps smaller businesses commercialize new environmental technologies. The money will be used to bring a senior consultant to northern communities for one week every month. The Walden Sno-Runners snowmobile club is one of 29 community clubs which will share in $581,400 in snowmobile trail development grants in the province. Elk are being re-introduced into the area and are expected to be on the big-game list for Northern Ontario within the next few years. the Ministry of Natural Resources are introducing 550 animals over the next five years. The elks herds have been eliminated twice: once due to over hunting and secondly over ill-founded concerns over parasites. New Businesses and Expansions Shkagamik-Kwe Health Centre opened at 105 Elm Street. the centre offers a combination of western and traditional native healing practices. Promotion of healthy lifestyles is also a part of the facility. A part-time physician, a nurse practitioner and a community health nurse are on staff. Home visits are made to families with newborns and people who cannot come to the facility for treatment. The Holistic Centre, massage techniques accompanied by the smells of pure oils, has opened on Larch Street. Full body massages, reiki (a universal energy channeled from one person to another) and aromatherapy workshops are offered at the centre. Bi-Way opened in November in downtown Espanola. The new store will employ 20 - 25 part-time workers. Over 750 applicants applied for the jobs. Extreme Pizza, a pizza business geared to people in their teens and up to 34 opened on Douglas Street. They specialize in small and medium-sized pizzas. Hair Central, a hairstyling establishment targeting seniors and youth opened in the former Woolworth building on the corner of Elm and Durham. Seniors and students get a 10% discount. There is ground floor accessibility. A staff of four work on the premises from Monday to Saturday. The Blue Water Country Store and Restaurant opened in Manitowaning offering a convenience store, a 24 seat restaurant and ice cream bar. Golder Associates and Golder Paste Technology Ltd., an engineering firm specializing in earth sciences has moved to Falconbridge Road. During the past five years the company has grown from a small operation run out of a house to 26 employees, the majority of which are locals. Websites Worth Visiting http://ngr.schoolnet.ca. Young Canadians, students and recent graduates can now use Industry Canada’s Internet employment database, the National Graduate Register ( NGR ), to apply to several youth employment and internship opportunities under the federal government Youth Employment Strategy. These programs represent over 9,000 job and internship opportunities for young job seekers. It can also be used to input your resume, free of charge. Any questions about the National Graduate Register and the Youth Employment Strategy can be directed to 1-800-964-7763. http://www.workinfonet.ca Canada WorkInfoNet is a listing and description of hundreds of Canadian job-related web sites. Helpful Tip: You can access the National Graduate Register and the Electronic Labour Exchange from this site. http://www.worldchat.com/public/stcharle/jobform.html Online Classifieds can link up you with the want ads in at least 21 Canadian newspapers at a time. http://www.careermosaic.com CareerMosaic is a scan of job opportunities in places like Asia, Australia, France, the United Kingdom and other destinations. There are also North American postings, but the majority of these are high tech. http://www.hrdc-drhc.gc.ca/hrdc/corp/stratpol This site houses a newly released document of the 1995 Follow-up Survey of 1990 Graduates from "Applied Research". http://www.hitechcareer.com For techies only, attend a Career Fair, where dozens of employers are in one place and prepared to hire on the spot. http://www1.sympatico.ca/Contents/Business/Careers/workplace/jobquest/guide.com A web guide has been created by Swartz for Sympatico with more job hunting sites. Highlights From HRCC Sudbury The Sudbury and Manitoulin Training and Adjustment Board was launched early in November. The board is the result of a partnership between the federal and provincial government. Human Resources Development Canada and the Ministry of Education and Training are equally funding this initiative. The primary role and responsibility of the Local Board is to advise both levels of government on the training needs of the community. 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. Contributions to the "Community Corner" are always welcome. I can be reached at: (705) 670-6674 (phone) or (705) 670-6727 (fax). Copyright © 1998
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