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       Sudbury Labour Market Information Newsletter - September 1997 Prepared By Marilyn Prus, Northern Ontario Labour Market for September 1997 Labour force participation drops across Northern Ontario as students return to school Employment in Northwestern Ontario continues steady decline Goods-producing industries lead the way in job creation Northern Ontario Labour Market The start of a new school year is already having an impact on Northern Ontario's labour market. The students' return to school contributed to a labour force decline of 7,000, and the end of summer jobs led to a drop in employment of 3,000. The combination of these shifts resulted in a decrease in the unemployment rate from 9.8% to 9.1%. Employment in the goods-producing sector actually increased, albeit marginally, leaving the service-producing group of industries to sustain marked employment losses. Sudbury Labour Market Sudbury appears to have been immune to the changes occurring in Northeastern Ontario's labour market, as all of Sudbury's major indicators remained relatively stable. The seasonally adjusted unemployment rate dropped slightly to 8.5%, with the unadjusted rate virtually unchanged at 8.6%. Employment increased marginally in goods-producing industries such as Other Primary and Manufacturing. Service employment fell across all industries in the sector except for Community, Business and Personal Services. Thunder Bay Labour Market The bulk of Northwestern Ontario's employment losses appears to have occurred outside Thunder Bay, where the labour force decline was spread evenly between employed and unemployed. This drop in labour force participation -- from 66.0% to 63.9% -- resulted in a lower unemployment rate: 7.8% unadjusted, with the seasonally adjusted rate now at 8.4%. Employment was created in Other Primary and Construction, while the largest job loss was seen in the Community, Business and Personal Services group. Industrial Changes Across Northern Ontario, small employment gains were made in the goods sector with the exception of Construction. Losses were spread relatively evenly across the service sector. (Above analysis is provided by 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 In September 1997, there was a significant drop in the number of Employment Insurance claims from the previous month. This is a trend that is experienced by the economy every fall due to the seasonality of school related Employment Insurance claims. In other words, those people employed on a contractual basis (both directly and indirectly) by education return to the labour force in September. The decrease in the number of Employment Insurance claims from September 1996 to September 1997 is due primarily to the changes in E.L. legislation which has resulted in fewer individuals qualifying for E.I. benefits and the claims are of shorter duration. Bits and Pieces Ontario’s welfare rolls have dropped more than 16% since the Conservatives took power in 1995. Roughly 9,000 people left the welfare system in August. The province’s welfare caseload sits at 1.1 million people , which is 218,908 less than in June 1995. Strong consumer confidence, low interest rates, job growth, hefty incentive programs and pent-up demand spurred car sales to an 18% increase in August. This was the third largest percentage increase in 1997. It is expected that car sales in Canada will reach 1.36 million vehicles by the end ofd the car sale year which ends in a few weeks. Prime Minister Jean Chrétien announced a three year plan to hire 3,000 young people - many of whom haven’t been able to find jobs because they didn’t finish high school - as federal civil service interns. The $90 million Federal Public Sector Youth Internship Project begins in October with the hiring of 100 young people in pilot projects in Toronto, Halifax, Montreal, Edmonton and Vancouver. Mr. Chrétien challenged the chief executive officers - including the heads of IBM, the Royal Bank of Canada, the Bank of Nova Scotia, General Motors, General Electric, Molson Breweries, the Toronto Dominion Bank, Union Gas and Torstar to give young people a foot in the employment door. There are more than 663,000 young people unemployed in Canada. After the announcement above, Benny Tal, senior economist at the Canadian Imperial Bank of Commerce, said that in order to lower youth unemployment permanently, employers, educators, and government have to co-operate more in targeting what skills are in demand. He stated that in today’s economy of downsizing and government penny-pinching, a relevant education with real job skills are more important than ever. Klondike Casino, which has been operating roving charity casinos in Sudbury for 17 years and employs about 200 people has lost the bid to operate Sudbury’s new charity casino. CHC North Inc., a Thunder Bay company was award the license to own and operate charity casinos across Northern Ontario. earlier this year, Sudbury and Valley east city councils voted against allowing a casino within city limits. As yet, the location for the casino remains unknown. Despite a deep slump in the economy which lasted until 1995, Toronto’s population grew 9.5% during the 90’s to reach 4.26 million. After half a decade of restructuring, Toronto has accounted for one-third of the national employment gain over the last year. Major job losses in construction, media, education and government services were counterbalanced by employment gains in business services and wholesale and retail trade. According to an international survey conducted by Sydney-based consulting firm DDI Asia Pacific, which specializes in executive testing and selection, women make better bosses. Women are seen as more successful as bosses than men because they work harder, their feminine approach is better suited to the modern team-based approach, are more likely to encourage new ideas and ways of doing things and are better at praising their staff. The survey findings reflected the shift from the old authoritarian style toward a more supportive leader approach. The writer included this article in an attempt to show that old stereo-typical ideas about women in management positions may be changing. However, having had an opportunity to work for both genders, I found some men to use the "feminine" approach described above while some women proved to be more "authoritarian". According to Statistics Canada the number of temporary jobs has grown to include about 12% of Canadian employees. Studies done in 1989 and 1994 showed temporary employees at about 8 and 9 % respectively. No longer do people working in temporary employment fall into the stereotypical clerical category. They now run the gamut from civil servants to doctors. Adult education is a growing trend that is luring Canadians who want to improve their economic prospects. The numbers returning to school have more than tripled in the last 20 years. However, the unemployed are less likely to hit the books than the employed. According to Statistics Canada, the group least likely to return to school were older men who had dropped out of high school. The survey also indicated that provinces with higher unemployment rates ( excluding Newfoundland and Quebec), tend to have the lowest number of full time adult students. An extra $300 million in tax revenue and a $200 million reduction to the Ontario Teachers’ pension Fund has helped to reduce the provincial deficit. Government spending is down $1.9 billion from 1995-96 and is keeping Ontario on track to eliminate its deficit by 2000-2001. As many as 100,000 of the lowest paid women in Ontario’s public sector could enjoy raises after a judge ruled that the Harris government’s law repealing pay equity rules violates the Charter of Rights. the ruling would force the province to eventually pay another $418 million a year in salary top-ups. Equity is designed to compensate employees, usually women, whose work has been traditionally been under-valued compared to similar jobs held by men. Ontario youth are well below the national average in literacy. Ontario residents ages 16 to 25 scored the equivalent of 1 year of schooling below the national average according to data from a 1994 International Adult Literacy Survey. Disadvantaged youth had much lower scores. No analysis was done on the reasons for the poor showing. According to the above study, about half of the population of Northern Ontario falls into the functionally illiterate category. Regional economist Rick Lymer says the reason so many people fit this description is because, in the past, good-paying manual jobs in the forestry and mining sectors were available. Jobs today require more education than ever before due to the complexity of the work and the impact of technology. Statistics Canada reported about one-third of Canada’s workforce is unionized, 3.5 million workers. That’s down from a peak of 3.8 million in 1990. there are 400,000 fewer males in the labour movement since 1989 which is a reflection of the disappearance of so many full-time, high paying jobs. As a result, the focus of union recruitment has also changed. They are now recruiting the lowly paid service-sector worker who is usually part-time, female or young. While the average Canadian received no pay increase in 1996, chief executive officers of Canada’s biggest companies pulled in an average wage increase of 11%. According to a new study by two University of British Columbia economists, the earning power of Canadian men has been deteriorating for decades, no matter what their level of education. However, university graduates can still expect to earn much higher incomes over their lifetimes than those who merely finish high school. Women have fared better, earning as much as their predecessors. Mining Inco’s Voisey’s Bay project is expected to be delayed by at least a year until an environmental review is completed. Inco chairman Mike Sopko announced that production wouldn’t begin before the year 2000. The project could be stalled for decades by market factors if it not able to get up and running in the next few years. The $6 billion project is expected to create 7,000 direct and indirect jobs by the time the smelter and refinery are in operation. As a result of the delays, Inco is considering scaling back the project ( which was expected to produce 1500 jobs) by 50%. As a result of the delay in the Voisey’s Bay development, Inco is seeking to increase nickel production in Sudbury as well as other parts of the world. The company says those gains won’t come close offsetting the loss of production at the huge Labrador deposit. Production in Sudbury, however, can only be increased marginally due to stringent environmental regulations. Construction New housing starts were down in August and according to Paul Prosperi, market analyst with Canada Mortgage and Housing , this is due primarily to the glut of resale homes on the market. Construction started on 31 homes last month compared to 49 during August 1996. He also stated that the public’s perception of the economy could be shaking their confidence. A 10 year project water treatment costing $11 million was officially opened in Espanola on August 28, 1997. Mike Doyle’s Gardner motors on Elm Street and it’s used car division are expected to be in one location near Remington Drive on Hwy 69 by next spring. Construction on the new 3.5 acre site has started and is expected to be completed by March 1, 1997. The final cost of the structure is close to $4 million. Tenders have gone out for renovations to the Espanola General Hospital. Construction is expected to begin in October. Estimates for the renovations were between $450,000 to $600,000. In an effort to rejuvenate the downtown core, city council voted unanimously to suspend a $1000 fee for developers for each home, apartment or housing unit they create. The suspension will be in effect for 6 months in an effort to encourage developers to convert vacant commercial and office space in the downtown to housing units. Lay-Offs and Re-engineering The Canadian Imperial Bank of Commerce branch on the corner of Elm and Elgin closed it’s doors and 9 of the 11 staff were merged into the branch on Cedar Street. The 2 staff not absorbed by the Cedar Street branch are expected are expected to take severance packages r be offered retraining. On the Down Side Interest rates are expected to increase several times over the next year, according to the Bank of Canada. The increases are expected to be gradual and not large enough to discourage consumers and businesses. Labour Disputes and Unrest Unionized staff at Sudbury radio stations CHNO, CHYC, and CJMX, all owned by Palmorex Broadcasting, have voted in favour of strike action. to back contract demands. The main issue for the 11 full-time and 6 part-time workers is job security. They will be in a legal strike position as of October. Teachers’ unions are threatening a province-wide strike over new education legislation and other public-sector unions have pledged to walk with them. More than 3,000 public-sector workers in the Sudbury area could be affected if strike action is called. New provincial legislation would allow the government to control their working conditions and gut collective agreements. In Sudbury, 87.3% of CUPE members voted in favour of a strike. The public-sector workers are enraged over the contents of Bill 136 which, among other things, limits union members right to strike during the restructuring process for school boards and hospitals. Postal workers are seeking the right to strike after talks broke down early in September. It is anticipated that the strike will be short-lived as the government is expected to introduce back-to-work legislation. On the Bright Side A Toronto bankruptcy judge has approved Eaton’s $420 restructuring plan which means that the retail outlet in the City Centre will remain open. Employees and management in the downtown location can now breath a sigh of relief over the future of their jobs. The City Centre Mall is on the rebound. An aggressive new marketing campaign, major renovations, an improving economy, special events such as the King Tut exhibit, the survival of Eaton’s, and an improved working relationship between the mall management and retail outlets have been contributing factors. Although traffic in the mall has increased substantially, shoppers are still concerned by the paid parking facilities. The impact to the Sudbury economy of the Cinefest ’97 is expected to be $2.3 million. The budget to run the film festival is about $520,000 per year and to date it has always been a money-making proposition. FedNor has agreed to contribute $148,000 to support a radio, television and print advertising campaign, as well as development costs for promotional material and tour package information. The intent is to support an aggressive advertising campaign to further develop the festival as a tourism event. Toronto-Dominion Bank’s chief economist is predicting that by the year 2000, the Canadian economy will produce 1 million new jobs. Almost 400,000 new jobs are expected to be created by the end of this year, and another 300,000 are expected in both 1998 and 1999. This job creation is expected to push the jobless rate to below 9%. The TD Bank said the only major risks to it’s forecast are that the US economy will stumble or Quebec will separate. The Canadian Armed Forces is recruiting between 4,000 to 5,000 recruits this year to cover normal attrition and reorganization. The basic requirements for a recruit is that the person be a Canadian citizen, 17 years of age with a grade 10 or equivalent level of education. Efforts are being taken to encourage women, aboriginals and visible minorities to apply. The Federation of Northern Ontario Municipalities which represents about 100 Northern municipalities, plans to set up a task force to help steer the course of economic development in the north. The FONOM task force is expected to take shape after the November municipal elections in November. The prime thrust of the group will be to assist economic development and diversification in the north. In order to establish this region as an important telecommunications centre, a $7 million hi-tech network system needed. Support for this project has come from AT and T, major equipment supplier CISCO Systems and Sudbury Hydro, as well as 20 local businesses and public-sector agencies. The SuReNet ( Sudbury Regional Network ) project would feature ATM ( Asynchronous Transfer Mode ) switching and a fibre optics cable system. Community leaders have applied to the Ontario Ministry of Economic Development to cover a $2 million share of the cost. $200,000 in funding from FedNor’s Community Futures Program has been allocated for the 1997/98 operating year to the Lacloche Manitoulin Business Corporation ( LAMBAC ). the funding will allow LAMBAC to continue it’s work in strengthening the local economy and creating jobs. LAMBAC will deliver FedNor’s Business Planning Initiative throughout it’s geographic service area. repayable loans of up to $5000 will be provided to small businesses to assist in the completion of a business plan. The $500,000 Youth Internship Program has been launched by FedNor. Under the program, young college and university graduates will be offered employment for up to 12 months. twenty positions will be created in the non-profit field in such areas as community economic development, market research, and the development and commercialization of new technologies. The land-reclamation program celebrated it’s twentieth year this year and it’s 3 millionth tree was planted. In the past decade, various levels of government, educational institutions, business, industry and other groups have mobilized to re-green thousands of hectares of acidic, barren land devastated by decades of logging and mining activity. This year alone, the non-profit Tree Canada Foundation, in partnership with TransCanada Pipelines Ltd., has provided 600,000 tree seedlings in the region this year. New Businesses and Expansions The Grotto, a bar offering alternative rock, has opened in the basement of the Frood Hotel on Kathleen Street. A Guelph-based company, Armtek Inc., is planning to build a plant in the Walden Industrial Park to manufacture galvanized culverts. The plant intends to hire 8 full-time and 4 part-time employees. N.I.M. Disposals has been busy with expansions. Over the past year the company opened an on-site multi-use recycling plant that allows direct handling of recyclables such as glass, cans, bottles, plastic, paper and cardboard. More recently the company developed an on-site containerized composting facility that can help divert waste from local landfill sites. In May of this year Thorburn House , a Bed and Breakfast establishment opened in Gore Bay. It is operational from May until September. A new bakery products outlet opened recently on Falconbridge Road. Aunt May’s Bakery, a North Bay company in operation since 1924, opened a thrift shop to sell a wide range of bakery products. Sudbury’s Children’s Aid Society is adding 7 front line staff to it’s roster due to increasing work loads, inadequate staffing and poor morale. Precious People, a clothing store for children’s brand name clothes, opened in the Bonaventure Mall in Chelmsford. Proactive Emergency Response Systems is a consulting firm specializing in helping municipalities to upgrade or revise their emergency response plans. This new company can also prepare mock exercises to test the plan. Computers Plus, a computer sales and service operation is expanding to Timmins and will employ 3 people. The company has been in the Sudbury area since 1991. Savory House opened in the Southside Business Centre on Regent Street in September. It offers a variety of specialty foods including Cornish pasties, pancake rolls, chicken balls, rice and curry. For the nature lover, Backyard Birder and Nature Shop opened its doors 1 kilometre from the Four Corners. Seeds and feeders, books, educational kits, audio-visual items, T-shirts and a whole lot more can be purchased. As a result of a partnership between Network North and the Town of Valley East, a mental health clinic will soon be operational out of the Recreation Centre. The clinic will provide bilingual assessment, referral and counselling services. A psychiatrist will be on site one day per month. Highlights From HRCC Sudbury The Human Resource Centre for Students in the Espanola Mall, closed at the end of August. Statistics indicated a 21% increase in vacancies over the previous year. The Wasse Abin Learning Centre in Wikwemikong received a $150,000 grant from Human Resources Development Canada’s Transitional Job Fund. As a result, 40 construction jobs and 13 permanent jobs were created to staff the school. 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). Yours in Partnership, Marilyn Prus Copyright © 1998
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