Oil industry woes striking hard at Newfoundland economy

Low oil prices and job losses in Alberta are driving economic woes in Newfoundland and Labrador as well, as the eastern province spirals deeper into debt.

See Full Article

Many Newfoundlanders who left the province to work in the Alberta oil patch are coming back due to job losses out West, while those working Newfoundland's offshore oil rigs are also facing employment challenges. The latest job numbers from Statistics Canada show a 14.4 per cent unemployment rate in the province, and a provincial debt that has ballooned to $1.9 billion.

Craig Alexander, vice-president of economic analysis for the C.D. Howe Institute, says the province will eventually transition to relying on other industries for jobs, but it could use some assistance from the federal government in making that difficult change.

"You have to help that transition," Alexander told CTV's Canada AM on Monday. "Newfoundland's a relatively small economy, but we should pay attention to the weakness that's happening there."

He added that the province needs to focus on cutting its deficit, which continues to grow as oil prices fall.

"If the provincial government needs to focus on reducing its deficit, then there's a rationale for the federal government to provide some additional support," Alexander said.

He said skills training will be essential going forward, as unemployed oil workers learn to work in new fields.

In the meantime, Alexander said the federal government should look into extending employment insurance benefits, to give workers more time to retool their skills. "Let workers that are displaced collect benefits for a longer period of time, because it may take a little while for workers that are displaced to get re-employed in other industries," he said. "And there will be industries in Canada that will be growing."



Advertisements

Latest Economic News

  • Volkswagen ordered to pay $2.1B in class-action suit over emissions scandal

    Economic CBC News
    Members of a Canadian class-action lawsuit against Volkswagen can submit claims for reimbursement starting on Friday after an Ontario court approved a $2.1-billion settlement plan. The 105,000 people who purchased or leased certain Volkswagen or Audi vehicles with two-litre diesel engines that were caught up in an emissions cheating scandal will each receive a payment between $5,100 and $8,000, wrote Superior Court Justice Edward Belobaba in his judgment Wednesday. Source
  • Bombardier rejects Boeing claim CSeries was dumped into the U.S. at below cost

    Economic CTV News
    MONTREAL -- Bombardier and the federal government have rejected Boeing's claim in a complaint filed with the U.S. government that its Canadian rival has dumped its new CSeries commercial jet into the United States at below cost. Source
  • Boeing seeks U.S. anti-dumping probe against Bombardier CSeries jet

    Economic CBC News
    Boeing Co. said on Thursday it had asked the U.S. Commerce Department for an investigation into alleged subsidies and unfair pricing for Canadian planemaker Bombardier's CSeries airplane. The request for anti-dumping measures was also addressed to the U.S. Source
  • Shaw Communications reports outage of internet, TV and phone services

    Economic CBC News
    Shaw Communications Inc. says customers were hit by an outage to its internet, television and home phone services on Thursday. Company support services said in a 1:20 p.m. PT posting on a website that technicians were working on the problem. Source
  • Shaw internet, TV and phone service outage fixed

    Economic CBC News
    Shaw Communications Inc. says customers were hit by an outage to its internet, television and home phone services on Thursday. Company support services said in a 1:20 p.m. PT posting on a website that technicians were working on the problem. Source
  • Canam stock nearly doubles on going-private offer for Quebec-based company

    Economic CTV News
    MONTREAL -- Canam Group is preparing to end its 33-year run as a public company after partnering with a U.S. company and Quebec investors to take the structural steel specialist private. After a few years of reflection, the leadership of the company founded in 1960 concluded that the constraints of being public not longer fit with its vision. Source
  • United Airlines reaches undisclosed settlement with passenger dragged from plane

    Economic CBC News
    A Kentucky doctor who was dragged off a United Airlines flight after he refused to give up his seat to crew members has reached a settlement with the airline for an undisclosed amount. David Dao's legal team announced the settlement Thursday in a brief statement. Source
  • Employers can pay women less based on past salaries, U.S. court rules

    Economic CTV News
    SAN FRANCISCO -- A federal appeals court says employers can legally pay women less than men for the same work based on differences in the employees' previous salaries. The decision by the 9th U.S. Source
  • BlackBerry smartphone with physical keyboard will be sold in Canada next month

    Economic CTV News
    TORONTO - Canadians will be able to buy a new BlackBerry-branded smartphone with a physical keyboard starting next month. The KEYone, a phone made in partnership between TCL Communication Technology Holdings Ltd. (TCT) and BlackBerry (TSX:BB), will be available for pre-order at some partners as of May 18. Source
  • Southwest Airlines to end practice of overbooking flights

    Economic CBC News
    Southwest Airlines says it plans to stop overbooking flights — an industry practice implicated in an ugly incident on a United Airlines flight that has damaged United's reputation with the flying public. Last year Southwest bumped 15,000 passengers off flights, more than any other U.S. Source