Oil industry woes striking hard at Newfoundland economy: analyst

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

  • PepsiCo makes biggest public pre-order of Tesla Semis: 100 trucks

    Economic CBC News
    PepsiCo Inc. has reserved 100 of Tesla Inc.'s new electric Semi trucks, the largest known order of the big rig, as the maker of Mountain Dew soda and Doritos chips seeks to reduce fuel costs and fleet emissions, a company executive said on Tuesday. Source
  • MTY Food Group signs deal to buy Imvescor Restaurant Group for $248 million

    Economic CBC News
    MTY Food Group Inc. is growing beyond the shopping mall food court with a $248-million stock-and-cash deal to buy Imvescor Restaurant Group Inc. and its full-service restaurant and grocery products businesses. The friendly deal will bring together such MTY banners as Thai Express, Vanellis and Manchu Wok with Imvescor's Baton Rouge, Pizza Delight and Scores restaurants to create a company with a portfolio of over 5,700 stores under 75 brands. Source
  • Iceland closes gender gap but violence against women remains

    Economic CTV News
    REYKJAVIK, Iceland -- For nine years in a row, the World Economic Forum has ranked Iceland as having the world's smallest gender-equality gap, and for about as long gender studies professor Gyda Margret Petursdottir has been asked how the Nordic island nation became such a paradise for women. Source
  • Lyft ride-hailing app arrives in Toronto, marking its first expansion outside U.S.

    Economic CTV News
    TORONTO -- Ride-hailing service Lyft will be available in Toronto starting today. Torontonians can download the Lyft app to being ordering rides in the city. The company's arrival in Toronto marks the first time it has expanded outside the US. Source
  • Bombardier signs deal to sell Aventra trains in U.K.

    Economic CTV News
    BERLIN - Bombardier Transportation (TSX:BBD.B) has signed a deal to supply 333 new rail cars, along with a contract for maintenance work, with a U.K. rail company. Corelink Rail Infrastructure and West Midlands Trains will receive 333 new Bombardier Aventra vehicles for use on the United Kingdom's West Midlands Trains franchise. Source
  • Ride-hailing service Lyft expands outside U.S. for 1st time to take on Uber in Canada

    Economic CBC News
    Starting today, Torontonians will have another option to get around the city. Lyft has launched outside the U.S. for the first time, putting pressure on Uber for a share of the ride-hailing market. Other Canadian cities are in Lyft's sight as the company, Uber's main rival in the U.S. Source
  • Cost of child care up by 20% in some cities since 2014, report finds

    Economic CBC News
    The cost of child care is rising quickly in Canada, in some cities increasing by as much as 20 per cent from three years ago and more than 10 per cent in most of Canada. Source
  • Toronto leads country in child-care fees, but costs rising almost everywhere

    Economic CBC News
    The cost of child care is rising quickly in Canada, in some cities increasing by as much as 20 per cent from three years ago and more than 10 per cent in most of Canada. Source
  • World shares retreat ahead of Fed interest rate decision

    Economic CTV News
    TOKYO -- Shares were mostly lower in Europe and Asia on Tuesday as investors retreated ahead of the Federal Reserve's decision on interest rates. KEEPING SCORE: Germany's DAX fell 0.2 per cent to 13,099.40 and the CAC 40 of France lost 0.5 per cent to 5,362.83. Source
  • Health care and materials lead the way on Toronto market, loonie lower

    Economic CTV News
    TORONTO -- The health care and materials sectors helped boost Canada's main stock index in late-morning trading as the loonie lost ground. The S&P/TSX composite index was up 24.83 points to 16,128.34, after 90 minutes of trading. Source