Published Saturday January 8th, 2011
A1 By STEPHEN LLEWELLYN
llewellyn.stephen@dailygleaner.com
Fredericton's unemployment rate fell 0.2 percentage points to 5.5 per cent in December, according to the latest data from Statistics Canada released Friday.
That's down from 5.7 per cent in November but up from 4.7 per cent in December 2009.
Fredericton's unemployment rate trended upward through the first half of 2009 until it peaked in August at 5.9 per cent.
Then it fell to 5.7 per cent in September and stayed there for October and November.
Coun. Stephen Chase, chairman of Fredericton's development committee, said Friday the December result is welcome news.
"Clearly, the employment situation is improving and perhaps that is reflective of the solid growth pattern the city and region has demonstrated," he said.
"I think we still have some work to do in concert with the province in making sure that we are able to attract good talent to the city and be able to retain the talent pool that we do have."
He said he has some concerns about 2011 as the province talks about deficit reduction, which might translate into cuts to the capital's civil service.
"Salary represents the biggest chunk of their expenditures," Chase said about the province.
"That has to be a concern to the city of Fredericton."
He said civil servants are still an important part of the city's economy.
"When you put employees on edge, they stop spending," said Chase.
Fredericton continues to have the lowest unemployment rate amongst the province's three main centres.
Moncton's unemployment rate in December was 7.3 per cent, up from seven per cent in November.
Moncton's unemployment rate in December 2009 was 5.5 per cent.
Saint John's unemployment rate in December was 6.3 per cent, down from seven per cent in November.
The port city's unemployment rate in December 2009 was 6.7 per cent.
Susan Holt, CEO of the Fredericton Chamber of Commerce, said the drop in the Fredericton unemployment rate is great news as long as it doesn't go too low.
"If it means more Frederictonians are working, that is absolutely what we want," she said Friday.
"The flip side is that it means the available labour pool is getting tighter and that is challenging for our growing businesses."
Holt said she doesn't expect the unemployment rate to go much lower in 2011.
"This slight decrease in unemployment is probably not going to be continued," she said.
"If anything, I expect to see a leveling off or stabilization through the first half of 2011 and then maybe some change as we get into the mid year."
New Brunswick's seasonally adjusted unemployment rate fell to 9.4 per cent in December, down from 10.3 per cent in November and 9.8 per cent in October.
The province's unemployment rate in December 2009 was 8.9 per cent.
"We continue to be concerned about these numbers," said Post-Secondary Education, Training and Labour Minister Martine Coulombe in a media release Friday.
"The provincial government will continue to work towards creating an environment that will help to create jobs and to ensure our workforce is well educated and meets the demands of the labour market," said Coulombe.