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Tuesday, January 13, 2009
Saskatchewan leads the country in employment growth, but recent layoffs show the province is not immune from global financial crisis
The number of people working in Saskatchewan increased by 16,900 from December 2007 to December 2008, according to the latest Labour Force Survey released on January 9th by Statistics Canada.
That is an increase of 3.4 per cent, about seven times above the national average of 0.5 per cent.
These impressive December employment numbers were up from November, which showed that employment growth year on year was almost five times the national average for Saskatchewan.
On Monday, however, the robust Saskatchewan job market felt the first impact of the global financial crisis. The Financial Post reported that fertilizer producer Mosaic confirmed it will lay off more than 1,000 workers at its potash mines in Saskatchewan due to “slow fertilizer demand, the global credit crisis and growing potash inventories.”
Posted by Matthew Johnston
Posted by westernstandard on January 13, 2009 | Permalink
Comments
Husky Energy pulled the plug on ALL drilling in SW Saskatchewan. Lloydminster will keep going until the end of January. I'd call that a total lack of immunity.
Every one of my major clients is pretty well dormant right now. This is no joke. I'll be laying off some really valuable people. I, and a couple of family members don't qualify for EI. That's it, I'm done with the oilpatch.
What you've been saying about the resurrection of agriculture is oh so true.
Posted by: dp | 2009-01-13 5:28:19 PM
If deep, deep cuts were made to royalty rates and corporate taxes, would the energy sector improve, dp? Or do you see this situation as a result of low oil and gas prices and an absence of investment capital and bank financing?
Posted by: Matthew Johnston | 2009-01-13 5:43:43 PM
You must think I'm an awfully smart guy.
I can't imagine financing is having much influence. Oil companies pretty well finance projects on the backs of contractors. They take up to 90 days to pay up, that's plenty of time to start collecting revenue.
I think our reserves are just getting too expensive to exploit. Royalties are probably one factor in this. The high cost of services are likely a bigger factor, but times like these are a great opportunity to squeeze everybody a bit.
How can oil prices be a factor? We used to see $20 oil as a reason to celebrate.
Our big problem now is so many companies have poured their capital into the oilsands. For most of my peers, we consider the oilsands a make work project for Maritimers.
Posted by: dp | 2009-01-13 6:06:27 PM
That's a pretty smart answer, dp.
Posted by: Matthew Johnston | 2009-01-13 6:58:18 PM
...is it true, over 20,000 got laid off in Ft Mac?
Posted by: tomax7 | 2009-01-13 8:11:36 PM
1000 jobs gone? ouch...
Posted by: Tom | 2009-01-13 9:52:38 PM
That can't be right, can it? 20,000 people? That's a third of the population. The population of NS and NFLD will take a big jump this winter.
Posted by: dp | 2009-01-13 10:21:01 PM
...yeah sounded a bit high for me, heard it through a neighbour who works up there.
But we know at least 2400 did.
Newfie paper:
http://www.thetelegram.com/index.cfm?sid=64313&sc=82
"The 2,400 or so that are part of the CLAC on sites in Alberta, we contribute more to the economy of Newfoundland by being away than we ever could at home," Walsh said. "People forget, all our money comes home, our cheques go in the banks here."
Posted by: tomax7 | 2009-01-14 9:47:13 AM
Ft Mc Paper:
http://www.fortmcmurraytoday.com/PrintArticle.aspx?e=1302712
Paper says massive layoffs are a rumour.
"Rumours of massive layoffs from oilsands projects in response to current economic volatility seem to have been greatly exaggerated.
While one such rumour claims some 2,500 to 3,500 people were laid off from one site, the fact that construction contracts are coming to an end or have ended seems closer to the truth.
Canadian Natural Resources Limited (CNRL) denies claims it has laid off workers, saying, “The reduction of manpower was expected and planned for.”
Meanwhile at Suncor Energy, spokesman Brad Bellows denied any layoffs at the site, though the scaling down of its construction pace may result in some changes to construction schedules.
In its third-quarter report earlier this month, CNRL announced a strong third quarter as the project is in the final stages to full ramp-up, and in doing so, acknowledged its remaining construction workforce had been reduced by more than 50 per cent over the quarter. "
Posted by: tomax7 | 2009-01-14 9:49:36 AM
Of course Saskatchewan is slipping. It has a Conservative government!!!
Posted by: Trudeau's Ghost | 2009-01-16 8:29:46 PM
I work in the oilsands of Fort Mac and all I hear everyday is talk of lay offs. Some is rumuor but with a lot of truth to it. Suncor shelved or scaled down a lot of its major expansion projects including: Firebag, Steepbank, and Voyageur. This resulting in layoffs of contractors, some estimate as high as 8000 people. Syncrude laid off a few hundred the other day. And who knows how many everywhere else up here.
Also, my brother-inlaw runs service rigs and he says there are 5 rigs sitting in the yard since November.
The price of oil has a lot to do with these cutbacks. how can these companies justify expansions when they are losing money.
Posted by: bd | 2009-01-25 7:30:27 PM
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