New Brunswick

New Brunswick unemployment rate declines, but 3,000 fewer people working

New Brunswick's unemployment rate declined to 8.9 per cent in January, but 3,000 fewer people were working, according to Statistics Canada's latest labour force report.

Statistics Canada says jobless rate fell to 8.9% in January from 9.3% in December

Statistics Canada's latest labour force report shows a slight decline in the unemployment rate from December to January. (Nati Harnik/Associated Press)

New Brunswick's unemployment rate dropped to 8.9 per cent in January, but the labour market shrunk by 3,000 people, according to Statistics Canada's latest labour force report.

The unemployment rate in December was 9.3 per cent, and the decline of 0.4 per cent was the result of fewer people in the labour market, Statistics Canada said.

About 1,200 full-time jobs were added to the economy, but 4,300 part-time jobs evaporated in January.

Tony Myatt, an economics professor at the University of New Brunswick, said the unemployment rate is falling and the labour market shrinking because more people are leaving the province.

"The population is shrinking, the economic activity is shrinking, the number of jobs is shrinking, the number of people in the workforce is shrinking, and these are shrinking by a lot," he said.

"Either people are leaving or they're so discouraged they're not counted as looking for work."

A closer look at New Brunswick, which Statistics Canada divides into several regions:

  • Campbellton and Miramichi's unemployment increased to 15.4 per cent from 14.9 per cent.
  • Saint John and St. Stephen's unemployment rate dropped to 7. 4 per cent, down from 8.1 per cent in January of last year.
  • Fredericton and Oromocto's unemployment rate is at 5.7 per cent, down from 7.3 per cent.
  • Moncton and Richibucto's unemployment rate rose to 8.9 per cent from 7.5 per cent. 
  • Edmundston and Woodstock's unemployment rate fell to 6.1 per cent from 8.5 per cent.

"The economy is basically in free fall," Myatt said.

Canada as a whole fared better than New Brunswick, with the national unemployment rate declining to about 6.8 per cent last month as the economy added 48,000 jobs. 

In other Atlantic provinces, more people were working in full-time jobs.

Nova Scotia added about 8,400 full–time jobs. Newfoundland and Labrador added 2,300 full–time jobs. Prince Edward Island's job rate stayed about the same at around 2,500 full-time jobs.

More to come