NL

Despite major trade-worker unemployment, N.L. government says it's not worried

74 per cent of trade workers are currently unemployed in Newfoundland and Labrador, but with more megaprojects on the horizon, Jobs Minister Gerry Byrne isn't concerned.

Jobs Minister Gerry Byrne said forward thinking will bring workers back

Man in suit
Corey Parsons, deputy director of Trades N.L., said 74 per cent of the labour organizations 14,000 members are unemployed in Newfoundland and Labrador as of June 2024. (Jenna Head/CBC)

The completion of several megaprojects, including the West White Rose concrete gravity structure, Western Memorial Regional Hospital, and the Adult Mental Health and Addictions Centre, has left thousands of commercial trade workers unemployed in Newfoundland and Labrador. 

Trades N.L. Deputy Director Corey Parsons told CBC that 74 per cent of its 14,000 members are without work in the province and left to choose between two options: apply for employment insurance benefits or chase work across Canada.

"We've just come off a couple of busy years in the province," Parsons said. "So all those workers, who worked the last two years on those projects, they're either unemployed today or travelling across the country looking for jobs so that they're able to return home to their families."

Parsons estimates more than half chose to chase the megaproject money, meaning Newfoundland and Labrador's surplus of workers benefits places like Ontario, which are facing their own skilled labour shortages. 

construction workers in crane
The competition of several megaprojects including the West White Rose concrete gravity structure has left thousands of skilled trades workers unemployed in Newfoundland and Labrador. (CBC)

"With our affiliates, we're able to dispatch people into other provinces to secure employment," Parsons said. "But as we all know, our men and women would rather be working closer to home here in Newfoundland and Labrador."

Consistent work in the province, however, could be a couple of years out. 

The labour organization is currently recruiting high school students to fill future gaps in the workforce as new projects start and many retire.

As they wait, Trades N.L. has halted many of its entry-level training opportunities for new graduates.

"We wouldn't want to be bringing people into the trades today, unsure if we'll have a job for them tomorrow," Parsons said.

Province optimistic

Jobs Minister Gerry Byrne isn't worried that thousands of this province's skilled trade workers now work away.

At a jobs forum in St. John's on Wednesday, Byrne kept his eyes on the Churchill River projects and Bay Du Nord — megaprojects, he believes, will bring workers back.

"Forward thinking is what's going to get those tradespeople back in our province," Byrne told reporters.

WATCH | Why some tradespeople have to find work out of province: 

Thousands of N.L. commercial trade workers looking for work as megaprojects wrap up

13 hours ago
Duration 2:28
Trades N.L. estimates 74 per cent of its members are out of work in this province. The CBC’s Jenna Head takes a look at the reasons why, and how they’re keeping their skills sharp.

'Winners curse'

In the meantime, Memorial University economics professor Tony Fang, is warning the province to be careful where it focuses its energy and resources.

For example, its dependence on the Churchill River projects, he said, could come back to bite them.

A person with black hair wearing a suit and tie smiles.
Tony Fang is the Stephen Jarislowsky Chair in Economic and Cultural Transformation at Memorial University's Economics Department leading a team of immigration researchers. (Submitted by Tony Fang)

"Sometimes we call this a winner's curse. You're well endowed for those natural resources, and that might create some kind of short-term focus," Fang said. "For example, a high school student might drop out, pick up those jobs when it's coming through. But when we run out of those resources. What are they going to do?"

Fang said the trades operate on a cycle. Project announcements and work are exciting, but once the work is complete, employees sometimes have to wait for what's next. 

He wants to make sure the province isn't placing all its bets on the natural resource economy. 

"You have to be also ready for the boom days, but also for rainy days," Fang said. "Those kind of project, they have a life cycle as well, right? So we have to really find out, some alternative industries, you know IT, Ocean technology, tourism, for example, is booming. I think it's a good sign."

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ABOUT THE AUTHOR

Jenna Head

Journalist

Jenna Head is a journalist working with the CBC bureau in St. John's. She can be reached by email at Jenna.Head@cbc.ca.