Employment
EMPLOYMENT INFORMATION BULLETIN,
JULY 2011
In 2010, employment in the Canadian mining and mineral-processing industries1 continued to contribute significantly to Canada’s overall employment, accounting for 2.0% of the country’s total labour force. The year also marked the beginning of the slow recovery process after the global economic recession of 2008/09 curtailed production, which resulted in numerous job losses and several mine closures. On the whole, employment in these industries decreased marginally (-0.2%) to 308 000; however, employment in the extractive and smelting and refining sectors increased, and losses can be wholly attributed to the final fabrication stages (Figure 1). By the end of 2010, 16 000 jobs, or a little less than half of what was lost as a result of the economic slowdown, had been reinstated or created.
It is important to note that a breakdown of employment data in mining-related support activities, such as exploration, contract drilling, and transportation, is not available from Statistics Canada and therefore is not accounted for in the Canadian mining total. However, these activities contribute to the creation of many direct and indirect jobs.
The mining and mineral-processing industries accounted for 40.7% of the 757 000 natural resource (mining, forestry, and energy) workers in 2010.2 In 2010, employment in forestry declined for the tenth consecutive year while employment in the energy sector, which had been trending steadily upward until the global recession of 2008/09, rebounded, increasing 2.4%.
In 2010, employment in the Canadian mining and quarrying industry totaled over 52 000 workers, a 1.3% increase over 2009 (Table 1). The increase comes on the heels of the global recession of 2008/09, which resulted in decreased production and dramatic employment reductions. In 2010, however, commodity prices recovered quickly and continued to trend upward throughout the year. However, employment is traditionally seen by many economists as a lagging indicator:3 it tends to be slow to respond to economic downturns and subsequent recoveries, and it changes only after the economy has already begun to follow a particular trend. Thus, despite small improvements in employment numbers in 2010, increased improvements are expected in 2011 and beyond as prices continue to rise and as mining companies increase production to take advantage of increased commodity demand.
Employment increased in the nonmetal mining and coal mining sectors, but decreased in the metal mining sector for the second consecutive year. This decrease is somewhat surprising given the number of openings and re-openings within the metal mining sector in 2010. That said, this is likely the result of the aforementioned lag in employment numbers following an economic recovery and the time required to ramp up production at new openings and at mines that were placed on care and maintenance during the economic recession.
Alongside the turbulence in mining sector employment, future challenges continue to exist. For instance, the Mining Industry Human Resources Council4 still foresees significant labour shortages in the medium to long term for skilled labourers and in replacing an aging work force.
In 2010, three mines closed and a further four suspended operations. However, as prices and their outlooks continued to climb, four mines opened and eight re-opened (Table 2). Among the openings were a gold mine and a nickel-copper mine in Ontario, an iron ore mine in Quebec, and the Meadowbank gold mine in Nunavut. The re-openings included several base-metal mines in Ontario, a gold mine in British Columbia, a gold-silver mine in Quebec, and the Cantung tungsten mine in the Northwest Territories.
As in previous years, salaries remained very competitive in the mining and quarrying industry. Average weekly earnings in 2010 reached $1445,5 the highest level on record and nearly $600 more than the national average.
The primary metal manufacturing industry, comprising establishments primarily engaged in the smelting and refining of ferrous and nonferrous metals, employed 61 000 workers in 2010, a 2.8% increase over 2009. This increase comes despite the closing of smelters in Manitoba (Flin Flon - copper) and Ontario (Kidd Creek - copper and zinc) in 2010. Over the longer term, however, employment in this industry has been trending downward, having decreased by more than 40% since 2000. In terms of earnings in the industry, average weekly earnings, adjusting for inflation, were the second highest on record at $1249.
The nonmetallic mineral product manufacturing industry comprises establishments primarily engaged in the processing of stone, the combining of nonmetallic minerals with additives, and the heat-treating of nonmetallic mineral preparations. Employment in this sector increased 2.0% in 2010 to 50 000. However, for the second consecutive year, average weekly earnings fell by nearly 5.0% to $923, but were still higher than the national average.
The fabricated metal product manufacturing industry comprises establishments primarily engaged in forging, stamping, forming, turning, and joining processes to produce ferrous and nonferrous metal products, and accounts for nearly half of all mining and mineral-processing employment. In 2010, employment declined 2.2% to 144 000 workers and average weekly earnings fell to $929, a 1.5% drop from 2009. The decline in employment can likely be attributed to two phenomena: the slow recovery of the U.S. economy following the economic crisis, which continues to have a negative impact on demand from Canada’s manufacturing industries; and the appreciation of the Canadian dollar relative to the U.S. greenback, which reduces the competitiveness of Canadian manufacturers relative to U.S. operators.
In closing, given current forecasts for continued strength in commodity demand and prices, as well as several advanced projects nearing production, employment in Canada's mining industry should continue to rally. However, the projected forecasts for a strong Canadian dollar will continue to be a challenge for Canada’s mineral and metal manufacturing industries, as noted above.
Note: Information in this bulletin was current as of March 2011.
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1The mining and mineral processing industries include those covered by NAICS codes 212 - mining and quarrying (excluding oil and gas), 327 - nonmetallic mineral product manufacturing, 331 - primary metal manufacturing, and 332 - fabricated metal product manufacturing.
2The data reported for each of the natural resource sectors reflect the value of primary industries and related manufacturing industries. Values for Petroleum Product Wholesalers-Distributors (NAICS 412), Gasoline Stations (NAICS 447), and Pipeline Transportation (NAICS 486) are not included.
3Ellis, Joseph H. (2005), Ahead of the Curve: A Commonsense Guide to Forecasting Business and Market Cycles, Cambridge: Harvard Business School Press.
4Mining Industry Human Resources Council, presentation to the Saskatchewan HR Forum, October 29, 2009.
5All wages information is extracted from Statistics Canada’s Survey of Employment, Payroll and Hours.
Figure 1. Mining and Mineral Processing Employment by Industry, 2000-2010
Source: Statistics Canada, Survey of Employment, Payroll and Hours.
Note: Excludes oil and gas, and services incidental to mining.
Source: Statistics Canada, Survey of Employment, Payroll and Hours.
Note: Numbers may not add to totals due to rounding.
Source: Natural Resources Canada.
| Province/Territory | Metal Mining |
Nonmetal Mining |
Coal Mining |
Total |
|---|---|---|---|---|
| (number) | ||||
| Newfoundland and Labrador | 2 400 | 212 | – | 2 612 |
| Prince Edward Island | – | x | – | x |
| Nova Scotia | – | 873 | – | 873 |
| New Brunswick | x | x | – | 2 104 |
| Quebec | 6 189 | 2 911 | – | 9 100 |
| Ontario | 8 178 | 4 907 | – | 13 085 |
| Manitoba | 2 381 | 252 | – | 2 633 |
| Saskatchewan | x | 4 599 | x | 6 776 |
| Alberta | – | 1 482 | 2 349 | 3 831 |
| British Columbia | 3 110 | 939 | 3 116 | 7 165 |
| Yukon | x | x | – | x |
| Northwest Territories | x | 1 491 | – | x |
| Nunavut | – | – | – | – |
| Total | 25 140 | 18 766 | 6 083 | 49 989 |
Sources: Natural Resources Canada; Statistics Canada.
– Nil; x Confidential.
(a) Due to a lag in the availability of employment data at the provincial level, provincial employment values are taken from the most recent available data from Natural Resources Canada (2009). Statistics Canada and Natural Resources Canada data may differ due to conceptual differences and the timing of the publication of the two data sets.
Note: Numbers may not add to totals due to rounding.
| Mine Name | Month | Province/Territory | Primary Commodity |
|---|---|---|---|
| CLOSED | |||
| Doyon | September | Quebec | Au, Ag |
| Jeffrey | October | Quebec | Chrysotile |
| Thayer-Lindsley | February | Ontario | Ni, Cu |
| SUSPENDED | |||
| Scotia | March | Nova Scotia | Zn, Pb |
| Fabie Bay | January | Quebec | Cu, Au, Ag |
| Copper Cliff South | January | Ontario | Ni, Cu |
| Pamour | July | Ontario | Au, Ag |
| Fraser | February | Ontario | Ni, Cu |
| Montcalm | June | Ontario | Ni, Cu |
| Chisel North | January | Manitoba | Cu, Zn |
| QR | January | British Columbia | Au |
| Cantung | October | Northwest Territories | W |
| OPENED | |||
| Lapa | May | Quebec | Au |
| Black Fox | May | Ontario | Au |
| Hinge | September | Manitoba | Au |
| Bucko | June | Manitoba | Ni, Cu |
| RE-OPENED | |||
| Sleeping Giant | October | Quebec | Au, Ag |
| Redstone | October | Ontario | Ni |
| Chisel North | October | Manitoba | Cu, Zn |
Source: Natural Resources Canada.
© Her Majesty the Queen in Right of Canada, 2011