NWT/NUNAVUT - Statistics Canada's latest employment figures for the NWT and Nunavut is evidence of an economic recovery, according to the Conference Board of Canada.

Mariella Key unpacks merchandise from a First Air cargo bag in her Yellowknife store Alpaca and Natural Fibers, last week. Key was among the 21,500 people employed late last year in the NWT, which boasted the highest participation rate in the country, according to recent figures from Statistics Canada. - Guy Quenneville/NNSL photo

On Jan. 7, Canada's national statistics bureau released data showing the number of people employed in the NWT and Nunavut during the final quarter of 2010, when compared with 2009, increased by 1,300 and 900, respectively.

In the NWT, the number employed rose to 21,500 from 20,200.

While the number of unemployed also rose during the same period, many Northerners, while without jobs, were nevertheless actively seeking work, and that's a good sign, said Vincent Ferrao, a spokesperson for Statistics Canada.

"...even though employment increased, that didn't cause the unemployment rate to fall. The unemployment rate actually increased. It went from 6.0 per cent to 7.7 per cent," said Ferrao.

"What affects the unemployment rate is not just the number of people who find work or lose work but also the number of people who come into the labour market to look for work. There were more lookers. A lot of them did find work, but others didn't."

Rises in certain key sectors, including construction (up by 400 workers) and retail/wholesale trade (also up by 400 workers) contributed to the NWT having the highest participation rate in the country.

"We saw a huge drop in employment in 2009, and what we're seeing now is some confidence returned to employers. They're starting to hire again," said Kris Shaw, an economist with the Conference Board of Canada.

"We expected the labour markets to improve in the second half of the year, and these numbers bear that out, a bit more than we expected."

Meadowbank strengthens economy

In Nunavut, the number of workers increased to 10,600 from 9,700.

"Again, a similar story," said Ferrao. "Despite the increase in the unemployment rate (to 15.2 per cent from 12.7 per cent) ... there is some positive out of this, being that more people were working and the reason (for) the unemployment rate is more people who came into the labour market were optimistic (in looking) for work."

Increases in the number of workers in the mining and retail/wholesale trade industries – the former driven by Agnico-Eagle's Meadowbank gold mine near Baker Lake – helped beef up Nunavut's employment numbers, added Ferrao.

"I think Meadowbank does factor into that for sure. It gives the entire economy a stronger base, more confidence," said Shaw. "You have a lot of indirect work that is sort of spilling over from the start-up of Meadowbank."

Taken as a whole, the statistics point to further employment gains in 2011, said Shaw.

"I think the takeaway is that employers are starting to hire again. The recovery that we were looking for has manifested itself. As a result, people are willing to start opening up their payrolls again and hiring with more confidence. They expect things to continue to get better."

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