The Old Perlican Region is located on the northern tip of Newfoundland’s Avalon Peninsula at the head of Trinity Bay and Conception Bay. Key seafood processing towns include Old Perlican (pop. 633) and Bay de Verde (pop. 392). The region is located 170 kilometres from St. John’s, the province’s capital city (pop. 178,000). Overall, median hourly wages for shellfish/fish labourers and plant workers in the region are comparable with other regions in the province. The median hourly wages were higher than for some of the other C and D level occupations available in the region (e.g., retail, cashiers), but on par with other labourintensive occupations.
Regional labour market analysis suggests local seafood processing employment at both average and peak demand already exceeds available supply requiring workers from outside the region. This is not expected to change over the forecast period. Seasonal peaks in seafood processing employment in Old Perlican raise demands by nearly double (97%) above annual average employment.
The population in the region is expected to slowly decline at an annual rate of just less than 1% over the next decade. Combined with an aging population, the size of the labour force is anticipated to decline over the upcoming period from 1,453 in 2017 to 1,331 by 2030. The overall unemployment rate during this period is expected to also decline from 17% (2017) to approximately 11% (2030).
Seafood processing workforce in the Old Perlican Region is expected to decrease from an estimated average of 716 workers to 706 workers between 2017 and 2030 (average estimates), a decrease of 10 workers (-1%). Accounting for replacement demand (retirements or death) local processors will likely need to hire an estimated 362 new workers between 2018 and 2030. This figure does not include turnovers, which can add significantly to total annual recruitment demands.
Labour market tightness: The labour market tightness, a measure calculated by estimating labour requirements in other sectors in Old Perlican Region and subtracting those requirements from the total labour force estimates, reveals substantial challenges facing this industry at average and peak levels.
The labour market tightness, a measure calculated by estimating labour requirements in other sectors in Old Perlican Region and subtracting those requirements from the total labour force estimates, reveals substantial challenges facing this industry at average and peak levels.
1 = Regional labour force meets seafood processing employment demand at annual average and peak employment levels
2 = Regional labour force meets seafood processing employment demand at annual average levels only
3 = Regional labour force does not meet seafood processing employment at annual average or peak levels
HR CHALLENGES
As seafood processors struggle to remain competitive and increase productivity, common challenges experienced throughout this region include an aging workforce, outmigration of youth and young families, a sparse local population to draw from, high absenteeism during busier months and seasonality and weather challenges.
PROMISING PRACTICES AND INNOVATIONS
As seafood processors struggle to remain competitive and increase productivity, common challenges experienced throughout this region include an aging workforce, outmigration of youth and young families, a sparse local population to draw from, high absenteeism during busier months and seasonality and weather challenges.
1 The number of establishments is based on 2016 data from Statistics Canada’s Business Register.
2 Seafood processing employment is estimated based on 2016 Census data for the Southern (NS) economic region.
This report is one in a series of 12 regional reports developed to provide detailed labour market information (LMI) for the fish and seafood processing industry in Atlantic Canada. The regionally focused LMI is one component of a broader study undertaken by Food Processing Skills Canada (FPSC) in collaboration with the Employment and Social Development Canada and various provincial and industry partners entitled Securing Canada’s Fish and Seafood Workforce: Real Challenges, Practical Solutions and Fresh Perspectives.
The aim of the overall study is to identify the scope of human resource (HR) challenges for the Atlantic fish and seafood processing sector and compile HR best practices that would help employers meet their labour force current and future needs. One important aspect of understanding HR challenges in the sector, some of which are region specific, was to gather detailed information and profiles of areas that rely heavily on fish and seafood processing for their local economies. Twelve regions across the four Atlantic provinces were selected for specific focus based on the amount of processing activity, and proportion of labour force working in the industry. Old Perlican in Newfoundland and Labrador (NL) was selected as one of these regions for detailed focus.
The initial sections of this report provide overviews of the Old Perlican Region, fish and seafood processing overall in the province of Newfoundland and Labrador, and specifically in the Old Perlican region. This is followed by sections that provide an overview of the region’s labour force and the specific findings for the labour supply and demand, current and future. The final two report sections outline the HR challenges identified in the region and some of the promising practices and innovative solutions that employers and communities are trying to address labour supply issues.
The Old Perlican Region is located on the northern tip of the Avalon Peninsula of Newfoundland, at the head of Trinity Bay and Conception Bay. Key seafood processing towns located in the region include Old Perlican (pop. 633) and Bay de Verde (pop. 392). The region is located approximately 170 km from St. John’s, the province’s capital city (pop. 178,000).
The population of Old Perlican Region is aging and is expected to slowly decline at an annual rate of just under 1% over the next decade. Compared to the province overall, the population has proportionally lower levels of immigrants, visible minorities non-Canadian citizens and people identifying as Aboriginal (according to Census definitions).
The overall population for the region in 2017 was 4,316. According to Census 2016 profiles, the proportions of immigrants (1.0%), visible minorities (0.2%), non-Canadian citizens (0.2%) and the population that identify as Aboriginal according to Census definitions (1.1%), are lower than those overall for Newfoundland and Labrador (see Table 1).
TABLE 1: OLD PERLICAN REGION POPULATION CHARACTERISTICS
| CHARACTERISTIC | OLD PERLICAN REGION | NEWFOUNDLAND & LABRADOR |
|---|---|---|
| FEMALE | 2,120 | 265,790 |
| SHARE OF POPULATION | 49.9% | 51.1% |
| IMMIGRANTS | 40 | 12,075 |
| SHARE OF POPULATION | 1.0% | 2.4% |
| NOT CANADIAN CITIZENS | 10 | 9,090 |
| SHARE OF POPULATION | 0.2% | 1.8% |
| VISIBLE MINORITIES | 10 | 11,810 |
| SHARE OF POPULATION | 0.2% | 2.3% |
| ABORIGINAL IDENTITY | 45 | 45,725 |
| SHARE OF POPULATION | 1.1% | 8.9% |
According to projections, the population levels are expected to decrease at a rate of approximately -0.3% to -0.7% annually over the upcoming 13 years (4,316 in 2017 and then 4,136 by 2030). Overall, it will be an aging population with the proportion of the age cohort 65 years or older rising from 29% in 2017 to approximately 38% by 2030 (see Figure 1). The population growth will be negatively impacted by the continued aging of the population and increased number of deaths, along with a decline in birth rate. There will be a net negative migration pattern (outmigration) anticipated up until 2022, at which point the migration pattern will turn to net positive (in-migration), but this not expected to offset the negative natural population growth (i.e., deaths exceeding births) (see Figure 2).
FIGURE 1: POPULATION BY AGE GROUP (%) (2017 TO 2030)
FIGURE 2: COMPONENTS OF POPULATION CHANGE (2017 TO 2030)
The overall education level of the region’s residents is lower when compared with Newfoundland and Labrador overall (see Figure 3). Approximately one-third of the working age population (31%) do not have a high school diploma (vs. 23% for the province) and 6% (vs. 15% for the province) have a university degree. From interviews, it was determined that part of this may be attributable to the ongoing out-migration from the region of youth into often more urban centres, the same group who also often have higher levels of education than older cohorts.
Newfoundland and Labrador’s GDP was hit hard by the drop in oil prices in 2014-2015, resulting in the provincial GDP falling. Real GDP bounced back in 2016-2017 helped by strong growth in the energy sector. Oil related exports are expected to help drive growth in the economy over most of the forecast period. Falling investment is expected to be offset by a full year of production at the Hebron offshore platform in 2018, leaving overall growth stagnant. GDP growth averages 0.5% over the medium term before increasing to 1.6% per year over 2022-2026 as production at the White West Rose oil field helps to offset the end of production at Terra Nova and the Voisey’s Bay nickel mine extension comes online. Over the 2017-2030 period real GDP growth is anticipated to average 1%.
The overall growth of real gross output or inflation adjusted output for prepared fish products is expected to accelerate over the forecast period after declining sharply on average over the 2013 to 2017 period to average 1.5% over the 2018-2021 period, 2.6% over 2022-2026 and 2.6% over the 2027-2030 period. There are many reasons for the improvement in overall real output. There is expected to be a deceleration in the decline in overall consumption and ultimately a reversal as population decline moderates and consumer demand for prepared fish products improves. International exports are expected to rise at a moderate pace throughout the forecast period as trading partner market growth is moderately strong and trade agreements encourage market penetration in the European Union and in the members of the TPP trade pact. Interprovincial exports are expected to improve as consumer demand for processed fish products in other provinces increase. Interindustry demand also improves as the demand for processed fish inputs rises, primarily as a result of increased provincial food production.
TABLE 2: NL PREPARED SEAFOOD END MARKET GROWTH (ANNUAL AVERAGE % CHANGE)
| END MARKET | 2013-2017 | 2018-2021 | 2022-2026 | 2027-2030 |
|---|---|---|---|---|
| Consumption | -0.8 | -0.8 | -0.3 | 0.0 |
| International Exports | -8.2 | 1.6 | 2.5 | 2.6 |
| Interprovincial Exports | -0.4 | 0.5 | 0.6 | 0.9 |
| Interindustry Demand | -0.8 | -0.4 | 1.6 | 1.7 |
| Imports | -0.7 | -0.5 | 0.0 | 0.3 |
| Total End Market Demand | -7.9 | 1.5 | 2.6 | 2.6 |
Seafood processing employment is expected to remain near current levels of 1,500 workers (-0.7% change from 2018 to 2030) assuming the industry can sustain significant productivity gains. Labour productivity (GDP per hour worked) is forecast to expand at 1.7% on average over the forecast period. In order to produce the forecasted output total hours of work is forecast to fall by -0.4% on average over 2018-2021 and then increase by 0.6% and 0.7% on average over 2022-2026 and 2027-2030 respectively in order to produce the forecasted output. Average hours worked per employee is forecast to rise over the projection period by 0.4% on average, which leads to the total number of jobs falling by -0.8% over 2018-2021, and then rising by 0.3% over 2022-2026 and 0.3% over 2027-2030.
Replacement demands (deaths and retirements) are expected to total 775 between 2017 and 2030. This represents the need to replace half (51%) of the current workforce over the next 13 years. These hiring requirements are net numbers of new workers and do not include annual hiring requirements due to turnover, which can double or triple the actual number of annual new hires needed to sustain employment requirements.
The region hosts three processors ranging in size and focus primarily on processing snow crab and shrimp.
Overall, there are three fish and seafood processing establishments in the Old Perlican Region3. The main species processed are snow crab and shrimp along with smaller amounts of groundfish, pelagics and shellfish (e.g., scallops). As noted on the map in Section 1, there are two larger establishments and then one relatively smaller plant (under 50 employees). The two larger facilities focus primarily on snow crab and shrimp. The processing plants operate on a seasonal basis and open around April and run through until late fall/early winter depending on product availability.
3 Number of establishments is based on the 2016 data from Statistic Canada’s Business Registrar.
4 Average employment refers to average monthly employment over the calendar year, while peak employment is the average number employed during the month with the highest employment during the year.
TABLE 3: PROFILE OF WORKERS BY OCCUPATIONS FOR OLD PERLICAN REGION – 2017 (AVERAGE & PEAK)
| AVG 2017 (#) | AVG 2017 (%) | PEAK 2017 (#) | PEAK 2017 (%) | EXTRA NEEDED FOR PEAK | |
|---|---|---|---|---|---|
| Total Employment | 716 | 100% | 1,408 | 100% | 692 |
| FOUNDATIONAL (NOC 9618) | |||||
| Shellfish Processing Labourer | 154 | 22% | 383 | 27% | 229 |
| Fish Processing Labourer | 62 | 9% | 152 | 11% | 90 |
| INTERMEDIATE (NOC 9463) | |||||
| Shellfish Plant Worker | 122 | 17% | 303 | 22% | 181 |
| Fish Plant Worker | 49 | 7% | 123 | 9% | 74 |
| SUPERVISORY (NOC 9213) | |||||
| Supervisors | 24 | 3% | 24 | 2% | 0 |
| MANAGEMENT (NOC 0911; 0016) | |||||
| Management | 21 | 3% | 21 | 1% | 0 |
| OTHER CATEGORIES | |||||
| Maintenance | 22 | 3% | 29 | 2% | 7 |
| Skilled Trades | 48 | 7% | 72 | 5% | 24 |
| Quality Control Technician | 13 | 2% | 16 | 1% | 3 |
| Office Staff | 35 | 5% | 35 | 2% | 0 |
| Other Occupations | 166 | 23% | 249 | 18% | 83 |
716
AVERAGE NUMBER OF WORKERS EMPLOYED IN THE SEAFOOD PROCESSING INDUSTRY IN 2017
From the data available, none of the workers are unionized in this region.
From an examination of available data for the region, it does not appear that workers are unionized in the plants in this region.
Overall, median hourly wages for shellfish/ fish labourers and plant workers in the region are comparable with other regions in the province. The median hourly wages were higher than for some of the other C and D level occupations available in the region (e.g., retail, cashiers), but on par with other labour-intensive occupations (e.g., farm worker), and significantly lower than the median wage of a deckhand.
TABLE 4: WAGE LEVELS FOR SELECTED OCCUPATIONS – 2017 ($/HOUR)
| Occupation | Low Wage (10th percentile) | Median Wage (50th Percentile) | High Wage (90th percentile) |
|---|---|---|---|
| Shellfish/Fish Processing Labourer (NOC 9618) | |||
| Avalon Peninsula Region | 12.50 | 13.80 | 15.87 |
| All Newfoundland & Labrador | 11.96 | 14.10 | 16.51 |
| Notre Dame – Central – Bonavista Bay Region | 11.96 | 13.65 | 16.05 |
| South Coast – Burin Peninsula Region | 11.96 | 13.65 | 16.05 |
| West Coast – North Peninsula – Labrador Region | 12.00 | 13.75 | 15.37 |
| Shellfish/Fish Plant Worker (NOC 9463) | |||
| Avalon Peninsula Region | 12.58 | 13.33 | 15.10 |
| All Newfoundland & Labrador | 12.45 | 13.45 | 15.10 |
| Notre Dame – Central – Bonavista Bay Region | 12.00 | 14.95 | 15.66 |
| South Coast – Burin Peninsula Region | 11.44 | 13.65 | 15.55 |
| West Coast – North Peninsula – Labrador Region | 12.27 | 13.21 | 15.35 |
| Other C&D Level Occupations | |||
| Farm Worker (NOC 8431) | 11.15 | 12.98 | 18.00 |
| Deckhand, Fishing (NOC 8441) | 15.00 | 30.00 | 100.00 |
| Retail Sales (NOC 6421) | 11.15 | 11.75 | 20.00 |
| Food Services (NOC 6711) | 11.15 | 11.25 | 19.80 |
| Cashier (NOC 6611) | 11.15 | 11.15 | 11.30 |
Source: Employment and Social Development Canada – Job Bank – Labour Market Information
The median hourly wage for shellfish/fish labourers (NOC 9618) in the Avalon Region in 2017 was $13.80/hour (see Table 4). The median wage for shellfish/fish plant workers (NOC 9463) was similar at $13.33/hour. Median wage levels for these two occupational groups across other regions in the province were similar. To provide some context, the minimum wage in Newfoundland and Labrador in 2017 was $10.75 to $11.00/hour.
When compared with other C&D Level Occupations in the same region, the median wages for shellfish/fish labourers and plant workers were higher by approximately $0.80 to $2/hour. The one exception was for fishing deckhands, which had a substantially higher median hourly wage ($30/hour) to that of processing labourers.
The overall size of the labour force for the region in 2017 was estimated at 1,453 (out of a total population of 4,316). The largest proportions of the labour force for the Old Perlican Census subdivision work in manufacturing (39% – includes fish and seafood processing) agriculture, forestry, fishing and hunting (20% of labour force), and retail trade (9%). 5
According to Census 2016 data, only one-eighth (12%) of the population 15 years or older worked full time for the full-year (see Figure 4). Approximately one-half worked part of the year and/or part time (48%), while a smaller proportion (40%) reported not working in 2015. This is consistent with the information collected from interviews that indicated that much of the private sector-based employment in the region is seasonal (e.g., fish harvesting, seafood processing), so it is challenging for people to find full-time, year-round employment.
FIGURE 4: WORK PATTERNS (15 YEARS AND OLDER ) – OLD PERLICAN REGION
Source: Census 2016
5 Census 2016 – Old Perlican Census Subdivision
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sept | Oct | Nov | Dec | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total (All Occupations) | 507 | 497 | 503 | 463 | 253 | 250 | 310 | 380 | 397 | 440 | 443 | 490 |
| Skill Level C & D* | 400 | 400 | 403 | 367 | 183 | 170 | 247 | 313 | 333 | 357 | 357 | 387 |
| Food Processing** | 223 | 220 | 223 | 190 | 43 | 60 | 110 | 163 | 177 | 190 | 197 | 207 |
*includes intermediate jobs that usually call for high school and/or job-specific training (Skill Level C) & labour jobs that usually give on-the-job training (Skill Level D)
**includes the following occupations: manufacturing managers (NOC 0911); bakers (6,332); retail salespersons (6,421); material handlers (7,452); food and beverage processing supervisors (9,213); industrial butchers and meat cutters (9,462); fish and seafood plant workers (9,463); food and beverage processing labourers (9,617)
Source: Employment and Social Development Canada 2017
6 Monthly EI beneficiaries as reported in the table represent the average number of beneficiaries in the month between 2014 and 2016.
Overall, the unemployment rate for the region in 2017 was 17.4% on average but fluctuated considerably from month to month from a low of 9% to a high of 25.2%. The seasonal fluctuations in unemployment rates were noted specifically in the food manufacturing sector (NAICS 311 – which includes fish and seafood processing). Within this sector, the lowest unemployment rate in 2017 occurred in July (14.7%), with the highest rates occurring in the month of December (41.2%). According to Census data, nearly one-half (42%) of the population 15 years or older who had income received regular Employment Insurance (EI) payments at some point in 2015.
According to EI data provided by ESDC for the region, the average monthly number of EI claimants in food processing sectors across three years demonstrates the seasonality of the number of EI claimants ranging from an average low of 43 in the month of May to approximately five times that number December through to March period at 207 to 223 (see Table 5). Figure 5 also demonstrates the seasonality of the number of EI claimants with the cyclical pattern illustrated to be similar across the three years of available data (2014-2016) with similar numbers of claimants occurring in 2016 (-.06% for overall claims on an annual average for this period; -4.1% for food processing).
THE AVERAGE UNEMPLOYMENT RATE FOR THE REGION IN 2017 WAS 17.4%, WITH CONSIDERABLE MONTHLY FLUCTUATIONS GIVEN THE SEASONALITY OF EMPLOYMENT OPPORTUNITIES IN THE REGION.
FIGURE 5: MONTHLY EI CLAIMANTS FOR OLD PERLICAN – 2014 TO 2016
THERE ARE NO LARGE INDIGENOUS COMMUNITIES IN THE REGION, WITH THE NEAREST RESERVE APPROXIMATELY SIX HOURS AWAY.
In 2017, there was plants in the region using the Temporary Foreign Workers Program (TFWP) (n=1 out of 3), receiving approvals for 50 workers, indicating that the TFWP is not an overly significant source of labour for the region’s plants (estimated at approximately 3% of the sector’s labour force at peak period).
According to Census, there is a very small proportion of the population (1%) that identify as Aboriginal. The Miawpukek First Nation’s reserve lands are approximately a six hour drive from Old Perlican and has a total on-reserve population of approximately 840. The Qalipu Mi’kmaq First Nation do not control reserve lands, but apparently from the Census, do not have many members in the Old Perlican region.
Currently, temporary foreign workers do not play a significant role in addressing labour supply issues in the fish and seafood processing industry in Old Perlican Region (estimates of approximately 3% in peak season).
THERE IS CURRENTLY AN INSUFFICIENT LOCAL LABOUR FORCE TO MEET THE REGION’S LABOUR REqUIREMENTS (FOR ALL INDUSTRIES) LEAVING AN OVERALL POTENTIAL GAP, WHICH INCREASES DURING PEAK PERIODS. THIS TREND IS EXPECTED TO CONTINUE THROUGH TO 2030. FOR THE FISH AND SHELLFISH PROCESSORS, THIS SHORTAGE IS MOST SEVERE DURING THE PROCESSING PEAK SEASON, WHICH UNFORTUNATELY TENDS TO COINCIDE WITH MANY OTHER COMPETING SECTORS’ PEAK SEASONS.
TABLE 6: POPULATION AND LABOUR FORCE OUTLOOK SUMMARY – PICTOU REGION – 2017-2030
| 2017 | 2018 | 2019 | 2020 | AVG 2021- 2025 |
AVG 2026- 2030 |
|
|---|---|---|---|---|---|---|
| Total Population | 4,316 | 4,304 | 4,280 | 4,250 | 4,192 | 4,136 |
| Avg. Annual Change (%) | -0.3% | -0.6% | -0.7% | -0.4% | -0.3% | |
| Total Labour Force | 1,453 | 1,414 | 1,395 | 1,347 | 1,301 | 1,331 |
| Avg. Annual Change (%) | -2.7% | -1.4% | -3.4% | -1.0% | 1.0% | |
| Total Employment | 1,200 | 1,164 | 1,158 | 1,130 | 1,121 | 1,180 |
| Avg. Annual Change (%) | -0.3% | -0.5% | -2.4% | -0.2% | 1.5% | |
| Unemployment Rate | 17.4% | 17.7% | 17.0% | 16.1% | 13.9% | 11.3% |
The model projections indicate that considering the trends with natural population decline combined with mixed patterns of in/out migration over the period, the Old Perlican Region will continue to experience a small population decline within the period under study (2017 to 2030) (see Table 6). These factors will also contribute to a decline in the labour force, at a slightly slower rate than population decline given the aging population. The labour force is anticipated to decline from a current 4,300 to over 4,100 by 2030. Overall, average unemployment rates are expected to decline over the period given the shrinking labour force.
Specifically, for this project, the analytic team developed an approach to demonstrate the “tightness” of the labour market in supplying the employment demands from seafood processing in the identified regions. This was calculated by estimating labour requirements in other sectors in the region (nonseafood processing labour requirements) and subtracting those requirements from the total labour force estimates. This difference results in an estimated “residual” labour force for the region from which seafood processing needs to draw. Not all of the seafood processing workers come from the residual pool, as the sector actively competes with other sectors for workers; however, the “tightness” measure indicates where shortages are likely occurring for not only the seafood processing sector but likely other sectors drawing from the same labour supply. Using this approach, the current and future labour market tightness was calculated to determine the extent to which the region’s labour force can meet the labour requirements of all sectors (both non-seafood processing and seafood processing).
As illustrated in Table 7 and Figure 6, the Total Seafood Processing Employment (Annual Average and Peak) is lower than the Residual Total Labour Force. This suggests that there is currently (2017) sufficient local labour force to meet all of the region’s labour requirements. However, the labour market tightens over the projection period, with the residual labour force falling while employment requirements in the industry increase, thus resulting in a tighter labour market by 2026.
The analysis outlined in Table 7 and Figure 6 describes the labour market context within which the fish and seafood processors are operating with respect to finding sufficient numbers of workers from the local labour supply. Within this competitive labour market, the industry employers have had some success recruiting. For example, in peak season in 2017, the seafood processing industry was able to recruit and employ 437 within a labour market that had a residual total labour force of only 469. This means that the seafood processing industry was likely recruiting workers from other industries, and potentially recruiting workers from outside the local region. While the industry did experience vacancies, these would likely have been substantially higher had it not been successful in recruiting labour external to the region, and/or competing with other industries in recruiting workers.
TABLE 7: TOTAL LABOUR MARKET TIGHTNESS: OLD PERLICAN REGION – 2017-2030
| 2017 | 2018 | 2019 | 2020 | AVG 2021-2025 | AVG 2026-2030 | |
|---|---|---|---|---|---|---|
| Total Labour Force7 | 1,453 | 1,414 | 1,395 | 1,347 | 1,301 | 1,331 |
| Total Non-Seafood Processing Labour Requirement8 | 1,286 | 1,248 | 1,237 | 1,203 | 1,182 | 1,233 |
| Residual Total Labour Force9 | 168 | 166 | 158 | 144 | 119 | 98 |
| Total Seafood Processing Employment (Annual Average) | 716 | 712 | 698 | 698 | 698 | 706 |
| Total Seafood Processing Employment (Peak) | 1,408 | 1,399 | 1,373 | 1,372 | 1,372 | 1,387 |
FIGURE 6: TOTAL SEAFOOD PROCESSING EMPLOYMENT AND RESIDUAL LABOUR FORCE: OLD PERLICAN REGION – 2017-2030
7 The labour force includes all individuals who are either employed or unemployed and actively seeking work. The unemployed would include those on regular EI claims along with those receiving other sources of income (e.g., social assistance) who are actively looking for employment.
8 Non-seafood processing labour requirement consists of employment demand from other sectors with an allowance for typical levels of sector-specific unemployment.
9 The residual labour force is the difference between the labour force and the non-seafood processing labour requirement.
TABLE 8: LOWER-SKILL LABOUR MARKET TIGHTNESS: OLD PERLICAN REGION – 2017-2030
| 2017 | 2018 | 2019 | 2020 | AVG 2021-2025 | AVG 2026-2030 | |
|---|---|---|---|---|---|---|
| Lower-Skill Labour Force10 | 3,233 | 3,244 | 3,209 | 3,170 | 3,062 | 3,053 |
| Lower-Skill Non-Seafood Processing Labour Requirement | 3,027 | 3,027 | 3,022 | 2,966 | 2,878 | 2,914 |
| Residual Lower-Skill Labour Force | 205 | 217 | 207 | 204 | 184 | 139 |
| Lower-Skill Seafood Processing Employment (Annual Average) | 379 | 361 | 358 | 374 | 370 | 414 |
| Lower-Skill Seafood Processing Employment (Peak) | 499 | 476 | 471 | 492 | 488 | 545 |
10 The lower-skill labour force is the portion of the total labour force with no education beyond a high school diploma.
As noted in the description of the occupations, approximately two-thirds of those employed are in occupations in the industry that are in the “C” and “D” levels, which are often referred to as “lower-skill” occupations, not requiring post-secondary education. As well, these occupations are noted among plant managers as the most challenging with respect to recruitment and retention. Given that much of the focus is on the lower-skill labour force, the study also analyzed the “tightness” of the lowerskill labour market (see Table 8 and Figure 7). The tightness of lower-skill labour market is also high, particularly in peak season. For example, in peak season in 2017, the seafood processing industry was able to recruit and employ 905 workers within a labour market that had a residual total labour force of only 115. This means that the seafood processing industry was likely recruiting workers from outside the local region. This level of tightness suggests that many of the industries that rely on a lower-skill labour market are also experiencing labour shortages in this region.
FIGURE 7: LOWER-SKILL SEAFOOD PROCESSING EMPLOYMENT AND RESIDUAL LABOUR FORCE: OLD PERLICAN REGION – 2017-2030
The overall summary of the labour market tightness as modelled for the Old Perlican Region demonstrates that the local labour force is unable to meet the employment requirements of employers in the area at average or peak levels. This tightness is demonstrated for the overall labour market as well as the lower-level skill workers. This trend is anticipated to continue throughout the period of study (2017 to 2030). These results assume similar industry employment demand (e.g., no new major employers arriving or leaving the area) and no major changes in net migration patterns.
TABLE 9: SUMMARY OF LABOUR MARKET TIGHTNESS: OLD PERLICAN REGION – 2017-2030
1 = Regional labour force meets seafood processing employment demand at annual average and peak employment levels
2 = Regional labour force meets seafood processing employment demand at annual average levels only
3 = Regional labour force does not meet seafood processing employment at annual average or peak levels
Within a very tight labour market, projections indicate that the Old Perlican Region employers will need to attract approximately 360 new workers to the fish and seafood processing industry by 2030. This is equivalent to approximately 50% of their current annual average workforce. This requirement is due to replacement of anticipated retirements over this period, while considering projected industry growth and labour productivity gains. Unfortunately, this recruitment will be occurring within the context of a very tight regional labour market that is currently experiencing labour shortages, which are predicted to continue during this period. The requirement to attract new workers over this period will be challenging as the employers are also trying to grow, remain competitive and increase productivity.
Overall, it is anticipated that while there will be some shedding of jobs in the short-term (2017) due to negative industry growth. However, as of 2018, there will be a need for increased numbers of new hires to address required replacements due to retirements and deaths among the workforce (see Table 10).
TABLE 10: HIRING REQUIREMENT OUTLOOK: OLD PERLICAN REGION – 2017-2030
| 2017 | 2018 | 2019 | 2020 | SUM 2021-2025 | SUM 2026-2030 | |
|---|---|---|---|---|---|---|
| Net Hiring Requirement11 | -254 | 25 | 15 | 29 | 142 | 151 |
| Industry Growth | -284 | -5 | -13 | 0 | 3 | 10 |
| Retirements and Mortality | 29 | 29 | 29 | 29 | 139 | 141 |
The employment outlook according to occupation is detailed in Table 11 (Annual Average) and Table 12 (Peak).
TABLE 11: EMPLOYMENT OUTLOOK (ANNUAL AVERAGE): OLD PERLICAN REGION – 2017-2030
| 2017 | 2018 | 2019 | 2020 | AVG 2021-2025 | AVG 2026-2030 | |
|---|---|---|---|---|---|---|
| Total Employment | 716 | 712 | 698 | 698 | 698 | 706 |
| Shellfish Processing Labourer | 154 | 153 | 151 | 150 | 150 | 152 |
| Fish Processing Labourer | 62 | 61 | 60 | 60 | 60 | 61 |
| Shellfish Plant Worker | 122 | 121 | 119 | 119 | 119 | 120 |
| Fish Plant Worker | 49 | 49 | 48 | 48 | 48 | 49 |
| Supervisors | 24 | 23 | 23 | 23 | 23 | 23 |
| Maintenance | 22 | 22 | 22 | 22 | 22 | 22 |
| Skilled Trades | 48 | 48 | 47 | 47 | 47 | 47 |
| Quality Control Technician | 13 | 13 | 13 | 13 | 13 | 13 |
| Management | 21 | 21 | 20 | 20 | 20 | 20 |
| Office Staff | 35 | 35 | 34 | 34 | 34 | 34 |
| Other Occupations | 166 | 165 | 162 | 162 | 162 | 164 |
11 Net hiring requirement does not include hiring required as a result of turnover (i.e. hiring workers to replace individuals who quit or are fired from their positions). The imputed turnover rate (total number of people workers hired as a share of the total number of workers) for Atlantic seafood processors is 40%.
TABLE 12: EMPLOYMENT OUTLOOK (PEAK): OLD PERLICAN REGION – 2017-2030
| 2017 | 2018 | 2019 | 2020 | AVG 2021- 2025 |
AVG 2026- 2030 |
|
|---|---|---|---|---|---|---|
| Total Employment | 1,408 | 1,399 | 1,373 | 1,372 | 1,372 | 1,387 |
| Shellfish Processing Labourer | 383 | 380 | 373 | 373 | 373 | 377 |
| Fish Processing Labourer | 153 | 152 | 150 | 149 | 149 | 151 |
| Shellfish Plant Worker | 303 | 301 | 295 | 295 | 295 | 298 |
| Fish Plant Worker | 123 | 122 | 119 | 119 | 119 | 121 |
| Supervisors | 24 | 23 | 23 | 23 | 23 | 23 |
| Maintenance | 29 | 29 | 28 | 28 | 28 | 29 |
| Skilled Trades | 72 | 72 | 70 | 70 | 70 | 71 |
| Quality Control Technician | 16 | 16 | 16 | 16 | 16 | 16 |
| Management | 21 | 21 | 20 | 20 | 20 | 20 |
| Office Staff | 35 | 35 | 34 | 34 | 34 | 34 |
| Other Occupations | 249 | 248 | 243 | 243 | 243 | 246 |
The “core” group of returning workers is aging with one plant indicting their average age is now 51 years old. This would be reflective of the labour-focused workforce in various areas of rural Newfoundland, which similar to other Atlantic rural communities, is experiencing an out-migration of youth and young families as they leave to take advantage of educational and employment opportunities outside of the smaller rural communities.
Unlike some of the other regions visited, the seafood processing industry in Old Perlican does not seem to have to deal with the same negative image that it experiences in other regions. This may be attributable to the long history of fish landing and processing on the Avalon peninsula and processing being the largest employers in the regions.
Plant representatives reported that in addition to the seasonality challenges, there are also HR challenges related to the dependency on weather as to when the processing will occur (i.e., when raw product is landed) and variability in quota announcements. This is a particular challenge when workers are relocating to the community with questions as to when they should be arriving on-site and will they be receiving the number of hours and weeks expected.
Unlike some of the other regions, there is not as much competition from other industries in this region for lower-skill labour. Processors are the largest employers with the largest proportion of the workforce working for a small number of plants. While there is competition between plants for resources, these are generally all within the seafood processing sector (with some limited competition from fish harvesting positions where the pay is substantially higher).
The local labour pool is not able to provide the number of workers that the plants in the area need, even with full levels of employment.
Representatives interviewed indicated that the EI system could benefit from further modernization. They noted that interest in working in the summer and late fall once EI eligibility hours have been achieved makes it challenging from an HR perspective. This results in “a greater likelihood of sick notes” and absenteeism during some of the busier months. It was also noted that those who are on EI can only work a limited number of extra hours in a week, after which the money they earn is deducted from EI payments. This acts as a strong disincentive as claimants can lose money if they work any additional hours.
This was a bigger issue approximately 10 years ago, according to plant managers interviewed. Crab asthma is caused by exposure to the dusts, mists, fumes or aerosols that are generated when cooking, steaming, washing, sawing, crushing, scrubbing or scraping crab in processing plants. During these activities, proteins that are in the crab may be released into the air. Once these are in the air, they can enter people’s lungs and breathing tubes. Some people’s bodies have an abnormal response to these proteins. This abnormal response, called sensitization, can develop after several weeks or even years of exposure. HR issues arise as staff have to be assigned to other areas of the plant, or assigned to process other species (e.g., shrimp).
Employers in the region are trying various approaches to address the challenges with labour supply and retention. Some of these include:
The plant representatives indicated that they put considerable effort into recruiting workers from other areas of the province. This has long been a tradition in Newfoundland with many workers temporarily relocating to the region to work during the seafood processing season. This is promoted through the availability of accommodations at limited or low cost with many families having worked in this manner for years. One plant has purchased homes, converted houses and brought in trailers to accommodate workers from other parts of the province. For one large plant, workers temporarily located from other regions in NL made up approximately 40% of their total workforce for a season.