A STUDY OF EDUC.rtTION ANDECONOl"lI CS INTHE PROVINCEOF1E'wFOUNDLAND AND LAB&DORSINCBCONEBDERATION (1949)
by
Ben-chiehLi u , B.A. (Tai wan)
ATHESI S
submi tted in partial fulfilment of the requirements for the degree of
MASTER OF ARTS
l'1EMORIAL UNIVZRBITYOFNE\JFOUNDLAND July 18, 1965
T his thesis has been examined and approved by:
and
In the study of economic growth emphasis is at present being placed on the development of human resources, in which development the role of education is featured prominently. This st udy is an attempt to~mjlJesome aspects of the role of educat ion in the economic development of this province sine e 1949.
The study examines firstly the basic structure and the gradual di versificat ion of NewfoundlandIs economy. It gi ves a detailed analysis of populat ion dynamics by census division, the rapid gr owt h in school age population and the populat ion distribut ion in this province. The evolut ion of elementary and secondary educat ion in Newfoundland is studied.
'I'h e methods of financing ed ucat ion in the province are also invest igated, while some criteria for educational investment have been discussed. Comparisons between Newfoundland and the rest of Canada intend to show the effects of education on economic growth in Newfoundland. These effects help to interpret the changes in the rate of unemployment, the structure of oc c upat ions, as well as labor incomes.
The most important findings of this thesis are:
i. Although the economic struc ture in Newfoundland is st ill predominately based on the exploitat ion of natural resources, di versificat ion and industrializat ion have taken place.
ii. Despite the great achievement in economic development since Confederat ion the economic development in i~ewfoundland is retarded by a relatively high rate of unemployment, a comparatively poor infrastructure, unfavorably endowed natural resources and lack of skilled labor.
iii. Newfoundland has had the highest birth rate and the lowest death rate in Canada in almost every year since 1949;
th is has resulted in a high rate of po pula tion growth which has aggravated the problems of overpopulation and of unemploy- ment. This has also required a very heavy government investment in education.
iv. Urbanization and centralizat ion have taken place extensively, but a very unbalanced distribution of population in Newfoundland has caused difficult ies in allocat ing social overhead capi tal and the effective use of the capital in some cases.
newf'ound Land has had a comparatively higher rate of improvement in education than in Canada as a whole during the past fifteen years; however, Newf'ound Land still ranks last in almost every field of education when compared to the other provinces.
vi. The Provincial Government has been mainly responsible for the costs of education and has contributed a much higher percentage of the costs than any other provincial government
in Canada; nevertheless, the absoluteamou nt spent on education per student in Ne wf o un dla nd is still very low.
vii. Because Newfoundland has en jo ye d comparatively high rate of improvement in education since Con f e d e r a tion, it has benefited substant ially as shownby the comparat i vely low rate of increase in unemployment, a more rapid absor ption in the high earning occupations, and a faster rate of inc r e a s e in per capita incomes as compared to Canada as a whole.
viii. The relationship between education and economic development is very close in Newfoundland and it is likely that the in co me gap between Newfoundland and the rest of Canada will be bridged as the educational difference between the two is event ually eliminated .
TABLE OFCONT~NTS
ACKNOWL.EJ)G~]\-Ji,NTS LIST OF TABLt.S LIST OF CHARTS
iii vii i
CHAPT.l::.R PAGE
1. INTR00UCTION , .... ... . .... • . .. 1. The r.".otivation of the Study 2. The Scope of the Study 3. The Core of the Study 4. The Approach and Purpose of
the Study
II. THl:. ~CONm,Y OF l'Jb.viJFUU {ULAND....••...• •.. ...
1." The Bconomic Ba ckground and
Structure of Newfoundland A. Resource Industries
a. The Fisheries b. l"orestry c. Mi,ning_~
B. Secondary Indus t ry C. Const ruction u, Tertiary Industry
2. Some Economic Problems in Newfoundl and 14 A. Natural Resources
B. Capital Formation C. Isolated Locat ion and Trade
Orientat ion D. Human Hesources
CH APT~R PAG~
III. POPULATIu NuYNrJ-.:LCS OF N£'.i FOUIW L Ai~ J... . . . 35 1. Populati on Gro wt h inNe wf'o und I a nd 35
1at u r a l Increase
a.
C.
Fopulat ioniVli gr ation The Perspective of Population
Growth
2. Pop u l a t io n Distribution in Newfoundland
J~. Distribution by Census Divis ion a. Distribution in 1951 and
1961 and Fopulation Density
b. Ch a n g e s in the Percentage Uistribution Among Ten Divisions and the Urban- ization inNe wf'o und La nd B. Distribut io n by Religious
Den omination
c.
lJistributio n by Ag e Group48
-I V. Trlt, e,uUCATION OF N.D.d."OU1~ iJ L ril~J..•.•• .•••• .•• 71 1. The State-Denomination.J:',ducation
oy st em 71
2. The School Population 75
i.. The Growth and Distribut ion of Student Po p u lat ion a. General Description b. Growth and uist.ribut.Lon by
Sex and Age Groups Growth and Distribution by
Type of School Attended B. Student Attendance
C. Rate of Retent ion and Drop out
3. The Study of Teachers 101
4. The Study of Schools 113
'fABLJ.:, OF C01~Tt,NTS
1. The Sources and Trends of i,d uca tional Lnveat ment.
A. Provincial Government a. Government Revenue b. Government £<'xpenditure B. Local Support
127
2. ii.llocation of.J.:,ducational Investment 138 A. Jovernment Allocation in General B Government Allocationon
nLementar-y and Secondary Educ ati.o n C. School BoardIs Allocation of
Investment Funds on £lementary and Sec ondary t,d uca t ion 3. The Analyses ofEducat i.o na l
isxpe ndit.ur-e in Newfoundland A. t,ducational Criteria B. Benefit and Cost Analysis C. The Ef'f Lcien cyand Planning
of c.ducat i.o na L .Inv e st.rnent.
149
VI. Sm-IE COrHtUBUTIONS OFl,DLlCATrol~ TO THl!.
t,C01~0I'iY Or N.c,~v'FOUNLJLAD. ... ... .. ... 165 1. t,ducat ion and Changes in the
Rate of Unemployment 167
2. J.:,ducation and Changes in the Occupational Composition of
the Labor Force 177
3. Ed uc atLo n and Changes in Labor Income 188 A. 'l' he Comparison of the hates of
Illiteracy and Incomes B. The Comparison of the Rates of
Increase in Incomes and t,ducational Standards
TABLE; OFCONT1I~TS
CHAPTER PAGb..
v. The Comparison of the r..ducational Levels of the Populations and the ir Incomes in 1961
VII SU1'J"lARY AHDCONCLUS10i~. . . .. ... . . . 204 BIELIOGRAPHY. .... . . . ..•. . . ... . . .. •. . .•• . . 208
i.
I wish tothank the v'iorld University Service of Canada for a scholarship awarded to me in 1963, and for arrangingmy advanced studies at the l',emorial University of Newf' o und La nd. I also thankl'le mor i a l Univers ity for financ i a l support in the form of GraduateFellowships, 19 63-65 . I am greatly indebted to my Supervisor, Dr. N. Hurwitz, Head of the iJepartment of c.conom i.c s, for his patient and constant super v i s i o n , as well as for his invaluable aJ vice. I also owe a par t i c ul a r debt to Dr. P.J. ~va r r e n , Assistant Professor of r:.ducation at b.emoria L University and Chairman of the Hoyal Commi s s i on on c.ducat Lo n of the Government of Newfoundland and Labrador , for h is painstakingand valuable suggest ions. Help was readi l y offered by Mr, B.D .fv..acpherson of the Departmen t of IvJath e mat i c s
statistical tabulation and graphical presentat io n .
I gratefully acknowledge the encouragement and assistance of Dr. F. Copes, former Head of the Departmen t of Economics of r:;emorial Uni vers ity and now Head of theDepa r t me n t of c.ccnomic s and Commerce at Simon Fraser University ; Prof e s s or F. \velch of the University of Chicago; Professor J.C. fvlil l s ; Ivlr. T.F . '.Ji s e , economist of the Fed er-a L Governmentof Can ada and formerly Professor of Ec onorm c s at hemorial Univers i t y ;
Mr. 1. :~JacAllister, Provincial r.c o norm s t; ;'ll'. F.J . Hanley ,
Deputy M.nist er andf\ll'. F. Kirby, Professional Assis tant to Jeputy LVJinister, Department of education, Government of Newf'oundl and and Labrador.
ii.
I highly appreciate the ready cooperation of the staff of the Library of the N"e mor i a l University, the various officials of the Department of Educat ion, Public Finance, and Economi c Development of the Government of Ne wf o u nd l a nd and Labrado r, and those of the 3t. JohnIs Regional Office of the Dominion Bureau of Statistics. I cannot possibly attempt to list the names of all those who have helped me in this study.
To themI extend my sincere gratitude. Although I have drawn hea vily on the knowledge of others, I take the entire responsi- bility for the views expressed in this thesis.
Ben - c h ich Li u
TABLE 2-1
2-2 2-3 2-4 2-5
3-1
3-2 3-3
3-4 3-5
3-6 3-7
3-8
iii
LIST OFTl-l.BL~ S
Ne t Value of Commod it y Prod uc t ion by Industries and Total Perso nal Income from 1cono mi cPursuits in Ne wf o und l a nd Lab orForceof Ne wf o un d l and by Industry ...
Incomefrom eco nomi cPur s u i t s andTr a n s f e r
Pa ymen t s .
A Comparison of Ut il it ie s in Ne wf o un dl a n d
and Cana d a .
Labor Force, Unemployment and Rate of Participation in Newf'o u nd Land and Canada, for Popu l a t ion14years of age and over . . . • Rate of Populati o n,Gr owth, Bi r th and uea t.h
Rate in Newfoundl a nd , Na t ur a l Increase of Popul a t ion for i~ewfo und l a nd and Cana d a ..
Bi r t h and Dea th Rate, and Na t ura L Increase in Canada by Pro v i n c e in Selected Ye a r s . Population Gro wth in Newf'oundLand by
Census Division .
Popu l a t i o n by Census Di v is io n , Tot a l and 0-19Years of Age, for Ne w£1 undland . . . . . Populat ion Distribut ion in Newf o un d l a nd,
~~~~~~~~mDi~~~~;~ur:~~~. ~~~ . ~~~~~ . ~~~~~ ..
Population Density, by Census Division in Ne wfo und l a nd and in Total for Canada ....
Population Distribution inNe wf o und l a nd by Census Division and by Selected Re l i g i ou s Denominati on . . . • Percentage Distribution ofPo pula tionin
Ne wf o un d l a n d by Census Division and by Selected Re l i g i ou s Denomi nation . . . . ....•
PAGe
16
24
37
39 44 46
51 54
60
62
TABLt.
3-9
4-1
4-2 4-3 4-4
4-5 4-6 4-7
4-8 4-9
4-10 4-11
4-12
iv
LISTOF TABLeS
Total Population, School 6nrolment and Percentage Distribution by Educational Level and Sex, for Ne wf o un d l a nd . . . • School Age Populati on and School enrolment
in Ne wf o u nd l a nd by Sex and by Age Group Elementaryand Secondary enrolment in
Newf'cundLa nd by Type of Services . isnr-o Lmerrt, Av e r a g e Daily Attendance and
Percentage At tendance in Newf'oundLa nd Schools ... ... .. . . ... . . • Aver-age DailyAttendance inNe wf o u nd land
Schools by Type of Serv ices .
Percentage of Pupi l-lJays Absence by Cause, for Type of Services in Newfound l and ....
Enrolment by Grade, 1949-50to1962-63and th e Retent ionRate for Selec ted Year s
for Newfound landSchools .
Retention Rates of Students :i:n Newfound l and
by Type of Se r vices .
Per cent.a ge of Pupils whole f t School and Entered Various Occupations, by Grade and Sex, for Newf ou nd l a nd .
"liua l ifica t ions of Teachers and St uden t- Teacher Rat io in Newfoundland . Teachers Classified According to Total
Professional Experience and i\ledian Tenure inNe wf o u nd l a n d . Teacher'sClassificat ions and the Student-
Teacher Rat io by Type of Services for Newfoundland . . . . ... . . • . . . • .
PAGE
64
76 79 83
88
91
93 96
104
107
109
TABLE
LIST OF TABLeS
PAGt.
4-13 Al l Teachers inNewfoundland Classif ied According to Total Professional
Experience by Type of Services 112 4-14 Number of Schools, Classrooms and the
Student-ClassroomRatio in Newf'oundLa n d, . 114 4-15 i'lumberof Schools and Schools Doing wor-k
Above Grade Vlll, and Nu mbe r: of Cla s s- rooms and Students per Classroom by
Type of Services in Ne wf o und l a nd 117 4-16 Schools Classified by Numbe r of Classrooms
and by Type of Services in Ne wf ou n dla nd 119
4-17 Ls ti.ma t. ed Schools, Classrooms, Populat ions
5-19 Yearsof Age and Ratios of Pop u lat ion5-19Years of Age to Ever y Classroom , by Census Div is ion and by
Type of Services , Newfoundland 121 5-1 GovernmentCurrent Account Revenue of
Newfound land by Source, 1951-52, 19 56-57 and 19 6 2-63 .... . . .. . . .... ...• .. 129 5-2 Government Revenue and r.xpend Lt ur-e of
Newfoundland by Current and Capi ta l
Accoun t 130
5-3 Pro v inc i a l Government Expenditure in
Newfoundland , by rv:ajor Area 132
5-4 Local Sources of r.xpe nd i.t ur-e.on Elementary and Secondary Ld uca tio n in Newfoundland 137 5- 5 Current and Capita l Governme ntEx pen d i tu r e s
on Ed ucatLo n for Newf'oundLa n d in Se le c ted
Years by Area 139
5-6 Governme nt Expenditure on Lducat ionby Cur re nt and Capi ta l Accoun t in Cur r e nt and Constant Dol lar for Newfoundla nd. . . . .. . .. 140 5-7 Government Expe nd Lt ur'e on LLemen tar-yand
Secondar yEducation for Newfoundla nd . . . . 143
vi
LIST OF TABLDS
TABL1 FAG.!!.
5-8 I,,ajor Areas of Government Expenditure on Elementary and Secondary .education for Ne wf o u n dl a nd •... . .. ... . . ... .. ... . .... 147 5-9 Government bxpenditure per Student and per
Capita Personal Disposa ble Income for
Newfoundland •.. ... ... .. . ... . . • 155 6-1 Numb e r- and Rate of Unemployment in
Ne wf o und l a nd and Ca nad a by Occupations •. 16 8 6-2 Ldu cat i.o na L Classifications of the Labor
Force in Ue wf ou n d l a nd and Canada 171 6-3 Numb e r and Rate of Unemployment in Ne w-
foundland and Canada by Age and Schooling of Labor Force, 1961 ... .. . . •• 174 6-4 Composition of the Labor Force in Newfound-
land, by Occupations , Sex and Schooling in 1951 and 1961, and by r.a r-n Lng s in1961 18 0 6-5 The Labor Force in Newfoundland , by
SelectedOccupations and by zd uc at.Lona L Levels . . . .•.. . ... . ... . ... . . . .. . . 184 6-6 Growth in £ducatio na l Levels, Populations
and Personal Incomes in Newfoundland and Canada .... .. . ... ...•. . . .. 191 6-7 Number and A.verage Income for the Non-Farm
Population, Fifteen Years of Age and Over , by Sex and Schooling , Newf undLa nd and Canada, 19 6 1. . . .. . . 193
App endix A:
lJet Value of Commodity Production in
Newfoundland , by Ind u s try 29
Percentage Distribution of the Net Value of Commodity Production in Newfoundland , byInd u s t r y ... . . . .. . . . •.. ... . .. .. .. 30
vii
LISTOF TABLbS
TABLl!. PAG~
Distribution of Personal Income in
Newfoundland .. . . .. .•... 31 4 .li.mp lo yees Reported by IVi8.i n Industries
in Newfoundland . 32
Total Personal Income, Total Personal Dispo sable Income, and per Capi t a Personal Income in Ne wf ound l a n d and
Canada 33
6 Per Capita Personal Incomeand Per so na l Disposable Income in Ne wf' ou ndLand and Canada in Constant Dollar of 1949 . 34
Appendix B:
Calcu lat ions of Populationfor Newfoundl a nd in 1951, 1956 and 1961, and for Ca nada
in 1961 ..§$-
Lst.Lrnated Population in Newfound l and ~
Appendix C:
istimated School ~nrolment in Newfoundland . 124
~st imated Secondary School t.nrolment in
Newf'oundl.and 125
Appendix D:
A IVleasure of Lxt.r-aInput-Output Rat io of
Ed ucatLonaL Investment 160
D- l D-2
Total Number of Students inNe wf oun dl a nd .. Expenditures on nd ucatLc n in Newfo un d l and .
.Appendix 1:
163 164
A Measure of Returnson Human Ca p i t a l ....• 200
.to- I The Labor Force inNe wf o un dla nd, by Sex and
by ~ducational Level, 1951 and 1961, and Average .t.arnings of the Labor Force in 1961 203
CHART 2-1
2-2
2-3 2-4 3- 1 3-2 3-3
3-4 3-5 3-6 4-1
4-2 4-3
4-4
vii i
LIST OF CHARTS
Net Value of Commodity F-roduction in
Newf ou nd l a nd .
Proportional Distri b ut ion of Ne wf'o und la nd La b or Force in Selected Industries Rate of Unemployment in Newf'o und La nd and
Ca na da .
Per Capita PersonalDispo s a b l e Income Newfoundland and Canada .... .. . .... .• . . . . Birth and uea t h Rate -- Newf'oundLa nd
and Canada •... .. ... ... .... . . ... .. . Po pu l a tion Gr owt h and Di s t r i but i on in
Newfoundland by Census Division . Population Density and Urban Populat ion
Distribut ion in Newfoundland by Censu s
Division , 1961 .
Percentage Distributio n of Population in Newfoundland by ReligiousDenomination ..
Population Structure in Ne wf'o undLa nd by Age Group ....•... .... . . • . • . . . Percentage Dist ri butionof Population in
Newfoundland and Canada by Age Group •...
Total Populationand School c.nr-oLme nt in Newfo undland •... .. •... . • . . . ...•
Per-cerit a ge Dis t ribution of School .t;nro lme n t in Newfoundland by Type of Services ...
Retention Rates in Newf'ound.Land Schools 1949-50 to195 8-59 and 1954-55 to
1963-64 .
Occ up a tio nal Distribut io nof th e Stude nts who le f t School in 1957-58 for .t.mpl oyme nt, by t.ducationalLevel and Sex, l~ewfound-
land •... . . .. •.. •.. ....•. ...•. ..•.. ...
PAGli.:
11
13 26 28 40
56 61
65 66
77 84
94
99
ix
LI ~TOF CHARTS
CHART PAGE
4-5 '';'ua l i f i ca t i o ns of Teachers in Newfo un d l a nd. 105 4-6 Student-teacher Ha t i o s in Newf'ound Land by
Ty pe of Services 110
4-7 Nu mbe r of Schools, Classr ooms and the
St udent Classroomrtatios inNewf o und l a nd 115 4-8 Percentage Distribution of Classrooms in
Ne wf o und l a n d by Type of Services • . . . 118 4-9 Population 5-19Yearsof Ag e and the Ratio
of Population5-19Ye ar s of Age to every Cl a s s r oo m inNewfo und l a nd by Census
Division, 1964 123
5- 1 Proportional £Xpenditures of the Newfound - land Gov e r nment, by If,a j or Area 133 5-2 Government Expe nd i t ur e on r;ducation by
Cur r e nt and Cap it a l Account for Ne \'1f o un d-
land . 141
5-3 Expenditur es on r.Lement.ary and Secondary .l!.ducat ion for Newf'oun d La nd 144 5-4 ka j o r Areas of Gover nment E.xpenditure on
tlementaryand Seconda r y .c.ducation 148 5- 5 Indexes of Gov ernment Expendit ure per
Student and of per Capita Personal Disposable Income, in 1949 ollar
Newfoundland 156
6-1 Percentage Distribution of LaborForce in Ne wfo u nd l a nd an d Canada by 1ducational
Level 172
6-2 Fe r c e nt age Distribut i on of Un emp l oyme n t in Ne wf ou n d l a nd and Can a d a by Educa t ional
Levels 175
x
L:hT I..)F CHA1.TS
PAGE tS-J Ln.bor Force \1tt~1Ssconc(.:cry 2duc2.tj.o n an d
Ab0v ~3an d AVGl'2.f::, c2'J.rn~ngs in lJG1'Tfouncl- 1"..no1 by Sex 2nc Sol.:; c t c c1;)CCU;J3.t:.onsI 1<;61 181 6-4 P::rconta..; :;D:i.st:cibut:i.onof tho LaborForce
in Nowf'ounr' Land by EducC'.tion?.lLcvcLan d by ScLoct.ed )Ccu\)~.tions •..•.. . ,.. . . ... 185
6-5 Aver-a ge InCOi~lG for the Eon-L:'HJPOi)ul::ction
15Y3 2.rS of Age and .ivcr , by Se x .xn d
Schooline, Ncwf' ou n d Landan d Ca nadri, 1,;61.. . 194
A Govor nmerrt of ~ro1Jfoundlen d -- Dapartmcnt of Education •. • • . ....• .... •.. • . . • • • •.••. • 74
CriAPTJ:.R I
INT ROu UCTIO f~
1. The ~"iotivationof The Study
The emphasis on the role of education in the growth and progress of an economy has been stressed for a long time. Education accelerates the accumulati o n of human capital which is of importance in achieving the industrialization necessary for economic development and for increasing the national income per capita. It is a truism that the development of education is similar to the build ing ofa py r a mi d : the deeper and wider t he base, the taller and larger the building. Good elementary and secondary educati onal programsare the foundations for vocat ional and university education; togeth er they enhance huma npr ogr-eas , rr.aterial l yand spiritually.
The elementaryand secondary educat ion along denom- inational lines in Newfo u nd l a nd and Labradorl is different from that in any other pro v in c e of Canada. The economy of t he province also differs greatly fromthat of the rest of Canada. Ne wf o und l and has the lowest p~r capita income in Canada: the low educat ional level of the people has been partly the result of its poor economic condition, which in turn has prevented rapid gr owth in education. The relationship between
1. Al t h o ug h the official name of this Province is Newfoundland and Labrador, the name of Ne wf o un d l a nd only will be used throughout th is study whe n referring to the province.
2.
economic progress and educational development is the principal obj ect of this research.
2. The SCQ:e-.e_.Qf--l'h~ St~
Confederation with Canada in 1949 was a turning point in the history of Newfoundland. This union was the beginning of an unprecedented economic upsurge in the province.
Since Confederation, Newfoundland, helped by the large financial aid of the Federalfro v e r nme n t as well as through its own effort s, has substantially improved its educat ion and economy. Previous to 1949 there had been no comparable improvement. Thus the study will be concentrated on the post.
1949 period.
3. The Core of The St~
This study deals firstly with "he basic structure of Newfoundland's economy, and the factors which have retarded and are still impeding the economic development of Newfoundland.
The most important factor in any study of education and economic development is obviously the population;" this is analysed in detail in Chapter Ill. Chapter IV studies the development of the elementary and secondary education, with particula.r emphasis on the school population and educational facilities.
The financing of education is described in Chapter V. Chapter VI purports to show the function of education in the province's economic development.
3.
4. The Approach and Pur p o s e of The St uqy
St a t i s t ical data and other informat ion from published official sources are widely used in the study. These were ob t a i n e d from the Domi ni on Bur ea u of Statistics; theDe pa r tm e nt of Pu b l i c Financ e of the Fed e r a l Government; and theDepa r t men t s of cd ucati.o n, Publi c Finan c e, and economic 1Jevelopment of th e Prov inc ial Cove r nmen t . Peo p l e with specialized knowled ge were also consulted.
In certain se cti o ns th e study co mpares uewf'ound Land with the rest of Canada , and emphas izes the changes which have taken place since Conf e d e r a t ion. It ishop ed that the study will be of someuse in helpin g to pl a n an efficient educational service which may speedily accelerate econ omicdevelo pmen t in t he Province.
4.
CHAFTb RII
1. The Economic Ba c kcrro und and St r uc t ur e of Ne wf o u ndl a nd The Pro';i nc e of Newf'ound .Land and Lab rad or is an area comprisi n g 147,9 94 square miles on the .t.ast Coast of Can ad a . Ne wfo und l a nd is an island locat ed in the Nor t h e r n At l a n t i c Oc ea n , while Labra d or is pa r t of the Cana d i a n main- land. The island has for cen t ur ie s been a link between the two gr e a t e s t ind ustrial centers in theworld, Nor t h America a nd We s t Europe; yet it is not it selfhighly industrialized.
The major natural resources of the province are the fisheries, forestr-y , minin g and hy d r o-e l ec t r i c potent ia1.
The economic growth of Newfoun dl and seemin gly wi l l depend the continued development of those resources. Tables 2-1 and 2-2 , whic hare in terms of productionand employment, outline the structure and growth of Newfo und l a ndIs econ omyover the last two decades.
A. Resource Industries a. The Fisheries
Until the end of th e nine te e n t h century, the econo mic life of the people of Newf'o un d .L a nd ha d been closely connected wi th the fishi ng ind ust ri es. "Sin ce then the pr e d omi na n t place of the fisheries has dimi nished andNe wf o und l a ndIs economy has bec omemore divers ifi ed. In 1951 the fishing industries produced 14.1 percen t of total net value of commodity product i on
5.
TABLE 2-1
rRT VALUS OF CO!'lI,lODITY PROrlh TIQ['!BYpmUSTRTES AND TOTAL PE?,s8'JAI, INCOMBFROM~CONOMICPURSUITS IN NE' F'JUl" DLAND
1951 AND1961 (in thousands of' dol l a rs )
1951 1961 1961 as
a per- Amount Percent Amount Percent cent a ge
of total of total of1~51
:-Je t Value of Total
CommodityPr o duc t i on 145,850 100.0 261,637 100.0 179.4 1.ResourceIndustries 107 , 95 2 74.1 137,1 81 52.5 127.1 a.Forest industriesLogg i n g and forest 62,126 !t2. 6 60,316 ~ 99.7
servi..ces 26,597 18.2 20,265 7.7 76.2
Sawmilling 1,354 0.9 826 0.3 61.0
Pulp andpaper
production 3)J,175 23.5 39,225 15.1 llh.8
b.Fi~h ingindustries 20, 531 14.1 23,066 8.8 112.3
Fishing 13,500
9:3
lu,922 q 110:5Fish pr oce s s i n g 7,031 4.8 8, lu4 3.1 115.8
c.Tranping 46
d.Mi ni ng 25,295 1..1...Jl 53,753 ~1' 212.5
2.Secondary11a nufa c t ur i ng 10,13 0 6.9 21,815 8.3i 215.4 1.Other Commodity Production 27,768 19.0 10 2, 6/.1 39.21 Yi9.6 a.'Sl e c t r i c power' 2,668 1.8 10, 7 25 4.1
t
402.0b.Construction 25,100 17.2 01,916 35.1 366.2
Total PersonalIncome from
EconomicPursuit s 181,000 351-t,000 195.6
Sources: 1. DominionBureau of Sta tis tics, Survey of Production,
~2.26-57 ~_n~!?~.
- --- - - - -- -
2. Dominion Bureauof Statistics, Na t ion al Accounts,
!!:c.<Jm~~E1~Expendit~~,1 °56~~-~~- -- 3. See Appendix A,Table.:; 1 and2.
Note: Thisfigure includes people enga gedin trapping. However , accor dingtothe dat agi.venby the Federal Department of Fisheries and othe r Dominion Bureau of Statistics information, tb is figuresh ouldbe 22, 000.
Source: 1. Ca l cul a t e d from DominionBur ea u of Statistics data,Census
~~~E..a~,195!~~1961. - ----
7.
in Ne wf ou nd la nd. ~19 61 thi s per cent. age shr a n k to 8.8 percent. The gradual de c l i ne in the net val u e of commodity productio nof th e fishing ind u s tri es is due lar gely to the outd a t ed tec hn olo gy ado pt e d by Newfound l and e r s whic hdoes not enable themto compete with oth e r s who pos sessmor e modern techniques. Thus Newfo u n d l a nd ' s fishin g industries have suffered, both in quantity of landin g and in pro c e s s i n g effi cie n cy, bec a us e t.h ey are not highly me c hanized to exploit this "common property" resource.
Th e fishing industries, howeve r , still employ a great proportionof the total labor force. In 1951 and 1961 employees in the fisheries comprised 20.1 percent and 11 percent of the labor force respectively. Ac co r d i ng to the information of the Fe d e r a l Department of Fisheri e s, the numberof people engaged in the fishing industries in 1961 was 22,000, which was approx- imately la,00 0 more thanth e Ca nad ian Cens u s figure given in Table 2-2. It is said that fishermen illthe province did not report their occ up a t ion adequately in the Ce n s us invest igat ion in 1961. Howeve r , this la rge la bor fo c e pro d uc e d comparatively lowpercent a g es of the ne t val u e of commod i t y pr od u c t i o n (see Table 2-1 ). Thi s in d ica t es the in e ffici e ncy of the industries , as well as the largereservoir of "disguised unemployment"
within th e fisheri es, esp eciall y the ins hor e fishery.
b. For e s t r y
Th e forest industries as sumed grea t e r importance in
8.
the Ne wf' o u nd La nd economy with the est&blishment of two pulp and papermi l l s in the early part of this century. The Anglo- Nev-Ifoundland Development Company Limi ted be ga n product ion at Grand Falls in 190 <;,and the Bowater's Ne wf o u nd l a nd Pulp and Paper l\,ills Limited commenced operation at Cor n e r Brook in 19 25. In 1951 the two mills accounted for about one-fourth of the net value of commodity production; and forest i nd ustries ac counted for 42.6 percent (see 'fable 2-1) . Of the 15.7 percent of the labor force working in the forest industries in 1951, only 4.3 percent or 4,600 people were working in the two mills (see Table 2-2) . A decade later, in 1961, the forest industries could not hold first place in terms of net value of commodity production, because output in t he two mills increased only slightly. Also, sawmilling and logging product ion declined, while output of some other industries, especially construction, increased rapidly. In that year forest industries contributed 23.2percent of the ne t value produced by the pr o v i n c e , while employing 10.4 percent of total labor force.
r..i n i ng
Among resource industries only mining has raised steadily its relative position during the past decade. Its percentage of the total net value produced in 1961 amo u n t e d t 0
20.5 percent as against 17.4 percent ten years earlier (see Table 2-1) . This may be attributed to foreign investment ,
10.
rate of expa nsi on ha s bee n partly due to Conf ed er a t i o n , because Newfo un d l a nd ha s gi v e n up its inde pe ndent authority to impose duties on import good s , whichha v e taken ove r most of the markets in New fo un d l and. A dozen or more of manufacturing firms in Newfo und l a nd were forced to cl o s e immediately following Confederation;2 and a notewort hy result has been the wi thdrawal of close to 2,000 people from secondaryenterprises between 1951 and 1961 (see Table 2-2 ). Furthermore, the meagre supply of local raw materials is another disadvantage.
C. Con s t r u ct ion
The construction industry has expanded rapidly since Confederation. Cons truction of roa ds, buildings and other public utilities ha s be en mainly financed by the Federal or Provincial Government. 'I'his has cr e a t ed social capital in Newfoundland as well as many empl oyment opportunities which have generate d a gr e a t deal of labor inc ome. In 1951 the cons tructi on ind ustry ran ke d third after forestryand mining in net value of production by contr ibuting 17.2 percent. By 1961the construction ind u s t r y a c counted for 35.1 percent of the net value of commod it y production; thereby becoming the most important single industry inNe wfo u nd l a n d (see Table 2-1). Despite its extraordi nary in cr eas e in product ion, there has not been a corr esp ond i ng pe r c en t ag e increase in the labor for
2. P. Copes, St. Joh nIs and~wfoundland, An Economic Survey, The Newfoundla nd Board of Trade, 1961, p. 110.
9.
especially in Labrador where the mining industry has been absorbing an unprecedent ed amount of fore ign capital.
Approximately~250million were provided for financing the via b us h iV~ine s Pr o j e c t in1962.1 The prosperity of the mining ind ustries in Labradorha s not only brought about industrial momentum, but has also spurred employment in Ne wf ou nd l a nd even t.hough mining exploitation is capital intensive and therefore does not use a great proportion of the potential labor force. It used 3.5 percent and 3.8percent of the total labor force in 1951 and 1961 respect i vely (see Table 2-2) . The mining industry encouraged inter alia the building of roads, the provision of water and power supplies, and the establishment of communities, which are cons ide red "external economies" to other industries.
E, Secondary Industry
Besides pulp and paper and fish processing, only a few sec ondary enterprises are found in Ne wf ou n dl a nd. The net value of these enterprises increased f10 m6.9percent to 8.3 percent between1951 and 1961 (see Table 2- 1 ). Thus their development has been very slow, a lthough they contributed nearly as much in 1961to the net value of production of the province as did the fishing industries. The relatively slow
1. The Sunday Times, "Tnd ust.rLa L Growth opurs .l!.mployment in Nf' Ld.,II Newfoundland Supplement 1963, p, 23.
11.
CHART 2- 1
NET VALUE;OF COjliJMODITYPHODUCTIONIN NEwFOUNDLAND 1951'1'01.961
[VIi l l ions of dolla r s
300 - - - -
250
200
Con st ru ction and Ele c t ric Powe r
100
50
~~ing and Trappi.ne; Indust~_s ________
Forest ry Indus t rie s
1951 ]952 1953 1954 1955 1956 1957 1958 1959196 0 1961 Year
Source: Ap pend ix A Ta ble 1
12.
cons t r uc t ion purp o se s. Betwe en 19 51 and 1961 employment in t his industry rose from 6.8 percen t to 8.5 perc ent of the total lab orforce. Are l a tivelyhigh prod ucti vity of labor inthis industry has th erefore beenachiev e d.
U. Te r t iary Ind ustry
Wi t h the de vel opme nt of an eco no my , service industries naturally become important . This iscl ea r l y shown by Table 2-2 . In 1951service industries in Newfo und l a nd , including trans- portati on and commun i ca t i o n, trade an d finance, gov e r nme nt service sand ot.her' se r vi c e s, tog eth er empl oyed 43.6 percent of the total lab or force . In 19 61 workers in these industries con s t ituted 58.7 per c en t of the total labor force. Transportat ion and trade playe da signifi c ant rolein the distribution of the products in th ede ve lop ing economy.
It is believed thatthe tourist enterprise inNew- foundland is one of the potentialt.er-ti.ary industries which can be sig nifica ntlyde vel oped, be ca us e itdoe s not entail heavy fixed costs, a highlyadv anced technology nora willing- ness to assume gr ea t risks. The sameapplies to the foreign fleet services suchas repairs and supplies.
In su mmary, either fr om the po int of view of commodityprod uction or of lab or forc e di stribut ion, Newfound- landIS ec onomy is ap pa re ntlybeco mi ng divers ified, and decreasing its hea vy reliance on natural resources exploitation.
CHART 2- 2
PHOPOHT I ONAL DIST RI BUTION OF NC;WFOUNDL ANDLABOR FORCE IN SELE.CT€lJ INDUSTRIES
1951 AND1961
13 .
19 51 1961 Ind ustri e s
Fores t ry Fish i ng and
Trap p i ng
jV1ine r a l
rv:a nufa c t ur i ng
Cons t r u c t i o n Transpo r t a ti on and
Commun i c a t i o n Whol e s a l e and
Re tai l
Commu n i t y Services
Go ve rnm e nt Se r v i c e s
Co mmerc ia l Services
I I
I ~ I(
1 I
l
I
I ]
B
I~ I
1
I1 I I
I I
1
I I
l
I. I1
I III II I
1 I
1 - - - -- I
I I
I I
I II I
I I I
l
II II0 5% 10'10 1);0 2010
20.4"
Porc enta r;eof 'L'otn.l
So u r c e : Table 2-2
14.
Sec ondary industries are developing slowly due to the absence of tariff protection for the infant industries, and lack of raw materials. By comparison, the construction and tertiary industries have been developing fairly rapidly during the past decades.
2. Some iconomic Problems in Newfoundland
Ne wf ou nd l a nd has basically the same economic problems of underdeveloped regions; these problems are discussed in some detail under various headings.
A. Nat ur-a L Resources
Besides the fi sheries, forests, and metals, Newfound- land has few additional natural endowments. It is the only province in Canada without a significant agricultural industry;
its agricultural production is not measured by the Dominion Bureau of Stat ist ics (D.B.S.). The disa bili ty of Newfoundland's agricut iure results from acid and rocky( soils and unfavorable climate. The role which natural resources play in the economic development of any country is not as important as it was in the last century; but, agriculture is st ill deemed th e funda- mental industry which must be developed before any achievement in industrialization is possible. Professor Lewis asserted that:
"In unen.l i.ght.ened circles agriculture and industry are often considered as alternatives to each other. The truth is that industrialization for a home market can make little progress unless agriculture is
15.
progressing vigorously at the same time, to provide both the ma r k e t for industry, and indust r y 's labor supply. If agriculture is stagnant, industr y cannot grow.113
On the other hand, there are abundant unused nat ura l resources in Newf ou n dl a n d such as th e Churchill Fal l s whi ch can be exploited for the generating of electricity, and lar g e untapped forests in Southern Labradorcapable of produc ing forty million cords of pulpwood.4
B. Capi tal Formation
There has always been a lack of domestic capit a l in Newfoundland: there are few large enterpr ises which wer e e sta blished sole ly with domestic capital. Because personal incomes were at a very low level before Confederation, th ere was little net sav ing and hence little pr i vate in v e s t me nt.
Newfoundland had little reliable data of per capita perso na l income previo us to 1949. In that year Newfound land ' s pe r capita personal income was ·$4 72 or one half of that of th e Canadian average (see Appendix A, Table 5). Its cost of living was usually 20-25 percent higher than that of th e Canadian mainland.5
3. Ii.A. Lewis, Report Q.QIndustrializationand .t~ Gold Coas.t, Government FrintingDepartment, Accra, 1953, p.3.
4.
5.
F. Copes, ~c i t., p. 82. Ibid. , P• 138.
16
Since Confederation a great deal of Federal transfer payments, equal to one-fifthof Newfo u nd l a nd's domestic income earned in 1963, has flowed into the province everyyear. In addit ion, Ne wfo un d l a nd ' s tot al incomefrom ecanomie pursuits has trebled since Confederati o n. The fo l lowi n g figures sh ow these changes:
TABL.t.2-3
Il~COk .2, L~Ol' _~CO I', O]\.I C PURSUITS ANDTR At~SF ~ RPAY1Vl~NT ;)
(in mill ions of dollars) Total in come
from economic Growthof Year pursuits index no.
(1)
194 9 142 100.0
1956 261 183.8
19 63 414 291.5
Federal
transfer Growthof payment s index no.
(2 )
19 10 0.0
46 242.1
85 . 447.4
0.1 3 0.18 0.21
Source: Appendix A, Table 3.
However , these increased incomes have not led to sub s t a nt i al savings and investments by ind ivid ua l earners. An unparal leled natural growth of population in Newfou nd la nd
co mpa r ed to other provinces of Canada has offset co nsid erably th e in c r ea s e d incomes; and the higher costs of livin g in New- foundland have discounted the incr eas e d incomes as wel l.
17.
Therefore, real income per capita inNewf'o undl a nd has lagged much behind money incomes. It has increased only 49 percent between 1949 and 1963 (see AppendixA, Table 6), compare~
with the increase in money incomes as shown in Table 2-3. Besides, the income elasticity of demand for commodity among Newfoundlanders is relat i vely high, part icularly for impo r t e d goods. For instance, the number of registered motor vehicles per thousand pe op l e was 34.3 in 1955 and it was 161.9 in196 1 (see Table 2-4), while the Cana dianaverage only doubled during the period. This is due pa r t l y to the vital dependence of Newf'ound Land on trade::with outside provinces and countr ies , and partly to some effects of demonstration on consumption.
Owing to the high marginal propensity to consume coupledwith the vulnerability of the Newf ou n d l a nd export markets, private capita l forma ti o n has been low compared with the average of Canada.
Since Confederat ion the Prov incial Government of Newfoundland has been tremendously assisted with Federal G'r an t s for inv e st me n t in social capital. Of the to t al Prov in c ial Government expenditures of41>1 0 4 million in 1964, 58 percent was provided by th e Government 0f Canada.6 with such huge financial assistance public capital formatio n accelerat ed
6. Government of Newfoundland and Labrador ,
~~!:. Sp ee c h, 196 4 , pp, 1 and 31.
18. TABLE 2-4
A COI'1PARISONOF UTILITIES IN NEhFOUi<JDLANDANDC~<JADA 1955 AND 1961
Total Per thousandpeopl e
1955 1961 1955 1961
!~nd. Canada Nf'Ld, Canada Nfld.Ca na da Nf'Ld,Canada
Hiles ofSurfaced
Road 2,270 200,000 lJ,275 291,303 5.6 12.7 Number of
Register ed
~1otorVehicles 13,9P12,2°0,62R 7h,1l9 C:;,771~,P103Lt
.'J
1L5.9 161.9 316 .6Number of
Telephones 33,2061', 151 ,1S7869,7776,329 ,44882.026l,.5 152.Lt 3h7.0 Numbe r of
Hospital Beds 1,~L4 83,564 1,730 100,506 L.5 5.3 3.8 5.6 Elect ricPOHer
Requi.r-emerrt/' 207 12,536 294 IP,,972 0.5 0.8 0.6 LO (1 ,000ktLowa t.t )
TotalResidential Building
~~~:~~)tion 25,0001,813 ,00033,q nO2,Oh4,0?06L6115.5 7Lt.0 llL1
Number of Teache rsb
Notes:
2,865 101, 951 lJ,505 17h,9643LO 36.5 33.3 39.8
Figures represent the peak load of firms.
For elementaryandse con dary schools , per 1,000 stud ents. Sour ce: 1. DominionBureau of Statistics,Statistics of Tran spo r ta t ion ,
Public Utilities, Hospital ,Cons-trucllonandEduca~
~9~~to"6~ ---- -- - - .-- - - _...-
19.
dur-Lrig the past fifteen years. The {~215million spent roads since 194 9 is equivalent to nine times the tot a l road expend it ures in the fifteen years prior to1949. Capital expenditure
expend it ure
education amounted to some ~1 00million, and public health wa s almost .;;>200 millionwhic h represente d rraLn.Ly the costs of buildin gs and the running of hospitals. Totalex penditure on education since Confedera tion wa s seven times the totalamount spent for the fifteen year s prior to1949. Si mi lar ly, public heal t h expenditure was eigh t times mu c h.7
Despite the large amount s spent on social capita l a great deal in this field ha s still to bedone. The only tran s- ins u l a r a Ll.-weacher- hi gh wa y is not yet completed. Part of th e so ut h coast of the province has no roads. In 1955 the ratio of miles of surfaced roads per thousand people in Newf'o undLa nd was 5.6 and in Canada it was12.7; in1?61 the corresponding figures were 9.:3 and 15.9 . InNe wf ou nd l a n d total resident ial construction was o,p61,600per thousand pe op l e in 1955 as compa red
with ~~1 1 5 ,500 for Canada. In 1961 Newf ou ndla nd inv e s t ed
:~74,000 per thousand people in residential construction in
comparison with iIil l l,000 for Ca na da (see Table 2-4 ).
Compar-ed with the Canadian averages Newf'ound Land
7. Government of Ne wf o u ndla nd and Labrador,
~ . ,
pp. 14, 17 and 20.
20.
lags far behind in the provision of public facilities and services. Between 1955 and 1961 the number of telephones per thousand people in Newfoundland increased from 82.0to 152.4, while in Canada as a whole it rose from 264.5 to 347.0 . LLectr Lc power requirements expanded from 500 kilowatts to 600 kilowatts in Newfoundland as against an increase from 800 kilowatts to 1,000 kilowatts for every thousand Canadians. During the period the number of hospital beds in Canada increased from 5.3 to 5.6 per thousand people, while in Newfoundland it dropped from4.5 to 3.8 . The number of teachers per thousand student s increased from 31. 0 to 33.3 in Newfoundland, in contrast to the increase in the Canadian average of from 36.5 to 39.8 during this period (see Table 2-4) .
Professor Rostow stated that:
"The point of substance is that the preparat ion of a viable base for a modern industrial structure requires that quit e revol ut ionary changes be brought
~~~r;li~v~;~e~~n~~~~~~i~i~;s~e~~~~~{ya~~i~~~~~~~r~~~8
In Newfoundland these defic iencies in social overhead capital and public services are a serious obstacle to economic development. They tend to raise the costs of production and d istribut ion, hinder the development of human and nat ural resources, retard urbanization and labor mobility, block the entrance of new industries, and restrict the expansion of local
8. w.v«, Rostow, The Stages of~conomicQrowth, Cambridge University Press, London, 1960, p, 25.
21.
enterp rises. All in all , they do not provide exte rna l economies nor do they create an "investment climate," becaus e social capital, if it is sufficiently and properly al located , generates investment opportunities in other industr ies.
In summary , Newfoundland is confrontedwith the urgent task of modernization. It desperately needs the necessary capital, both private and public, for expans io n and s usta ined growth of its ec anomy.
C. Isolated Locationand Trade Orientation r.conomiceLLy, Newfoundland is unfavorabl y locat e d for re gi onal dev e lopment. Theo re tica l ly , a re gi o n is ideally loc a t e d when it has good access to local and fore ign ra w materials and markets, which enable it to produce cheaplyand market competitively. The isolationof Newfoun d land fr om the industrialmainland results in heavy tra n s p or t atia n cos t s. Again, Newfoundland has to rely heavil.on imp or t e d consume r g ood s: 90 percent of food marketed in Newf ound La nd is produc e d elsewhere.9 Besides , there is a limited demand for the primary products of Newfoundland, thereby limiting their expan s ion. Newfaundland exports one half of its total product ion (by value), and more than 90 percent of it s exports a cc ounted for by forestry, rnini.n g and fisheries.10 Al l these
9.
10.
P. Copes, ~., p. 16. Ibi d., p, 97.
22.
factors cause an unfav ora ble ba l an c e of trade with otherregions and adverselyaffect the eco nomi c devel o pment of the province.
Pr of e s s or f".y r da l points ou t inhis famou s "backwash effect" that:
"Econ omic de v e lo pme n t is a pr o c e s s of circular and cumulative causation which tends to award its favors to those who are already well endowed and even to
;~;~~~st~~a~f~~:t~a~~i~~o~~h~~~.~1£pen
to live inf\tli g r a t i on , capitalmov eme n t s and trade are me a n s through which the cumulative process of economicdevelopment evolves, but this cumulativ e proc es s is likely tobe accelerated in a developed regi on and slowed downin a backward one affected by those factors. "In general, if they have pos it i ve results for the former, theireffects on the latterare negative.,,12
D. Human Resources
The quality of its po pulati on is vitally important for the economic de v e l op me n t of Newfo un d l a nd. Economic develop- ment is considerably dependent on the attitude of the people, the creati on of gr ea t e r inc o mes and opp or t u n i t i e s , the striving after better standards of l ivi ng, and the effect ive applicat ion of capital and knowl ed ge to pro d uc t io n.
]Vli s s v,ar d said, "It is by our ideas, we change the way we live, the way we or ga n i z e society, the way we manipulate
11. Gu nna r 1Y'y r da l , E.con omic Theory and Qnderdevel~
~QQ..§., GeraldDu c kwo r t h and Company, Ltd., London~. 27. 12. Ibid., p. 27 .
23.
material things.rl13 It is averred that Ne wf o u nd l a nd lags behind ma ny of the Canadian provinces partly because the people have a 1ifferent philosophy of life and different value concepts which are not co ntributingsignificantly to its economic development.14 These are aggravated by the isolation of the rnany scattered settlements inNewf ou nd l a nd. Also, the lack of entrepreneurs and of an efficient middle class appears to prevent rapid ec onomic growth.1 5
Furthermore, structural and disguised unemployment have accentuated the problem of wastage of manpower, which in t urn is intensified by seasonal unemployment. The numbers employed and the participation rate of the labor force in Ne wf o u nd l a nd compare un:favorably with the Canadian average (see Table 2-5")• In 1949 NewfoundlandIs populat ion was 2.6 percent of that of Canada; but its labor force was only 2.2 percent of the total Canadian labor force. The latter represented NewfoundlandIs highest percentage between 1949 and 1964. In 1949, 9.6 percent of the tota unemployed people in Canada li ving in Newfoundland; in 1964 it was 7percent. The rate of unemployment in Newf'o und Land is usually three times
13. Barbara Wa r d , The RichNa t ions and The Poor Nat ions, ii.Iv. Nor t o n and Company,
---me.,
NewYo~ f9b2~14.14. Richard J. Ne e d ha m, "I'he Happiest Canadians,11
inM=tc l ea n s , October, 1964.
15. P. Copes, ~., pp. 47 and 55.
LABOR FORGE,UNEHPLOYMG'NTAND RATE OFPA RTIGIPATTONI N NE\','FOU'IDT,AIlDANOCANADA,FCR
19b9 ~~~ 9,536 113 5, 156 ~~ l!,6 119.6 5b.l ~~:~ 2.8 2.6 2.2 i:~
1950 9,581 99 5,Ob8 306 b3.6 52.7 6.1 2.6 2.0
1951 226 ?,671 97 5, 101 13
~~ b2.9 52.7
~H
3. 3 2.6 1.9 7.71952 230 9,870 97 5, 177 10 ~;:i ,2.5 ~:~ 2.6 1.9
t~
1953 235 10,088 92 5,2b6 12
j~ 52.0 ~:~ 1.8
195b 2bl 10, 316
~j 5,3"3 12 36.1 51.8 ~U 5.8 1.6
1955 2"6 10,531 5,I,b7 1,03 37.8 51. 7 7.b 2.6 1.7
1956 250 10,731
~~
5,605 13 258 3R.h ~2.2 i;:~ 1i.6 2.6 1.7U
1957 ~~~ 10,987 5,805 13 308 ~~:i 52.8
t~
2.6i 1.7195 8 11,2e9 5,998 597 <;3.1 26.1t 2.5 1.8
1059 267 11,b95 6,077
5~ ~~ ~~:i ,2.9 ~~:~ 2., ~:~ 6.1
1960 2'lb 11, 712 6,23b 53.2 2.5 1,.9
1961 281 11,9b2 113 6, 353
i~
705 "0.2 53.2 31.0 11.1 2.5~:~
5.01962
i~
12, 158 111 6,h5b 560 38." 53.1 27. 9 8.7 2.5H
1963196b 12,38812,6 % 133121 6,5126,729 %9b56 l,b.519.1, ,2.6,3.2 21i.826.', ~:18 ~:f. 1.~
Percentagecha nge 1956/1 9b9 109.6 196b/19b9 196b/1956
Figuresfor19119areforthemonthofOctober,those for 19.5J,19Sh , 1956 and1957 arefor the month of April. For theremaini ng years thefip,urespertaintothe monthof Nar-ch,Unemployrnentalmostreaches thepea k in these mon t hs.
Source:1. Domi nio nBu r ea u a f Statist ics,Nont hl y Repo r t s £.!:.Labo r For c e•
25 .
tha t of the Canadian average . In tJ:arch 195 0 Newf'ound La nd ' s rat e of unem plo ymen t was 22.2 percent as comparedwithCa na d i a n ave r a g e of 6. 1 percent ; in lv.a r c h 1963 the prov i n c i a l figure was 24.8 pe r ce nt in contrast with the Canadian une mp l oy me nt average of 8.4 percent. Again, in l\;arch19 64 the rate of unempl oy ment in Newfou ndland wa s 26.4perce n t , that is, more than one out of ev e r y four workers were idle in that month (se e Table 2- 5) . The actual sit u a ti o n was wors e than these fig u r es re v ea l be c a us e di sguised unemp lo yment had not been taken into acco unt"
The loss of productionfrom unemployment was int ens if ied by a ra pi d de c li ne in the rate of participation of the lab or for ce si n c e 194 9 . In 194 9the participation rate in Newfo undland was 49.6percent of it s labo r for c e as compared with the Canadian fig ure of 54.1 pe rcent. In 1964the rate in Newfoundland dro pp e d to 39.4 pe r c e nt of its lab or for c e while the Can adia n rate was somewhat unc ha nged"(53.2 percent).
The es ta bl i sh ment of labo r - in tens i v e industries will he lp to.a b s o r b relat i vely large numbe r s of unempl oyed. On the ot he r hand, th e remova l of unnece s sa ry workers from the fish ingand Logzi.n g industries will incr ease the provincial in c ome provided they are absorbed in mor e pro d uct i ve industries"
Thu s, for the pr e sent, Newfoundland could poss i b l y benefit by enco u rag ing some of its idle people to mi.g r-a te to the mainland
26. CHART 2-3
RATE OF UNEivFLOYi-j~ ~T It~ fi!.\i FOUOLANDJ\lIJUCAr1Au A 194:1TO1964
(for the mon th of Ma r-ch )
Pe r Ce n t 35
O... .-._ _~...----~
191+ 9 '50'51'5 2 '53 '54 '55' 56'57' 5$ '59 '60' 61 '62' 63 '64 Ye a r
Source: Table 2-5
27.
where employment opportunities are greater. The pr oblem , however, remains that large numbers of the unemployed workers in Newfoundland are ill-equipped for many of the ma inla nd industries. For Long ra nge planning, it is necessar y to improve skills, mobility and adaptability of the Newfou nd l a nd labor force.
Ahealthy sustained growth in the Newfoundl and economywi ll possibly be achieved when its huma n reso ur c e s are effecti vely ut ili zed, and properly allocated . For th is, education and training are obviously essentia l and fruitful.
Th e s e aspects have been emphasized by Profess or fv~eie r in that:
"An advance in knowledge and diffusion of new ide as and objec t i.ve s are necessary to remove economic backwardness and instill the human abili t ie s and
~~~~~~~~~~~.~~gt are more favorable to ec o no mi c
. 16.
G .:rv~ .
Meier (ed. ), Leadi gg Issues inDeve lo~ment
~conomics, Oxford University Press , New York , 19'5'4, p, 26 ·
Cl1ART2-)~
PERCAPI TA PSHSONAL DISPOSABLE INCO}':E NEhTF'IIWDLA NDJ\'mCANADA
Income
Sour c e : Appendi.xA, Tahle5.
28.
2.0 Thousan ds of dollar .
NF.T VALlJEaOF emU10DITY PROorn TTONb TNNI'~WFOU"lllLAND,BY I NDLSTRY 191,9 TO 1961
(NetvalueinthousandSrfdol lars )
Tota l :
Al l Commodi t y Productio n 11,5, 8501>3, 331 150,1 97165, 1,35190, 914212, 599193,1 32190,231 ?l0,40 321,?,670261,6 37 107, 952 98',330100, 032 105, 240124,1 26 135,3 3611 8, 683106,316 118, 061135 , 627 1 3"1,181 59,88747,6 10
1,,597 20,776
62, 126 5 9 ,8 19 61 ,91,4 211,8P4
60,1162
23,966 20,659
63 , 1,39 28,172
60,316
31,,31,8 32,66.~ 3~,,,,,It30,60P 1, 061, 1,090 ],052 1,306 35,163
1,607 36,3 59
1,911 34,175
1,3 ~4 23,21226,613
1,078. 1,221
20,531 17,109 ?l,399
13,500 12,015 11.,704
7,031 5, 00!, 6,695
Trapping ]111 62 131 l,q 158 49 13~ 52 PO 46
Mi ning 17',1, 3720, 124 25,295 20,5 15 20,917 26,879 42,625 51 , 332 16, 562 36,855 46,lP5 49,119 53,753 2.Secondary
Manufac turing fl,6299 ,878 15, 632 20,617
51\, 085 p.,Pry;
81,,79 3102,6"1 10,338 10, 725 7h, !65 91 ,0 16
PE~ENTAr,EDISTRIBUTION OFTHE NETVALUE OFCOMMOD! rrPROnu~TIONINN" YOIIITl LAND,BYINDUSTRY
a ••les s th an O.C6%.
Source: 1.Cal c ulatedfromADpendixA,Table l.
31.
APPENDIX A
DIS'l:'RIBUTION OF P"'RSOlJAL INC m,IEIN NBFOUNDLANDa
194° TO1963 (i n mi ll ionsof dollars)
Wages, Salaries and Supple- mentarv Lahor Income
Farm OperatorIS
Income from Farm Production
Non-farm TTnincorpo- rated Business
Interest , Dividends and Net Rental Income of Persons
Total Income from
":conomic Pursuits
Gove r n- ment Transfer Paymerrt?
10L.9 106 26 lL2 19
1°50 116 27 11 lC; 6 22
1951 13 8 30 11 181 27
1952 151 27 12 192 30
lG53 170 26 13 211 35
195L. 177 28 16 223 38
1055 188 2° 16 235 hl
1956 210 31 18 261 46
1057 227 34 17 2FO 55
1058 230 33 18 283 77
1959 2b7 35 19 303 77
1°6 0 260 hl 23 326 73
1961 2R6 bl 25 3c:a~ 78
1962 309 L5 26 1Q2 82
lq63 336 47 29 !IlL 85
Mot es : Onl.ythe main components of personalincome aregivenin thi s tabl e, they do not ar1d to the total ofper sonal 'i.ncome, Government Transfer Payments excludingBond Inte rest.
Sourc e : 1. Dominion Bureau ofStatistics,Na t ional Accounts ,
.~~_m.::.aE~ ~~~~~~C: ~2.2~, ~??~-~~~-903.----
Forest (chi e n yl oggi ng) 1,,565 5,327 5,136 5,218 1,, 631,5,"55 5,159 1,,971 5,5SR 5,ct,9 3,BLI,
3,"62 3,696 3,981 3,R65 3,605 3,086 3,381
9,109 2,931 2,822 .1,356
10 ,558 3,318 3,309 3,350
~:~~~ 3,°% 1,, 007
11,15010 ,722 3,1,67 3,561, 3,526 3,3"1, 2,651, 2,51,9 1,,078 I.,OlD 3,970 3,"29
9,69810 ,103 10 ,07610 ,67211 ,03311,1,26 3,165 3,2853 ,2763 ,',1, 1 3,51'93 ,678 3,211, 3,5363 ,528 3,91,51, ,3761, ,795
3,3193,2823,272 3,286 3,108 2,953
1,8396,1,05 5,361 5,631
7,506 6,591
6,171 6, 109 6,239 6,1,36 6, 1,18 6,751 6,9 1,R6, 018 6,671 6,918
2,1,38 2,/'252,2512 ,237
3,733 IJ,lt83 L,I,?O 11,681 ~:;~~ ;:~~~
11,730 ",7Q3 33,781 39,3761,2,61 238,772 39,61B1,1,1,0330,31,637 ,07838,01,639 , 2253° ,8301,0 ,281,1,1,100