Table 2.3 shows high unemployment and low participation rates in CBRM as of August-October 2000. Even with CBRM’s lower participation rates, the unemployment rates in the CBRM and the rest of Cape Breton Island are substantially higher than those encountered on the mainland of Nova Scotia. If one applies the mainland participation rate to the CBRM, its unemployment rate rises to about 32%.

Table 2.3 Labour Force Activity AUG-OCT, 2000 (seasonally adjusted)

	Nova Scotia	CBRM*	Rest of CBI*	HRM	Rest of NS
Labour Force Age Group	749,648	93,334	32,580	278,028	345,706
Labour Force	461,033	47,076	16,400	197,400	200,157
Employed	417,433	40,499	14,064	185,900	176,970
Unemployed	43,600	8,990	3,104	11,500	20,006
Participation Rate	61.5%	50.4%	50.3%	71.0%	57.9%
Unemployment Rate	9.5%	19.1%	18.9%	5.8%	10.0%

Notes. Totals may not add up due to rounding. * = estimated by EDM
Source: Statistics Canada, CANSIM II, tables 279-0005, 279-0006 and 279-0007 and Catalogue no. 71-001-PIB.; Nova Scotia Department of Finance, Publications, "Employment Situation" & EDM

However, the data in Table 2.4, 18 months later in April 2002, show a different picture.

Over the previous 18 months, total employment in CBRM decreased by about 240 jobs, which suggests a minor annual rate of decline of 0.4%. This is compared to an annualized decline of 1.7% for HRM. If the mainland labour participation rate is applied to the CBRM its unemployment rate would be about 29%.

These data indicate that despite the final closure of SYSCO and DEVCO, and the modest economic slowdown (September-December 2001), during the last 18 months the underlying employment growth trend of other sectors in the CBRM appears to have maintained itself. The persistence of the trend is likely related to the fact that markets and economies tend to adjust in anticipation of economic conditions and therefore the negative impacts of the closure of SYSCO and DEVCO have already been absorbed by the CBRM economy.

Cape Breton Island 1987-2002

Taking a longer term view on the overall economy we find that from September 1987 to February 1993 the Island economy showed a general trend to declining employment, falling from about 56.1 thousand (September 1987-August 1988) to about 47.1 thousand (January-December 1996). Employment then began a steady growth trend that continued into the first quarter of 2002. For the 12 months ending April 2002 employment has recovered to about 54.6 thousand.

From February 1993 to the first quarter of 2002 employment grew about 1.13% per year, despite the loss of about 3,400 jobs in steel and coal mining. The closure of the steel and coal mining sectors masked the strong performance of the rest of the Island’s economy, which produced an annual average growth of 1.86% in employment.

This is not to say all is well in the CBRM economy. Threading water is not the same as steady positive growth, and significant re-investment and re-structuring will still be required to make certain these growth trends continue.