News Release

For Immediate Release 
April 17, 2003

ECBC Releases Study on the Socio-Economic Impact of the 
Tele-Service Industry

Sydney (N.S.) - Enterprise Cape Breton Corporation (ECBC) and the Cape Breton Growth Fund (CBGF) today announced the results of a recently completed study on the socio-economic impact of the tele-service industry (call centres) on the Cape Breton Island economy. 

In 2000, a labour market survey completed by ECBC determined that there was in excess of 5,000 unemployed or under-employed people on Cape Breton Island who had educational levels and wage expectations consistent with the tele-service industry. Since that time over 3,000 tele-service jobs have been created, primarily in the Cape Breton Regional Municipality (CBRM). 

The economic impact analysis, completed by Canmac Economics Ltd. of Halifax, concludes that in 2002, this sector accounted for $66.7 million or 2.6% of total Cape Breton household incomes. A total of 4,518 person-years of employment (direct and indirect jobs) have been created, representing 8.3% of total employment on the Island. The tele-service sector’s total economic impact currently accounts for $83.0 million or 2.4% of Cape Breton’s gross domestic product (GDP).

“The tele-service industry has become an important economic influence in the local economy,” said Rick Beaton, Vice-President of ECBC and CEO of the CBGF. “It has provided a measure of economic stabilization and has created a significant number of jobs. The goal now is to build on this momentum and to create additional employment in other industry sectors.”

The study also demonstrates that the sector is a significant contributor of government fiscal benefits. A total of $21.3 million was generated in 2002, ($11.9 million in federal benefits and $9.4 million in provincial benefits).

Between 1998 and 2002, call centers contributed $1.8 million to municipal coffers in the form of business occupancy and property taxes. The CBRM is the major beneficiary benefiting from the majority of the jobs, industry suppliers and municipal taxes.

Other socio-economic impacts associated with the tele-service sector identified in the study include:
· a reduction in out-migration of 636 persons over the next five years,
· a reduction in unemployment insurance payments with 17.5% of the tele-services workers coming directly from the Employment Insurance Program, and 
· a reduction in welfare payments with 6.1% of tele-service workers coming from social assistance programs.

The major industry sales generated in the Cape Breton economy in 2002 as a result of the tele-service sector include:
Telecommunications $7.1 million
Professional Services $11.8 million 
Retail $36.7 million

Copies of the study can be obtained directly from ECBC. 

Enterprise Cape Breton Corporation offers programs in support of economic development initiatives and is responsible for delivering ACOA's programs on Cape Breton Island and in the Mulgrave area.

The CBGF is a partnership between the Government of Canada and the Province of Nova Scotia and has a mandate to assist in the transition of the Cape Breton economy.

FOR ADDITIONAL INFORMATION CONTACT:

D.A. Landry 
ECBC Communications 
Tel: (902) 564-3617