Economic Research & Analysis—Publications | |
Back to: Economic Research | Finance | Main Government |
Estimating the Value of the Marine, Coastal and Ocean Resources of Newfoundland and Labrador |
6.0 ECONOMIC IMPACT OF THE OCEANS SECTOR |
||||||||||||||||||
Contents |
Acknowledgements |
Glossary |
Executive Summary |
Introduction |
Overview of the Provincial Economy |
Private Sector | Federal Public Sector | Provincial Public Sector | Economic Impact | Conclusions | Appendices |
||||||||||||||||||
Sections Two to Five provided an overview of the major oceans-related private sector industries and public sector departments and agencies. While these Sections qualitatively outline the importance of these sectors to economic activity,47 the data compiled for these sectors can be used to calculate economic impacts. To calculate economic impacts (specifically GDP, labour income and employment impacts), the Department of Finance used multipliers from both the Newfoundland and Labrador Econometric and Input-Output Models. The industries used in the analysis are identified in Section 1.2. In reporting the findings of the analysis, the following industry groupings were used:48
The most significant private sector industries, in terms of total GDP impact, were offshore oil (production, development and exploration) at 11.9 per cent of GDP and the fishery (harvesting and processing) at 8.2 per cent.50 Total public sector oceans-related activity contributed 2.2 per cent of GDP. Fisheries and Oceans Canada accounted for about 54 per cent of the public sector contribution, followed by Memorial University (including the Marine Institute) and the Department of National Defence. 6.2 LABOUR INCOME IMPACT
The direct labour income impact of oceans-related activity averaged about $650 million annually from 1997 to 1999 or 11.6 per cent of total labour income which was $5.6 billion. The total labour income impact, including direct, indirect and induced effects, averaged about $1.22 billion over this period, or 21.8 per cent of total labour income. The most significant private sector industries, in terms of total labour income impact, were the fishery at 8.5 per cent and offshore oil activity at 5.2 per cent.50 The relatively low contribution from the oil and gas industry, as compared to GDP, reflects the capital intensive nature of this industry. This difference can also be seen in employment impacts (Section 6.3). Total public sector oceans-related activity contributed 3.6 per cent of labour income. 6.3 EMPLOYMENT IMPACTThe direct employment (as measured in person years) impact of oceans-related activity averaged about 24,800 from 1997 to 1999 or 12.7 per cent of total employment which was 196,100. The total employment impact, including direct, indirect and induced effects, averaged about 44,400 over this period, or 22.6 per cent of total employment. The most significant private sector industries included in this study, in terms of total employment impact, were the fishery at 12.4 per cent and offshore oil activity at 3.1 per cent.50 The employment contribution from the fishery (12.4 per cent) was greater than its GDP or labour income contributions (8.2 per cent and 8.5 per cent, respectively). This reflects, in part, the labour intensive nature of this industry in the province. Total public sector oceans-related activity contributed 2.4 per cent of employment. Fisheries and Oceans Canada accounted for about 1.2 per cent, or almost one-half of the total public sector contribution. |
|
|
This information was current as of September 30, 2001. |
|
[Government Home | Finance Home | Economic Research & Analysis Home | Disclaimer] | |