Halifax economic data from the first quarter of 2009

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GREATER HALIFAX ECONOMIC SNAPSHOT:
FIRST QUARTER 2009
1st Quarter Overview
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Halifax’s economy held its own during the 1 quarter of 2009, in the face of one of the
worst recessions the world has seen. Halifax’s diverse economy has allowed for other areas
to pick up where others are struggling.
• With the world markets still struggling to stabilize it is expected that Halifax will not be
immune to the effects of the recession. In the coming months of 2009, Halifax’s labourforce
may see employment growth begin to slow, there may be more lay offs, and Halifax will
likely experience some flat growth or declines in GDP before things begin to improve.
Labour Force
• Despite the global recession Halifax’s labourforce has continued to maintain momentum;
employment and labour participation are well outpacing the national and provincial trends
which have seen record declines.
• Employment grew by 1,700 jobs from January to the end of March 2009, as compared to
the first quarter of 2008 which had a decrease of 700 jobs.
Halifax was second, behind St. John NB, among a select group of six CMA’s who have
posted employment growth since December.
• Notwithstanding these gains in employment the unemployment rate climbed to 6.0 during
the 1st quarter of 2009 from 5.6 in the 4th quarter of 2008.
• There have also been significant increases in the size of Halifax’s labourforce which grew by
1.9% since December 2008 and 4.7% Since March 2008.
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2.
Labour Force cont’d
• In spite of the Global economic crisis, and indeed some lay offs, Companies continued to
forge ahead with expansion plans and investment in the labourforce:
Halifax labourforce 1st quarter 2009 News:
• Teletech Holdings Inc. will hire 100 by the end of February
• Nautel Ltd. Hired 30 new workers
• Halifax Shipyard will hire 200 new positions in relation to the Deep Panuke
Project
• Flagstone Reinsuance Holdings Inc will create 80 new positions
• Mil‐Aero Electronics intended to hire five or six new employees by the end of
February
• Halifax chronicle Herald laid off 33 workers
• RKO Steel Ltd. Laid off 40 workers
• AMEX Call centre closed, 87 employees have lost their jobs.
Housing
• The Halifax housing market was not unaffected by the global economic turmoil and credit
crunch. Most investors and buyers continued to hold a cautious, wait and see approach.
• Housing starts experienced a 35% decrease in the first quarter of 2009, over the first
quarter of 2008, with the largest decline in Single starts, and no condo starts at all,
compared to 38 condo starts in the first quarter of 2008.
1st Quarter 2008 1st Quarter 2009 % Change
Single Starts 204 104 ‐49%
Multiple Starts 219 170 ‐22%
Total Starts 423 274 ‐35%
• Housing sales also decreased 13%, between the 1st quarter of 2008 and 2009. In contrast,
there is also a 14% increase in active listings in March 2009, over March 2008.
• Despite the decline in sales, the average prices have continued to rise; the average price of
a home in the 1st quarter of 2009 sold for $228,827, as compared to $221,473 in the 1st
quarter of 2008
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3.
Office/Commercial/Industrial Space Vacancy
Office Space Vacancy
Class A Class B Class C
% % %
Downtown 1.6 5.1 7.0
Halifax
Peripheral 27.9 6.5 16.5
Halifax
Dartmouth 15.2 13.9 7.3
Bedford/Sackville 12.1 8.7 2.8
• The provincial legislature passed legislation in the fall of 2008 allowing the HRM by Design
plan to become law. The plan is a balance between heritage preservation and growth, with
a goal to increase the population of those living downtown.
Industrial Space
Vacancy Rate %
Halifax/ 4.3
Bayers Lake 2.8
Ragged Lake 0.0
Atlantic Acres 9.4
Sackville 8.7
Bedford 11.4
Burnside Industrial Park 9.3
• Two of the main roads in the Atlantic Gateway Halifax Logistics Park, Wilkinson and
Burbridge Avenues became accessible during the 1st quarter of 2009 from the Wright
Avenue extension. Halifax Logistics Park is a newly created phase of Burnside Business Park
that advances the Logistics Park Concept.
Land prices in this area range from $4.05 ‐ $4.50 per square foot. Lots available for
sale off John Savage Avenue that are designed for Office construction are listed at
$5.50/sf.
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4.
Investment
• Investment in non residential construction increased 36% in Halifax during the 1st quarter of
2009 over 1st quarter 2008, and 2 % over the 4th quarter 2008. Surpassing the national
average increase of 3.2% over the 1st quarter and ‐1.7% over the 4th quarter of 2008.
• The number of building permits increased 4% in the first quarter 2009 over 1st quarter 2008,
based largely on the increase in multiple units.
• The value of those building permits have declined 22.5% in the 1st quarter of 2009 over 1st
quarter 2008.
Investment in Halifax 1st Quarter 2009:
• Armour Transportation opened a $15 Million logistics facility in Burnside
• Canadian Tire is set to begin its new store in Bedford Commons
• 220 Condominiums are also slated to be developed in Bedford Commons
• Banc Properties is also building 82 Semi Detached homes in Halifax
• Nautel recently added $1million in new manufacturing equipment
Airport and Port Activity
• The global recession and credit crunch have had an impact on the 1st quarter activity of
Halifax’s airports and shipping port, which have both recorded declines in their business
lines over 2008.
Airport
• Passengers enplaned and deplaned at Halifax Stanfield International Airport decreased
11.4% during the 1st quarter of 2009 over the 1st quarter of 2008.
• In March 2009, Halifax Stanfield International Airport was awarded the world's best airport
for overall passenger satisfaction in its class (under five million passengers) for the sixth
straight year. HSIA earned three first‐place finishes and one second‐place finish in the 2008
rankings:
First in overall passenger satisfaction for airports worldwide with under five million
passengers
First in the Best Airport ‐ North America category
First ‐ for the third straight year ‐ in the Americas in the category of Airport People
Awards
Second in the Best Domestic Airport category
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5.
Port
• Total cargo in metric tones increased slightly (0.4%) over the 1st quarter 2008. However,
Containerized port in TEU’s (Twenty Foot Equivalent units) was down 29% the first quarter
of 2009 over first quarter 2008, with an even decline in exports and imports.
Halifax International Airport Authority 1st quarter 2009 News:
• Halifax International Airport Authority (HIAA) opened its new Parkade at 8 p.m. on
Thursday, March 12, 2009
• March 2009, Halifax Stanfield International Airport (HSIA) announced that it had been
ranked the world's best airport for overall passenger satisfaction in its class (under
five million passengers) for the sixth straight year
• Halifax International Airport Authority (HIAA) announced today that a new
international air cargo service will begin operation at Halifax Stanfield International
Airport on March 31, 2009.
Halifax Port 1st quarter 2009 News:
• CMA CGM, the world's 3rd largest container shipping company, has announced plans
to initiate a new service which includes a regular call at the Port of Halifax.
• The Halifax Port Authority’s board of directors today announced the re‐appointment
of President and Chief Executive Officer Karen Oldfield.
• Halifax Stanfield International Airport (HSIA) has been ranked the world's best airport
for overall passenger satisfaction in its class (under five million passengers) for the
sixth straight year.
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6.
Economic Snapshot Mar 08‐09 Mar 08‐09
Dec‐08 Mar‐08 Mar‐09
1st Quarter 2009 % Change Trend
LABOUR FORCE
Employment (‘000) 213.1 208.9 215.9 3.4%
Labour force size (‘000) 225.3 219.5 229.6 4.6%
Participation rate 70.7% 69.6% 71.8 2.2
Unemployment rate 5.3% 4.8% 6.0 1.2
CONSUMPTION
Inflation rate ‐0.1% 2.2% 0.2% ‐2
Retail sales ($ millions)* 6,084.0 1,525 1,458 ‐4.4%
HOUSING
Average housing prices $237,482 $221,473 $228,827 3.3%
New housing price index 150.3 148.2 150.5 2.3
Housing starts* 2,096 423 274 ‐35%
Housing sales* 6,205 501 436 ‐13%
CONSTRUCTION
Building permits
28.9 52.5 27.7 ‐47%
($ millions)
Non‐residential construction
96 72 98 36%
($ millions)
TRANSPORTATION
Aircraft passengers*
3,578,931 814,786 721,226 ‐11.5%
(enplaned/deplaned)
Total Cargo Volume*
3,197,776 2,349,842 2,358,423 0.4%
(metric tonnes)
EDUCATION 2006‐2007 2007‐2008 2008‐2009
Full‐time University enrolment – Greater
23,478 23,812 23,512 ‐1.3%
Halifax
International student enrolment – Greater
2,258 2,329 2,423 4%
Halifax
Full‐time Nova Scotia Community College
3407 3834 4020 4.9%
enrolment ‐ Greater Halifax Campuses
* Cumulative – from January.
*Sources: Statistics Canada, Canada Mortgage and Housing Corporation, Port of Halifax, Atlantic Association of Universities,
Halifax International Airport Authority, Nova Scotia Community College, Nova Scotia Department of Tourism
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