The Absence of Opportunity: Understanding the Dynamics of Out-Migration in Newfoundland and Labrador

Abstract

According to the 2006 Census, the population in Canada population increased by 5.4 percent between the years 2001 to 2006. During the same period, the population of Newfoundland and Labrador decreased by 1.5 percent or 7,461 people. The natural component of population growth in Newfoundland and Labrador turned negative in 2005, implying that the death rates per one thousand exceeded the birth rate per one thousand. If present patterns of interprovincial migration continue, the population of Newfoundland and Labrador will continue to decrease. This does not bode well for Newfoundland and Labrador since many government programs are funded on a per capita basis. Negative population growth in Newfoundland and Labrador has a negative impact on the rate of growth of human capital formation, as well as physical capital formation, both of which would impact adversely on the standard of living in Newfoundland and Labrador. The consequences of negative population growth are shortages in the availability of skilled workers, a decline in innovators, dwindling markets for goods and services and problems associated with caring for an aging population. The purpose of this paper is to provide an understanding of the economic dimensions of the migration patterns in Newfoundland and Labrador which includes an analysis of both interprovincial and intra-provincial migration. This paper is an effort towards describing the economic and geographical landscape that face policy makers who are tasked with the responsibilities of promoting economic growth in general and maintaining a commitment to rural economic development.