Premier Danny Williams unveiled in 2007 a 'baby bonus' program to encourage more people in Newfoundland and Labrador to have babies. (CBC)

The number of babies born in Newfoundland and Labrador jumped significantly in 2008, newly released data show.

Mothers delivered 4,905 babies in the province last year, an increase of more than 300 — or about seven per cent — from 2007.

It was the highest number of births recorded in the province since 1990. The number of births had been declining since the early 1990s, and a declining population has posed serious challenges for Newfoundland and Labrador's education, health and social services systems.

"It is interesting to see an increase of this magnitude in one year," Don MacDonald, senior research director with the Newfoundland and Labrador Centre for Health Information, said in a release.

MacDonald said it took eight years for the number of live births to drop by 10 per cent.

"This increase in the number of births is a positive step toward population growth for our province," he said.

The new figures come during a time of overall improved economic fortunes for Newfoundland and Labrador.

As well, the provincial government has introduced what is frequently called a "baby bonus," with incentives paid to new parents. Premier Danny Williams pledged to create the $1,000 payments in the 2007 provincial election, when he notably referred to people in the province as "a dying race."

NLCHI said the number of births increased in all four of the province's health regions.

The birth rate in 2008 was 9.6 births per 1,000 people, up from nine births per 1,000 in 2007.