Alberta’s economy is diversifying, but is it enough?

by Anna Junker

The provincial government is expecting Canada to once again lead the country in economic growth in 2018, but businesses and agencies in Calgary are a bit more cautious in their outlook.

In a post-Christmas news release, the government said the year is ending with increases in nearly every sector of the economy, including adding tens of thousands of full-time jobs and the unemployment rate falling to its lowest level in two years.

“We have more work to do, but it is clear: Canada is moving forward. All credit goes to the resilient, hard-working and entrepreneurial people of Canada. By working together, we can continue to create new jobs and a more resilient and diversified economy for Canada families,” said Deron Bilous, minister of economic development and trade.

One positive in 2017 was Canada’s overall unemployment rate, which stood at 7.3 per cent in November, down from 7.8 per cent the previous month and nine per cent in November 2016.

However, most of the gains were in lower-paying jobs, suggesting that while there was overall gain in employment, the new jobs were not of great quality.

Scott Crockatt with the Calgary Chamber of Commerce said there are three challenges businesses will face in the new year, the first being unemployment.

“Calgary’s unemployment rate is now back under eight per cent so we no longer have the dubious distinction of having the highest unemployment rate in the country, however, there is still a long way to go,” Crockatt said.

Adding to that is concern over entry-level work available for young people.

“It’s becoming very hard to come by, and especially minimum-wage employers report to us that more than half of them said they had to lay off some of that staff.”

The second challenge, Crockatt said, is the layered costs of government taxation and regulations.

“Over the past year and a little bit before that, businesses have seen a whole host of increased costs. Workplace legislation changes on the employment labour codes, the carbon levy . . . as well as minimum-wage increases and, a little bit before that, both federal and provincial corporate tax increases,” Crockatt said.

“The impact of one cost after another being layered on top is really having a harmful impact on businesses.”

The third challenge, Crockatt noted, is seeing the positive economic indicators translate into actual business success.

full story at http://calgaryherald.com/news/local-news/albertas-economy-is-diversifying-but-is-it-enough