Alberta Labour Market Bulletin

January 2011

Alberta Labour Market Bulletin - January 2011 (PDF version, 90 kb)

The Labour Market Bulletin is produced monthly by economists and labour market analysts employed by Service Canada in the Western Canada and Territories Region.

Content is intended for non-commercial use.

Highlights in this Issue

• Alberta to show strong economic recovery in 2011.
• Continued growth expected for conventional oil.
• Wind farm development continues in Central Alberta.

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Mailing Address:

Editor, Labour Market Bulletin
Labour Market Information Directorate
Western Canada and Territories Region
Labour Market and Social Development Programs
Service Canada
#1100 - 300 West Georgia Street
Vancouver, British Columbia, V6B 6G3

Key Events in Alberta

Province-wide

Province to lead the nation for growth in 2011: The Canadian Chamber of Commerce is predicting that Alberta's real GDP growth will be above the 2.4% rate it expects for the country as a whole in 2011, along with other resource-based provincial economies. Economists with ATB Financial also indicate that aside from the weaker spots in natural gas and housing markets, the province will see respectable growth this year as stronger oil prices drive both conventional oil and oil sands markets.

Key Source: The Calgary Herald, December 28, 2010
ATB Financial, Weekly Economic Bulletin December 23, 2010

Continued growth expected for conventional oil in 2011: Higher oil prices, hovering around $90 a barrel of late, along with new extraction methods, will likely spur the growth of conventional oil this year. Horizontal drilling, the very technology that helped to depress the natural gas market by unlocking vast new supplies, is now extending the productivity of some of the province's aging oilfields. The ensuing increase in pumping services, while benefiting oilfield job seekers, is also expected to boost many rural economies from the resultant increase in demand for restaurants and hotels.

Key Source: The Calgary Herald, January 03, 2011

Residential construction increases in Alberta: The Canada Mortgage and Housing Corporation reports that construction starts of single-family homes in Alberta have increased substantially from the same period in 2009. Construction began on 12,255 homes over the first ten months of this year, an increase of more than 50% from the same period in 2009. This represents yet another sign of economic recovery in Alberta, with builders gaining confidence that housing demand will increase in the coming months.

Key Source: The Canada Mortgage and Housing Corporation, December 10, 2010

Alberta’s provincial parks to receive significant infrastructure boost: The Province of Alberta has announced a $10-million federal-provincial initiative that will see 70 provincial parks gain new amenities and improved access over the coming year. Provincial officials state that the projects will generate numerous jobs, while boosting tourism to rural parks that were previously difficult to reach.

Key Source: The Government of Alberta, December 10, 2010

Lethbridge – Medicine Hat

Grant assists Alberta milk producers: Cheese producer Agropur has received a $2.4-million grant from the joint federal-provincial Growing Forward Program. The grant will go towards the $23-million expansion and automation update of the Sunnyrose cheese plant, located in Diamond City. It is unclear how many jobs will be created; however, the expansion will allow the plant to double its milk allocation, a benefit to Alberta milk producers.

Key Source: Alberta Government, December 15, 2010

High River’s Western Financial acquired: Western Financial Group, a High River-based insurance and financial services retailer, has been acquired by Quebec-based Desjardins Financial Group. The $443-million deal will see Western Financial’s 121 offices and 1,400 employees in Western Canada continue to offer services to over a half-million customers. The deal is expected to close in the second quarter of 2011.

Key Source: Western Financial Group, December 23, 2010

Calgary and Mountain Parks

Hiring expected for the new year: Calgary employers plan to increase their staffing levels in the upcoming quarter (January-March). According to Manpower Employment Quarterly Outlook Survey, 28% of Calgary employers plan to hire, while 10% anticipate cutbacks.

Key Source: Manpower, December 7, 2010

Housing market recovery slow: According to the Calgary Real Estate Board (CREB), home sales in Calgary dropped in December, down from both the month previous and from December 2009 as well. Fewer buyers and higher inventory levels are keeping Calgary homes on the market longer. Year over year, sales are down by 9.94%, a sign that the economy has been slow to recover. Looking towards 2011, CREB is indicating the housing market will improve, as investment and employment in the energy sector begin to recover. Moreover, low interest rates and better affordability will also buoy this important market.

Key Source: Calgary Real Estate Board, January 4, 2011

Red Deer / Camrose – Drumheller

Oil producer increasing stake near Lloydminster: Western Plains Petroleum, a Lloydminster-based junior heavy oil producer, has acquired all the petroleum and natural gas rights to 120 acres of land near Lloydminster, including 160 acres in Saskatchewan. This purchase will add several potential drilling opportunities for the company, and will create jobs for the local area.

Key Source: Filing Services Canada, December 14, 2010
Western Plains Petroleum, November 14, 2010

Construction on new wind farm to begin in 2011: Greengate Power Corp is completing final development details on a wind farm project near Halkirk. The first phase of the Halkirk project is scheduled to begin construction in 2011, and will involve the installation of approximately 83 turbines, generating 150 megawatts of energy. Once the second phase is complete, the massive project will be the largest wind farm in the province, producing 300 megawatts of electricity, enough to power 50,000 homes.

Key Source: Red Deer Advocate, December 13, 2010

Ghost Pine wind farm completed: NextEra Energy has completed construction of the Ghost Pine Wind Project located in Kneehill County. The 51-turbine wind farm is scheduled to be hooked into the provincial power grid by the end of 2010, generating enough electricity to power almost 25,000 homes.

Key Source: Red Deer Advocate, December 13, 2010

Edmonton Area

Bitumen upgrader plans cancelled: Total E&P, a leading multinational energy company, has shelved plans for a bitumen upgrader to be constructed near Edmonton. Total recently received regulatory approval for the upgrader, but abandoned the plan after forming an alliance with Suncor Energy. The alliance now has the two companies swapping interests in the Fort Hills and Joslyn North mine projects. The cancellation of Total's upgrader, which would have created up to 4,000 jobs for the Edmonton area, is a short-term blow for the local region's economy; however, some of the jobs and future opportunities will be retained through the operation of a Suncor upgrader north of Fort McMurray. The operation of the northern upgrader will also ensure that additional bitumen continues to be processed within the province.

Key Source: Total E & P Canada Ltd News Release, December 17, 2010,
Edmonton Journal, December 18, 2010

Employment survey indicates Edmonton employers plan to hire: A recent survey by Manpower Inc. indicates Edmonton area employers expect a favourable hiring climate for the first quarter of 2011. Survey findings show 26% of employers plan to hire in the quarter, while 10% anticipate job cuts. The survey also showed that 63% of employers intend to maintain current staffing levels and that employers plan to continue to hire at the same pace as the past three-month period.

Key Source: Manpower Inc. Press Release, December 7, 2010

Northern Alberta

Grande Prairie Airport expansion: The Grande Prairie Airport plans to extend its runway in order to provide more flight options for the future. With a longer runway in place, non-stop flights to Vancouver and Toronto could be added, as well as seasonal service to Las Vegas. The expansion could provide additional jobs and tax revenues for the local economy. In 2009, the Grande Prairie Airport was the third busiest airport in Alberta, handling more than 335,000 passengers and 20,000 flights.

Key Source: Daily Herald-Tribune, December 17, 2010

Multiplex looks to hire new lifeguards: The City of Grande Prairie will hire 20 to 30 lifeguards this August, with completion nearing on the Grande Prairie Multiplex. Advertising for these positions is starting early, as completion of required courses can take up to six months. Lifeguards for the city earn $20.54 per hour and have the benefit of a flexible schedule.

Key Source: Daily Herald - Tribune, December 31, 2010

Opening of Grande Prairie Multiplex one year away: The opening of the Grande Prairie Multiplex is on schedule for December 2011. The $109-million facility will provide users with a dinosaur-themed aquatics facility and an athletics and sports area. Once operational, the facility will create 40 full-time jobs and more than 25 part-time positions.

Key Source: www.themultiplex.ca, December 13, 2010

Further pipeline expansion planned for oil sands: Calgary-based Enbridge Inc. will be expanding its Athabasca oil sands pipeline to accommodate fast-growing production from northeastern Alberta. The $200-million investment comes less than two months after the company announced an initial expansion to the Cold Lake-Hardisty segment of the line. Between both expansions, the pipeline giant will have increased the capacity of its Athabasca line to 570,000 barrels per day by early 2014.

Key Source: Financial Post, December 16, 2010

New tailings-management directive being implemented: The Energy Resources Conservation Board (ERCB) has conditionally approved tailings pond applications for Canadian Natural Resources' Horizon and Shell's Jackpine oil sand projects. The approval wraps up the initial phase of the new directive for strengthening tailings management in the province. To date, the ERCB has conditionally approved tailings-management plans for five major oil sands operators representing a cumulative $4-billion investment in the necessary technology, infrastructure, and upgrades to meet the directives requirements.

Key Source: Fort McMurray Today, December 28, 2010

Northern Alberta airport set to expand: Fort McMurray’s airport authority is adding a 14,000-square-metre terminal to the area's currently undersized airport. Upon opening in early 2014, the facility’s eight gates and four passenger bridges will accommodate up to 1.5 million passengers a year. Airport land, previously municipal, has been signed over to the airport authority, allowing financial planning for the $198 million project to begin shortly.

Key Source: fortmcmurraytoday.com, December 14, 2010
Edmonton Journal, December 13, 2010