Alberta Labour Market Bulletin

July 2011

Alberta Labour Market Bulletin – July 2011 (PDF version, 100 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 personal and public non-commercial use.

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Editor, Labour Market Bulletin
Labour Market Information Directorate
Western Canada and Territories Region
Labour Market and Social Development Programs
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Province-wide

Strong Labour Market Growth through 2030: Alberta’s economy, driven by high energy prices and available supply in the oil sands, will outperform all other provinces. GDP growth of 3.4% per year is expected to 2015, then somewhat slower to 2030. Growth will be driven primarily by the non-conventional oil production from the oil sands, which will absorb significant capital investments and will create an increased demand for labour. Coupled with slower growth in labour supply as the population ages, this will result in upward wage pressures as well as an increased demand for foreign labour through immigration and the Temporary Foreign Worker program.

Key Source: Conference Board of Canada May 16, 2011.

Oil sands outlook to 2044: Significant employment growth in construction is expected as an increase in capital expenditures is predicted to increase through 2023 and then slow until 2035. Operating employment will grow through the mid-2030's then remain at level. Enabled by increasing world oil prices and technology advances, which will reduce costs and environmental impacts, oil sands producers will remain profitable, making significant royalty contributions to the Provincial Government.

Key Source: Canadian Energy Research Institute, May 30, 2011.

Food Services Employment Jumps: The last twelve months have proven extremely positive for Alberta's food services industry, with employment increasing 8.1% year-over-year, the second largest increase nationwide. This gain is likely driven by increasing employment and disposable income from Alberta’s booming economy. This sector features often lower paid employment, has high turnover and many younger workers.

Key Source: Statistics Canada, May 30, 2011.

Major industrial employer launches hiring strategy: In an effort to fill 9,000 vacancies in Alberta this year, Ledcor Industries has launched a recruitment campaign using social media in addition to billboards, posters and contact cards. Workers are needed most in the industrial, maintenance and civil divisions, to work on a number of oil sands industry projects near Fort McMurray.

Key Source: Edmonton Journal, May 31, 2011.

Oil companies face recruitment challenges: Alberta’s oil industry is facing competition from international companies when it comes to staff recruitment. Recent news that Australian companies are recruiting workers in Alberta highlights the challenge of higher salaries being paid abroad. Indeed, Canada ranks number three in salary levels, falling behind Australia and Norway, with Australia’s average salaries sitting 10% higher than those in Canada.

Key Source: Hays Oil & Gas Global Salary Guide 2011, June 3, 2011. 

Strong oil sands growth to spread through economy: Alberta will continue to benefit from oil sands growth over the next year, leading all other provinces in GDP and retail sales increases, while placing second in employment gains. Strong performance in the oil sands is positive, as it bolsters the construction industry and provides opportunities for equipment and service suppliers; generating employment income that fuels the retail sector. Moreover, a strong energy sector ensures that Alberta is less likely to be affected by weakness in other sectors, unlike other provinces in Canada.

Key Source: Royal Bank Economics, June 9, 2011.

Labour market remains strong:  Year over year employment growth of 8,500 or 2%, and a half-point decline in the unemployment rate to 5.4%, provide further confirmation of Alberta’s labour market remaining strong. Demand for workers in key occupations and for temporary foreign workers will continue.

Key Source: Statistics Canada, June 10, 2011.

Asia seen as Canada’s next natural gas market: Facing low natural gas prices, and a desire to find new markets, Alberta’s natural gas industry is keen to expand exports to Asia, where growing economies and perceived risks of nuclear energy have led to natural gas prices closer to those of oil. Nevertheless, while employment opportunities have the potential to be significant, they will only come in the long term. Indeed, Alberta and its vast natural gas deposits are largely oriented to eastern Canada and the US, despite the province’s relatively close proximity to Asia.

Key Source: Globe and Mail, June 13, 2011.

Three new alternate energy projects: Three projects worth $130 million will create knowledge based jobs in alternate energy and employment in construction. Seed funding was announced for the world’s largest commercial fast pyrolysis plant producing synthetic fuel; the world’s first large scale carbon neutral bio-fuel plant efficiently producing ethanol; and an energy efficient anaerobic digestion system to generate electricity and heat for a pulp mill.

Key Source: Climate Change and Emissions Management Corporation, June 21, 2011.

Tightening labour market - EI beneficiaries down; help wanted ads up: Alberta’s labour market showed more signs of improvement in April, as the number of Albertans collecting EI benefts declined by more than 25% year-over-year; twice the national average. Meanwhile the help wanted index for both Edmonton and Calgary shows advertising for workers is higher than in the period prior to the recession. This will likely increase demand for older workers, who traditionally become a key hiring source when labour markets tighten. Indeed, an international survey indicated companies in Canada are much more likely to hire older workers than in other countries.

Key Sources: Statistics Canada, June 23, 2011; Conference Board of Canada, June 29, 2011; PwC June 9, 2011.

Calgary and Mountain Parks

Video stores closing: Blockbuster Canada announced it would close seven of its 17 stores in Calgary by June 18, affecting about 70 employees. It is presently unclear whether these employees will be absorbed into other locations to avoid layoffs. The closures are part of the video retailer's overall plans to close 146 stores in Canada, as the company, currently in receivership, seeks a potential buyer.

Key Source: The Calgary Herald, June 01, 2011.

North American energy conference will promote local energy firms: The 2011 Gas & Oil Exposition and Conference, which will be held in Calgary from June 7-9, will not only boost the local hospitality industry, but will also provide local energy companies the opportunity to promote and attract new business. The bi-annual conference will bring together nearly 20,000 energy professionals and 500 exhibiting companies. Financial deals made at the conference have the potential to bolster the province’s economy, while generating jobs in the all-important oil and gas sector.

Key Source: Gas and Oil Expo www.gasandoilexpo.com; Newswire May 24, 2011.

Calgary employers show confidence in economy: A Calgary Chamber of Commerce employer report has identified labour shortages, and the ensuing problems with hiring, retaining and developing workers, as concerns for 2011. Nevertheless, these concerns can be viewed as a positive sign of economic recovery as a recent employment survey indicated that 22% of Calgary employers intend to hire over the summer months, with only four percent anticipating cutbacks.

Key Source: Manpower Inc. Press Release June 14, 2011; Calgary Chamber of Commerce news release June 3, 2011.

Construction to start on Calgary Airport Tunnel: The City of Calgary and the Calgary Airport Authority (YYC) have signed an agreement providing the City with access to airport land in order to facilitate the construction of a tunnel under the YYC’s new north–south parallel runway. Work on the estimated $280 million project is expected to start in the next few weeks and will be completed by 2014. In addition to creating construction jobs, this project will aid local residents and businesses in moving goods and services locally, regionally or globally, by providing a direct connection to the airport.

Key Source: City of Calgary and Calgary Airport Authority news release, June 17, 2011.

Calgary plans to recruit workers and businesses: Calgary Economic Development, supported by more than 30 companies, has launched a 10-month national marketing and business development campaign aimed at attracting workers and businesses to Calgary. The "Be Part of the Energy" campaign will highlight the city as a place to live and work, as well as highlighting the many business opportunities in sectors such as energy, finance, technology and logistics.

Key Source: Calgary Economic Development news release June 21, 2011; Calgary Herald, June 22, 2011.

Edmonton

Education cuts continue: The Greater St. Albert Catholic School Division is anticipating a loss of 13 teachers in the upcoming school year due to a funding shortfall from the provincial government. The division employs about 400 teachers and hopes to handle the cuts through attrition. The Alberta Teachers’ Association is predicting 1,000 job losses province-wide, most likely impacting young teachers, who have probationary or temporary contracts.

Key Source: St. Albert Gazette, May 28, 2011.

Oil sands construction surges: The demand for contracting firms that complete welding, pipefitting, and electrical jobs at the Cenovus Energy module yard in Nisku is projected to increase, as the company accelerates its $3.5 billion capital expansion plans in the oil sands. The current yard has about 30 staff and 250 tradespeople, but Cenovus is purchasing an adjacent site that will increase the yard size by 50% and module production from 15 to 25 units per month.

Key Source: Edmonton Journal, June 07, 2011.

New jobs with world’s second-largest hardware retailer: Lowe’s Home Improvement Warehouse is opening a 103,000-square-foot, $20 million store on June 13, employing about 150 people. The south side store is the first in Edmonton for the U.S. based hardware retailer and, although no timeframes have been given, the company expects to open several more locations in the city.

Key Source: Edmonton Journal, June 08, 2011.

Construction consortium expands: About 200 workers are expected to be employed on the construction of a $24 million, 82,000-square-foot expansion to the North American headquarters of PCL Constructors. The expansion, to be completed in October 2012, will provide space for the consolidation of approximately 220 office staff from other sites.

Key Source: Edmonton Journal, June 13, 2011.

Outdoor retailer searching for employees: Cabelas is seeking to hire more than 200 employees to staff a new 70,000-square-foot store under construction in southwest Edmonton. The store, scheduled to open in August, is looking for tellers, customer service representatives and outfitters. Recruiting started with a job fair in April, but the U.S.-based retailer is still looking for additional employees.

Key Source: Edmonton Journal, June 16, 2011.

New jobs with U.S. home specialist: Home furnishings retailer Crate and Barrel are currently looking to recruit 40 staff to work at their new 24,430-square-foot Southgate Mall location. The company is planning to hire an assistant store manager, along with full and part-time sales and stockroom personnel for the store that is set to open in October.

Key Source: Edmonton Journal, June 21, 2011.

Education layoffs: Following the passage of a final budget, Edmonton Catholic Schools is planning to cut 97 teaching positions, 63 support staff, and 24 custodial positions for the upcoming 2011-12 school year. The staff reductions will take effect at the end of August. The cuts will mean larger class sizes, an increase in teaching time, a funding freeze for special-needs education programs, and will likely lead to fewer extracurricular activities.

Key Source: Edmonton Catholic Schools, News Release and 2011/12 District Operating Budget, June 28, 2011.

Red Deer - Camrose/Drumheller

Teachers and staff to see lay-offs: The Battle River School Division has announced that 34 full-time equivalent teaching positions and 34 school support staff will be cut. The staffing cuts affect more than 30 schools across the city of Camrose and the counties of Camrose, Flagstaff, and Beaver. The school division’s $1.1 million budget decrease and continual decline in student enrolment are the catalysts for the reduction in staff.

Key source: Calgary Herald, May 23, 2011.

Lloydminster contractors to benefit from the construction of RCMP building: The construction of a three-storey, 6000 square metre building, to serve as an RCMP detachment, will draw from the local labour market and include the hiring of electrical and glazing contractors. The nearly $16.5 million project, to be built on the Alberta side of Lloydminster, will begin this summer and is expected to be completed by 2013.

Key Source: Lloydminster Source, May 31, 2011.

Central Alberta schools to see staff cuts: The Wolf Creek School Division will reduce staff by 42 full-time equivalent positions for the 2011-2012 school year. The reductions mostly affect support staff such as educational assistants in the Ponoka and Red Deer areas. The school board indicated their decision to make the cutbacks stem from their budget deficit and lack of government funding for special needs programming.

Key sources: Wolf Creek School Division Media Release, June 2, 2011; Red Deer Advocate, June 3, 2011.

Attrition in school division results in zero teacher cutbacks: Battle River School Division’s previous decision to cut 34 full-time teaching positions has been reversed after enough retirement and resignation notices were received, to enable the retention of the continuing contract teachers who were at risk of losing their jobs. In another positive move, the school division is looking to fill 10 temporary teaching positions for the next school year; these positions may last from two weeks to a full year.

Key Source: The Camrose Canadian, June 15, 2011.

Camrose to develop performing arts centre, create employment: A recently approved $18 million arts centre will create employment for local trades during the project's construction phase, as well as for performers and other operational staff, once the centre is completed. Once completed, the new facility will also serve as a tourist attraction, creating more job opportunities for workers in local hospitality occupations. Although few details regarding the project's timeline and employment estimates are known at this time, the project is expected to begin later this year.

Key Source: The Camrose Canadian, June 28, 2011.

Lethbridge - Medicine Hat

New medical centre expected to help solve physician shortage: Recruitment of physicians is currently underway for the High River Medical Centre, set to open in October 2011. The minimum goal for the Centre is to recruit three new family physicians for 2011 and five over the next five years. It is anticipated that plans for the new facility, involving the retention of experienced teaching physicians to act as mentors, will attract young post-graduate doctors to the rural community.

Key Source: High River Online May 30, 2011; High River Town Crier, August 31, 2010.

Methanol plant re-opened in Medicine Hat: Vancouver based Methanex has re-opened their methanol plant in Medicine Hat creating 86 full-time positions. After sitting idle for a decade, the plant was re-opened in April, due in large part to low natural gas prices, which the facility requires to operate. Municipal support in the form of attractive taxes and reliable utility, power and water supplies, were also factors in the company's decision to resume operations.

Key Source: 2011 Best Communities for Business in Western Canada, June 22, 2011.

Southeast Alberta wind farm development: The wind energy industry in southern Alberta continues to grow, with three wind generation projects slated for development over the next three years. The planned projects including Peace Butte, Wild Rose 1 & 2 and Wild Steer Butte, all located south of Medicine Hat, are forecasted to create about 1,438 jobs. The projects will primarily create construction jobs, however, operation and maintenance occupations will follow once the sites are completed and come online.

Key Source: Economic Development Alliance of Southeast Alberta, June 22, 2011.

Construction slowdown on wind power transmission line: The Alberta Montana Tie Line transmission project has run into funding problems, due to cost escalation and a resulting credit squeeze; threatening further construction of the Lethbridge to Great Falls Montana line. Although no word has come on layoffs, some 150 jobs, on both sides of the Canada-US border, are potentially affected by the slowdown. Tonbridge Power Inc. is working on securing the $25 million necessary to complete the $220 million project that, if completed, would expand the area's transmission capability and open markets for the emerging energy source and facilitate growth of the industry in southern Alberta.

Key Source: Tonbridge Power Inc. News Release, June 29, 2011.

Northern Alberta

Fairview hosting 2011 Alberta 55 Plus Summer Games: The Town of Fairview will get an economic boost this summer, when it plays host to the Alberta 55 Plus Summer Games. In total, 1,000 competitors and their families will attend the games, bringing in approximately $2 million to the local economy. Indeed, local retailers, hotels and restaurants will see a significant boost to their revenues during the four-day event.

Key Source: The Record - Gazette, May 11, 2011; Alberta.ca, June 18, 2007.

Slave Lake facing labour shortages after fire: A temporary job board has been set up to advertise as many as 300 jobs left vacant by the Slave Lake fire, which destroyed buildings and 374 homes in the town. With roughly one third of the town’s residents yet to return, employers are scrambling to find workers. An estimated 50 jobs are being added to the job board daily from employers such as, Bullitproof Construction, McDonald’s, Canadian Tire, and most of the town’s hotels. Slave Lake will be facing labour shortages for quite some time while the town is being rebuilt and will need to come up with creative ways to attract labour to the area.

Key Sources: Edmonton Journal, May 31, 2011.

Northern Light School Division cutting teacher positions: The Northern Lights School Division will trim teaching and support staff positions this fall due to a shortfall in this year’s budget. The school division, covering 26 schools in and around the communities of Cold Lake, Bonneville, and Lac La Biche, is expected to lose the equivalent of 14 full-time teachers and 36 support staff. The planned cuts represent a 4% decline to the school board's current 323 teaching positions.

Key Source: Cold Lake Sun, June 13, 2011.

New gas processing plant to be built in the Northwest: Having received regulatory approval, Calgary-based Alta Gas will soon begin construction on a new $235 million gas processing plant, located 100km northwest of the City of Grande Prairie. When completed in late 2012, the Gordondale facility will be one of the largest gas processing facilities in Western Canada, capable of processing 120 million cubic feet of sour gas per day. The construction of the plant will have an immediate impact to the local labour market, creating 300 to 400 jobs during its construction and 15 to 20 permanent full-time jobs when completed.

Key Source: Daily Herald Tribune, June 27, 2011; altagas.ca, June 22, 2011.