Alberta Labour Market Bulletin

October 2011

Alberta Labour Market Bulletin – October 2011 (PDF version, 104 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.

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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

Alberta investment boom supporting burgeoning job market: While all three prairie provinces are Canadian leaders in economic growth, Alberta alone has seen this growth translate into significant job gains. With $24 billion in spending anticipated in 2011, energy sector investment is already supporting Alberta's record employment gains over the first eight months of the year. Despite some early signs of inflationary pressure, the provincial economy does not appear to be overheated. Major projects are experiencing few labour shortages or other bottlenecks compared to the height of the previous boom in 2005-2006. Key Source: RBC Provincial Outlook, September 2011.

Alberta labour market tops in performance: Alberta leads North America with the best performing labour market during the last five years. The Fraser Institute's report “Measuring Labour Markets in Canada and the United States (2011 Edition)” ranks the province first in total employment growth, and second lowest for duration of unemployment. Key Source: Fraser Institute, September 1, 2011.

Enbridge to twin major oilsands pipeline: Enbridge, the Calgary-based energy distribution giant, will spend $1.2 billion to more than double the southern capacity of its Athabasca oilsands pipeline. Scheduled to be operational by 2015, the project will provide 545 people years of construction employment along a 345-km stretch between the production area at Kirby Lake and the Hardisty crude oil hub, southeast of Edmonton. Enbridge has a right-of-way in place for pipeline construction, making the project less complicated than many other current pipeline proposals. The huge private sector investment is another sign of industry confidence in the future of Alberta's oilsands powerhouse. Key Source: Enbridge press release, September 12, 2011.

Alberta not impervious to global uncertainty: Even in Alberta there are signs of the worrisome global economic outlook. Retail sales have slipped for consecutive months, suggesting that consumers are making the connection between their own household debt and the fiscal overhang in Europe and the U.S. Wholesale trade has also eased, mainly due to lower sales in the agricultural supplies industry. Should it proceed, the proposed XL Keystone oil conduit to the U.S. would all but guarantee years of heightened oilsands activity. The pipeline is fiercely divisive across the U.S. but seems increasingly likely to go ahead. Key sources: Statcan data releases September 20 and September 22, 2011; Postmedia News, September 19, 2011.

Calgary and Mountain Parks

Land development project announced: Rio Can Real Estate plans to develop a large multi-use regional shopping centre in northwest Calgary. Once complete in late 2012, the centre will include over two-million square feet of retail and office space, 4 450 residential units, as well as a hotel, a theatre, and a recreation facility. The project will provide opportunities for labourers, tradesmen, and engineers during the construction phase, as well as workers employed in the service sector once the centre is operational. Key Source: www.newswire.ca website, September 7, 2011.

Energy skills required down under: The Opportunities Australia & New Zealand Expo was held in Calgary on September 17 and 18. The two-day event provided information on working in the engineering, mining, and oil and gas sectors of Australia and New Zealand, including available job opportunities. With local energy sector workers having the right education, skills, and experience, this event may have enticed Calgary's labour supply in these fields to consider international opportunities, adding to local employers' competition for workers. Key Source: Calgary Herald, September 10, 2011.

Favourable employment continues: Calgary's labour market will likely remain strong through the fourth quarter of 2011, as 22% of local employers report that they plan to hire between October and December, while 66% state that they will maintain current staffing levels, and 4% remain uncertain of their future plans. Overall, these figures bode well for Calgary, suggesting that employers continue to hold confidence in the local economy. Key Source: Manpower Inc. Press Release, September 13, 2011.

Best Western Hotel development to support labour market: Tenders are being accepted for the construction of a new $10-million Best Western Hotel in Sundre. In addition to creating jobs during the construction phase, the 47 000-square-foot hotel will employ management and service-related occupations once complete, while increasing accommodation capacity for the growing tourism industry. The new hotel is expected to open in September 2012. Key Source: Sundre Round Up, September 13 & 20, 2011.

Construction company to open corporate office in Calgary: Aecon, one of Canada's largest construction and infrastructure development companies, is establishing an office in Calgary to serve as its Western Canadian headquarters. Employing 15 to 20 staff, the new office serves as yet another example of the company's confidence in the local economy. Indeed, Aecon is currently involved in a significant number of projects throughout the region, with more planned for the coming months. Key Source: Aecon news release, September 20, 2011; Calgary Herald, September 20, 2011.

Landmark clothing business closes: Long-time Calgary-based men's clothing retail store, MacLeod Bros., will be closing by the end of 2011, affecting five employees. According to the company, the closure comes as a result of increased business costs and the inability to perform in a highly competitive market. MacLeod's has been in business for 109 years. Key Source: Calgary Herald, September 24, 2011.

Weight-loss business closes: L.A. Weight Loss centres across Alberta will be closing effective September 28. Although the total job loss is unknown, all staff in the four Calgary locations will be affected. The weight-loss company indicates that the closure is due to financial difficulties. Key Source: AM770 News, September 28, 2011.

Edmonton

Video retailer closing remaining outlets: Receiver Grant Thornton is poised to close the 15 remaining Blockbuster Canada outlets in Edmonton, resulting in a loss of roughly 150 jobs. The closures, to occur sometime after September 9, are part of a final nationwide liquidation of Blockbuster Canada's assets. Despite the loss of jobs, demand for retail and service employees in the Edmonton region remains buoyant as construction continues on numerous new shops and restaurants. Key Source: Edmonton Journal, August 31, 2011.

Hiring intentions upbeat: Edmonton's labour market is projected to end the year on a continuing steady hiring trend, with 28% of local companies planning an increase in staff levels for the final quarter. Sixty-two percent of employers plan to maintain their current staffing levels while just 3% are unsure of their hiring intentions. Edmonton captured the number four spot in Canada for the last quarter new hiring intentions among the cities surveyed. Key Source: Manpower Canada Employment Outlook Survey, 4Q11, Local News Release, Edmonton, September 13, 2011.

Construction set to begin on unique campus: Construction and tradespersons are in demand as Clark Builders begins immediate construction on the $ 11.6-million, 30,000-square-foot Clareview High School Completion Centre, scheduled to open in 2014. Teachers and support staff will be required for the estimated enrolment of 600 students at the school, and early childhood educators will be needed for an adjacent daycare and preschool. The City of Edmonton is financing the school's construction cost with repayment to be made by Edmonton Catholic Schools under a lease-to-own agreement. Key Source: Edmonton Catholic Schools, September 20, 2011.

New petrochemical plant opens: Aux Sable Canada has created 10 new operator positions with the opening of an off-gas fractioning plant in Fort Saskatchewan. The new plant will fractionate and utilize 20-million–cubic-feet of fuel gases per day from the Shell Scotford oil sands refinery. The liquids extracted will reduce Scotford refinery's carbon footprint, the equivalent of taking 40 000 cars off the road. An additional supply of feedstock for the refining and upgrading sectors, and the additional ethane supply may stimulate future infrastructure and jobs for the local area. Key Source: Fort Saskatchewan Record, September 22, 2011

Red Deer – Camrose/Drumheller

Red Deer housing construction down: Red Deer's residential construction workers are facing challenging times amid news that new home construction in the city has fallen 14% over last year, while the housing resale market is up 9%. Nevertheless, Canada Mortgage and Housing Corporation forecasts strong economic growth in 2012, including a significant increase in new housing starts, suggesting workers face a positive outlook over the long-term. Key Sources: Red Deer Advocate, August 24, 2011, Canada Mortgage and Housing Corporation Third Quarter Housing Market Outlook, August 2011.

Red Deer economy strengthening: Attendance at the Central Alberta Career and Job Fair was down 30% over last year, providing further evidence the area's economy is improving, with more people becoming employed. The job fair exhibited almost 100 companies, with 30% of them looking to fill over 1 700 positions in the oil and gas sector. The strong presence of oil and gas companies at the event indicates growth in this sector is still very strong and the demand for work is high. Key Source: Red Deer Advocate, September 07, 2011.

Transit funding program to create employment: Red Deer will be upgrading and expanding its transit system from 2012 to 2015, with $12.1 million from the Alberta Government's Green Transit Incentives Program (GreenTRIP). The funding will be used to purchase 40 clean-diesel buses that will replace the current fleet of 17, and expand the number of routes. Overall, this will positively impact the local labour market, creating employment for bus drivers, as well as maintenance and service bay positions. Key Sources: The City of Red Deer Website, September 15, 2011, City of Red Deer contact, September 21, 2011.

Business incubator to support local economy: The Lloydminster Business Incubator (LBI) is set to open in November, providing services such as accounting, assistance in planning, and marketing to start-up businesses. With the assistance of LBI, Lloydminster is expected to experience local job creation and economic growth and diversification. Across Canada there have been high success rates for business incubators, with over 13 000 jobs created and many companies seeing profit after the first year in business. Key Sources: Statistics Canada - Characteristics of Business Incubation in Canada, 2005; Lloydminster Source, September 27, 2011

Lethbridge – Medicine Hat

Construction set to begin on Medicine Hat Regional Hospital expansion: Stuart Olson Dominion Construction Ltd. is set to begin demolition of the Dr. Dan MacCharles Auxiliary Hospital at the Medicine Hat Regional Hospital in preparation for a 19 000-square-metre expansion. The $200-million construction project will be conducted in phases and is expected to be completed by 2015. No estimate has been provided on the number of workers required for the project; however, numerous occupations will be required, including heavy equipment operators, truck drivers, and carpenters, among others. Key Source: Alberta Government News Release, September 15, 2011.

Medicine Hat infrastructure projects delayed: The City of Medicine Hat announced it has postponed two major infrastructure projects, a good sign for the local construction industry. The City reports that it received a low number of expensive bids and attributes this to the large number of projects already underway, preventing construction companies from taking on new work. Nevertheless, the City plans to re-issue the call for tenders on the two projects in the future with the goal of starting construction in 2012. Key Source: Medicine Hat News, September 22, 2011

Northern Alberta

Province releases 20-year land supply to Wood Buffalo: The Municipality of Wood Buffalo has been given a 20-year land supply from the Province to be used for residential housing and commercial building space in the Fort McMurray area. In addition to the creation of new construction jobs, the land development will help to address a lack of affordable housing and low vacancy rates in the community, two realities that have hindered Fort McMurray's ability to attract much needed workers. Key Source: woodbuffalo.net. & Fort McMurray Today, August 29, 2011.

County begins recruitment of new firefighters: The Grande Prairie County Fire Department is expanding their operations and is looking for individuals to fill upcoming positions. The local fire department is planning to add 20 on call firefighters and 11 full-time firefighters to its ranks. It is hoped these positions will be in place by the start of 2012. Key Source: Daily Herald-Tribune, September 01, 2011.

Walmart begins expansion in Grande Prairie: Walmart has begun a major expansion of its Grande Prairie location, increasing the size of the store by 50%. The expansion is expected to create an estimated 200 construction jobs over the next year, while creating an additional 60 positions to the current staff of 200, when completed in the summer of 2012. The expansion comes as great news for those in the region looking for work in the trades or in the retail industry. Key Sources: Daily Herald-Tribune, September 7, 2011 & manta.com.

Fort Chipewyan opens new college campus: A new $3.5-million state of the art college has opened in Fort Chipewyan that will accommodate 70 to 100 students and employ 11 staff in the Northern Alberta community. Acting as a satellite campus for Fort McMurray's Keyano College, the new facility will focus on providing training for trade and oil field operations. This represents great news for the Wood Buffalo region, which has been facing a growing population and persisting labour shortages within the trade occupations. Key Source: keyano.ca. & Fort McMurray Today, September 22, 2011.