Alberta Labour Market Bulletin

September 2011

Alberta Labour Market Bulletin – September 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.

Content is intended for personal and public non-commercial use.

We welcome your feedback.

E-Mail:

W-T-Bulletin-Editor-Editeur-SC-GD@hrdc-drhc.net

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

Province-wide

Economic growth forecasted: Intensified oil sands production will strengthen Alberta's economy over the next year, according to the Conference Board of Canada. Indeed, Alberta's thriving energy sector is the basis for the province's significant growth in construction, manufacturing, transportation and warehousing, and wholesale trade. Over 65,000 new jobs are forecast in 2011, bringing more people to the province. This in turn will benefit retail and service-producing industries as consumer demand rises. Key Source: Conference Board of Canada Summer Outlook, August 1, 2011

Albertans confident about economy: A survey from PwC and Leger Marketing indicates that consumers and business owners in Alberta are confident in the provincial economy. At the same time, the vast majority of survey respondents believe that a labour shortage is imminent. Approximately 60% of all business leaders surveyed expressed concern about the impact a shortage will have on recruitment and retention. Furthermore, more than one-third of consumers feel that increased employment will move people into higher-paying jobs, resulting both in a lack of home-service trades people and in a decline of service in retail and hospitality industries. Key Source: Calgary Herald, August 8, 2011

Employment growth three months in a row: The number of jobs in Alberta rose for the third consecutive month, allowing Alberta to regain the number of jobs lost during the recession. Approximately 12,400 jobs were created in July; however, almost three-quarters of these were part-time. Nevertheless, this is a 3.8% overall increase compared to the same period last year. Key Sources: Statistics Canada, August 5, 2011; Edmonton Journal, August 6, 2011

Alberta to lead country in 2012 pay increases at 3.4%: A survey of 660 Canadian employers indicates Alberta pay rates will increase ahead of the current rate of inflation, while the average national increase of 2.8% will be about the same as the inflation rate. Booming mining, oil and gas sectors are pushing the province to a higher rate of increase compared to the national average. These sectors can respond to the tight labour market with higher pay packets as profits are good, and the industries are capital rather than labour intensive. Key Source: Hay Group, August 23, 2011

Record oil and gas land sales: Technological advances, producer confidence, and strong oil and gas premiums have contributed to record oil and gas land sales in the province. Sales to date already exceed 2010 totals and are predicted to reach over $3 billion by year's end, more than double the expected amount. In turn, drilling activity is expected to escalate, creating higher demand for oil rig crew members and workers in hospitality-related industries. Key Source: Calgary Herald, August 25 & 26, 2011

Calgary and Mountain Parks

Federal funding awarded to affordable housing project: Birchwood Properties Corp. has received $1.6 million in federal government funding under the Affordable Housing Initiative to develop an affordable rental property in Calgary. Construction of the six-storey, 70-unit building is expected to begin in August, with an unknown completion date. The housing initiative will ensure tenants pay rent at 10% below the Calgary average for 20 years. Not only will this project allow low income families access to affordable housing, but it will also provide more employment opportunities to construction and trade workers during the building's development. Key Source: Calgary Herald, August 6, 2011

Calgary housing starts down in July: Canada Mortgage and Housing Corporation (CMHC) reported that Calgary experienced a 44% year-over-year drop in new housing construction in July, largely due to a competitive housing resale market. According to CMHC, housing demand is expected to increase over the next few months, due to strong employment growth and migration. Despite fewer houses being built, construction employment year-over-year for July remained roughly the same, indicating that job opportunities in construction are not declining. Key Source: Calgary Herald, August 9, 2011

Calgary housing and commercial developments underway: Melcor Developments is currently developing over 1000 housing units and over 200 hectares of commercial property. The developer expects housing construction to begin in 2013-2014 with a completion date dependant on home-owner demand, which has been gaining momentum. Calgary's housing market is expected to increase slightly this year, and these large-scale projects will provide a boost to the industry and its employees in construction and trades. Key Source: Calgary Herald, August 13, 2011

Golf course housing development set for Calgary's northwest: Cove Properties is beginning development of a multimillion-dollar housing project at the 18th hole of the Valley Ridge Golf Course. Construction of the complex, consisting of 40 condo apartments and 15 townhouses, is scheduled to begin this fall with occupancy tentatively planned for late 2012. This development is promising for the local construction industry, and with 12 units sold in the first week of sales, it provides further evidence that Calgary's housing market is gaining momentum. Key Source: Calgary Herald, August 20, 2011

Edmonton

New recreation centres for the suburbs: This summer the City of Edmonton will break ground on two new $100 million recreation centres in The Meadows and Clareview neighbourhoods. The new multipurpose complexes will create jobs during their construction and will require operational staff for hockey rinks, libraries, dance studios and other facilities once the community hubs are complete by early 2014. Key Source: Edmonton Journal, August 3, 2011

Major retail project to bring jobs: Foundation work has begun on the Emerald Hills retail and professional complex in Sherwood Park, increasing demand for construction and trades workers. The 25-hectare project, headed by WAM Development Group, will bring new retail jobs to the area with the completion of a Walmart store in January 2012. A variety of fashion and furnishing retailers, restaurants, and a home improvement store will open six months later, creating additional jobs. Key Source: Edmonton Journal, August 6, 2011

Oil sands infrastructure jobs: Edmonton-based WorleyParsonsCord recently received a $41-million contract for the construction of approximately 100 pipe rack modules to be used at the MEG Energy Christina Lake oil sands project. Although it is not known how many jobs will be created, work for fabricators in the area will certainly increase, as the modules will be constructed at the company's local facilities. Key Source: WorleyParsons Limited, August 10, 2011

Upscale denim store opens: Los Angeles-based premium denim-lifestyle brand, 7 For All Mankind, is hiring management and retail sales staff with the opening of a West Edmonton Mall location on August 26th. The number of workers required is unknown. Nevertheless, the opening of this prestigious, high-end shop is a show of confidence that Edmonton's retail market is on the rise, a good sign for those seeking employment in sales. Key Source: 7 For All Mankind press release, August 22, 2011

Job losses at window coverings manufacturer: Hunter Douglas Canada is eliminating 130 jobs with the immediate closure of its Edmonton fabrication facility. Workers were offered severance packages and transition support, with a few employees staying on until December 30 as the company consolidates manufacturing to its Ontario facility. While a disappointing loss for the employees, prospects for finding work in the city have improved. The local unemployment rate in July was 5.3%, the lowest rate in two years, and employment has returned to near pre-recession levels in Edmonton's manufacturing sector. Key Source: Statistics Canada & Edmonton Journal, August 26, 2011

Red Deer – Camrose/Drumheller

Institution expansion to increase construction jobs: Public Works and Government Services Canada's expansion of the minimum-security institution in Drumheller is expected to increase construction job opportunities. The 16-month project, to break ground in August, will be completed for the 2013-2014 fiscal year and will provide space for 50 additional beds. The expansion is good news for the area which, as of June 2011, has not managed to reach the construction employment levels experienced the same time last year. Key Source: The Drumheller Mail, July 15, 2011; Labour Force Survey, June 2011

Red Deer affordable housing project receives government funding: The Piper Creek Foundation is building a $7.9-million housing complex, with funding close to $5.2 million being provided by the provincial government's Affordable Housing Initiative and the federal Economic Action Plan. The seniors' building, expected to break ground in August and be completed by fall 2012, will include 40 units and will rent at 10% below market value. Construction employment in the Red Deer area in July was slightly depressed from last year, and this project will help bolster employment in this industry. Key Source: The Piper Creek Foundation Website, July 21, 2011; Government of Alberta, July 21, 2011

Commercial centre development to employ local contractors and tradesmen: Land development is currently underway for a 20-acre, multi-use commercial centre, which will employ local contractors and tradesmen in the Lacombe area. Although a completion date has not been set for the complex, the businesses currently set to occupy the space include Canadian Tire, a restaurant, retailers, and a hotel. This development will create a large amount of construction and retail opportunities, and is considered a boost to the local labour market. Key Source: The Lacombe Globe, August 4, 2011

Business school opens in downtown Red Deer: Red Deer College has completed construction of the new Donald School of Business located downtown at the Millennium Centre. Previously located on the outskirts of Red Deer, the new school will now enable students to connect with the city's enterprise core through seminars, workshops, and mentorship and will help them gain knowledge from the community's business leaders. Moreover, on September 2nd, when students and faculty begin classes, retailers and service industries will see a boost in business that may spur further economic activity and contribute to downtown revitalization. Key Source: Red Deer Corridor Website news release, August 9, 2011

Lethbridge – Medicine Hat

Wind power projects approved: Construction and maintenance jobs will be created following the Alberta Utilities Commission's recent approval of a 240-kilometre transmission line and related substations stretching from Brooks to south of Medicine Hat. The project, scheduled to begin construction in the summer of 2011, will connect several wind farms to the electricity grid, adding a proposed 1,200 megawatts in capacity. The endeavour aims to provide Albertans with access to new green sources of electricity to power their homes, farms and businesses. Key Source: AltaLink news release, July 29, 2011

Jobs for landscape and construction workers: The Brooks Golf Club is spending $700,000 on renovations, course repairs and a lake expansion. Construction workers will be required until the end of September, if the weather cooperates, and landscapers will be needed next season until mid-June 2012 to re-sod and renovate greens. Financing came from member donations and a grant from the County of Newell. Key Source: Brooks Bulletin, August 2, 2011

Southern Alberta's first biogas plant: Crews recently broke ground on a $30-million co-generation plant in Lethbridge's Rave Industrial Park, increasing the demand for construction jobs in the area. When completed in early 2013, the facility will employ 10 full-time operators. The plant will generate a potential supply of heat for the area's greenhouses or other commercial buildings, along with enough electricity to power 2,500 homes each year. Key Source: Lethbridge Herald, August 13, 2011

Construction on the upswing: Contractors and trades people in Medicine Hat are experiencing an increase in employment, due to new city developments and renovations. Indeed, construction has already begun on a new building that will house three physicians' offices, a drug store and a coffee shop. In addition, a new restaurant is currently being built, and the downtown Telus building is undergoing $1 million in renovations. Key Source: Medicine Hat News, August 17, 2011

Southern Alberta wind energy industry receives a boost: The Montana Alberta Tie Line (MATL) project is set to be revived with the proposed acquisition of Tonbridge Power by Calgary-based Enbridge, pending shareholder approval. In June, over 100 construction workers from Canada and the US were affected when the project was stopped due to credit problems. Enbridge has committed $300 million toward the completion of the MATL project. Not only will this commitment bring back construction jobs, but it will also help to expand the local wind energy industry by increasing the area's transmission capacity. Key Source: Enbridge Inc. news release, August 16, 2011

Northern Alberta

Province finalizes funding for carbon capture project: The Province of Alberta is contributing $285 million to the Swan Hills Carbon Capture and Storage Project, allowing the project's existing plant to be upgraded. The renewed plant will employ new technologies for the capture and storage of 1.3 million tons of carbon dioxide annually, which will be used to improve oil recovery in the region. Construction of the facility is expected to begin in early 2013, creating 200 construction jobs and 80 permanent plant jobs when completed in 2015. Key Source: Globe and Mail, July 27, 2011; Alberta.ca, July 27, 2011

New nursing positions created in Northern Alberta: Alberta Health Services will be hiring 25 more nurses in Northern Alberta by the end of the month, with most jobs already posted to their website. The new positions are needed due to the construction of several new health care facilities across the northern region. Within the next few years, a new hospital in Grande Prairie, a continuing-care centre in Fort McMurray, and a regional health centre in High Level will be completed, benefiting those looking for nursing jobs in the region. Key Source: Fort McMurray Today, August 4, 2011

Green incentive program opens up job opportunities: The municipality of Wood Buffalo is expanding its public transit system with a $35.9 million boost from the Alberta Government's Green Transit Incentives Program (GreenTRIP). Few details are known at this early stage of development; however, the expansion will create construction job opportunities in the short-term and increase the need for bus drivers and maintenance workers once completed. The funding will also allow the municipality to purchase fuel-efficient buses which will meet the ever-growing transportation needs of residents, while reducing Wood Buffalo's impact on the environment. Key Source: Regional Municipality of Wood Buffalo media release, July 29, 2011

Aboriginal youth get experience in forestry: A Grande Prairie Regional College program, just finishing its third year, is aimed at reducing the Aboriginal youth unemployment rate in the region and tapping an under-represented labour pool. The program provides Aboriginal youth between the ages of 15 to 17 with experience as foresters during the summer months, with the hope that some will be attracted to the industry. Currently, the unemployment rate for Aboriginal youth aged 15 to 24 stands at 21%, compared to non-Aboriginal youth at 10.6%. Key Sources: Daily Herald-Tribune, August 22, 2011; Statistics Canada's Labour Force Survey

Fort McMurray begins construction on new airport: Construction has begun on the nearly $200 million expansion to Fort McMurray's regional airport. The facility, originally designed to accommodate 280,000 passengers annually, has been handling over 700,000 travelers annually since 2009. Improvements to the airport will include a second runway, a new 15,000 square ft. terminal, and improved amenities. While few details are known about the overall number of jobs to be created, it is expected the amount of construction work will be substantial before the airports completion in April 2014. Key Source: flyfortmac.ca; Fort McMurray Today, August 30, 2011