Alberta to lead country in job creation
Source: CAL - Calgary Herald
Dec 16 03:03
Page: C3
Section: Calgary Business
Edition: Final
Byline: Mario Toneguzzi
Alberta's employment sector is expected to lead the country next year with an increase of 2.3 per cent, up significantly from a "scant" 0.5 per cent in 2010, says a report released Wednesday by RBC Economics.
Its latest Provincial Outlook report said the anticipated increase represents the creation of 37,000 jobs and "will usher in the highest total of new employment opportunities since 2007 which should ultimately contribute to a boost in population growth."
"With interest in developing Alberta's oilsands growing ever higher, the gush of capital spending on megaprojects is expected to continue next year and beyond," said Craig Wright, senior vice-president and chief economist for RBC.
"This will pump tremendous activity into the provincial economy and act as a catalyst for both faster job growth and stronger migration from outside the province."
RBC said Alberta's economy continues to recover from its "severe" recession with real GDP set to grow 3.4 per cent in 2010 and then jump to 4.3 per cent in 2011. Next year Alberta's economic growth will be second only to Saskatchewan's 5.3 per cent, representing the fastest growth in the province since 2006.
"Improvements in the employment market helped reverse the net migration outflow to other provinces that earlier slowed population growth to the lowest rate in 15 years," said Wright. "These are the kinds of turnarounds that will spread the recovery more widely throughout Alberta's economy next year."
In 2011, retail sales are expected to soar to a rate of 5.6 per cent, higher than any other province, added RBC. "This, along with the 5.1 per cent increase in consumer spending expected this year, will go along way toward reversing the massive 8.4 per cent decline experienced in 2009," said the report.
In 2012, energy-related spending and the expanding of non-conventional oil production will help power the Alberta economy. RBC forecasts the province will sustain GDP growth of 3.8 per cent, which will keep the province near the top of Canada's growth rankings.
At the national level, RBC forecast economic growth of 3.1 per cent in 2010, 3.2 per cent in 2011 and 3.1 per cent in 2012.
A provincial outlook report released Wednesday by TD Economics predicted Alberta would see real GDP growth of 2.8 per cent this year, 3.6 per cent in 2011 and 3.4 per cent in 2012.
TD Economics said Alberta's economic growth would be just behind Saskatchewan and Newfoundland and Labrador's 3.7 per cent next year but Alberta would lead the country in 2012.
