Once Canada’s boomtown, the latest census from Statistics Canada suggests Wild Rose Country is becoming just another Canadian province.
For years, Alberta enjoyed population growth that towered over the rest of the country’s. Energy sector jobs and plenty of them — some offering six-figure paycheques with no university requirement — drew the young and ambitious from sea to sea to sea.
But the 2021 census shows the province has actually fallen behind the national average in growth. There are now 4,262,635 Albertans, 4.8 per cent more than in 2016. The Canadian growth rate was 5.2 per cent.
It’s quite a switch. The 2016 census showed Alberta growing at the rate of 11.6 per cent — more than double the national rate.
Ten years ago, seven of Canada’s eight fastest-growing census districts were in Alberta. This year, the situation is almost reversed — Alberta has seven of the 10 fastest-shrinking municipalities in the country.
For the first time in over 25 years, Calgary isn’t among Canada’s five fastest-growing cities.
Still, don’t look for tumbleweeds blowing down the main streets of Wild Rose Country just yet. Analysts say Alberta is shifting to an economy that looks a lot more like the rest of Canada’s, maybe even a little stronger.
“The source of growth and opportunity going forward will be very similar to what you seen in other economies,” said Trevor Tombe, a University of Calgary economist.
“The growth will be driven by services and increasingly tech. Alberta’s economy is stronger than others, even though the pattern of its growth will approach what we see elsewhere.”
Ten years ago, billions of dollars a year were pouring in to the province’s energy industry, especially the oilsands. Those mines and processing plants are now built.
“I don’t think we have any prospect for those kind of unusual growth rates because they were driven in large part by investment in these incredibly expensive large oilsands facilities,” said Tombe. “Most of that past growth was tied to investment flows that are very, very unlikely to return.”
Oil production reached an all-time record last year. But jobs in the sector haven’t entirely recovered and remain below their 2019 peak.
Albertans are adapting, said Brad Perry of Calgary’s economic development office. In 2019, his organization began offering a seven-month program for oil and gas professionals to take their skills and learn how to use them in other sectors such as finance, clean energy or agriculture.
Its first year saw 1,100 applications for 100 spots. About 70 per cent of its graduates got jobs in their new fields. This year, the Energy to Digital Growth Education and Upskilling Project has filled all of its 320 spaces.
“It’s akin to your stock portfolio,” Perry said. “Maybe we’ve over-indexed (in energy) a little bit and we need to let some of these other sectors start to get a little bit of sunshine.”
“It takes a lot of courage for somebody who has that kind of experience to step out of their comfort zone and really dive in.”
Statistics Canada has noted an outflow of young people from the Alberta in recent years.
But the province’s affordable housing market is expected to help attract and keep young people. Although prices have risen, they’re nowhere near the 25-per-cent growth seen in some Ontario and British Columbia markets.
A recent study from the mortgage brokerage Edison Financial found Edmonton and Calgary had the second- and third-highest rates in the Canada of home ownership among people aged 20-39.
“Millennials are finding it very favourable to put in roots in the Edmonton area and start families and making this their home because it’s more affordable than other places,” said Paul Gravelle of the Realtors Association of Edmonton. “I think it’s a pretty big factor.”
Even in its darkest economic days, said Tombe, Alberta still had Canada’s strongest economy. Don’t look for that to change.
“Alberta’s economy is stronger than others, even though the pattern of its growth will approach what we see elsewhere. The growth rates will be slower than we’ve historically seen.
“(But) over the long term, Alberta remains poised to be the growth leader in Canada.”
The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.
The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.
CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.
This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.
While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.
Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.
The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.
This report by The Canadian Press was first published Nov. 7, 2024.
Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.
As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.
Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.
A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.
More than 77 per cent of Canadian exports go to the U.S.
Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.
“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.
“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”
American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.
It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.
“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.
“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”
A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.
Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.
“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.
Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.
With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”
“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.
“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”
This report by The Canadian Press was first published Nov. 6, 2024.
OTTAWA – Statistics Canada says the country’s merchandise trade deficit narrowed to $1.3 billion in September as imports fell more than exports.
The result compared with a revised deficit of $1.5 billion for August. The initial estimate for August released last month had shown a deficit of $1.1 billion.
Statistics Canada says the results for September came as total exports edged down 0.1 per cent to $63.9 billion.
Exports of metal and non-metallic mineral products fell 5.4 per cent as exports of unwrought gold, silver, and platinum group metals, and their alloys, decreased 15.4 per cent. Exports of energy products dropped 2.6 per cent as lower prices weighed on crude oil exports.
Meanwhile, imports for September fell 0.4 per cent to $65.1 billion as imports of metal and non-metallic mineral products dropped 12.7 per cent.
In volume terms, total exports rose 1.4 per cent in September while total imports were essentially unchanged in September.
This report by The Canadian Press was first published Nov. 5, 2024.
