Alberta on the rebound

Gone is Alberta’s jack rabbit economy – in 2009 it looked more like a turtle crawling backwards.

ATB economist Todd Hirsch speaks about the rising TSX to the Central Alberta Manufacturing Association Wednesday night.

Gone is Alberta’s jack rabbit economy – in 2009 it looked more like a turtle crawling backwards.

But that turtle has a grin on its face, says an Alberta economist.

Todd Hirsch, senior economist at ATB Financial, said despite the recession, a more balanced job market, a stable housing market, and rebounding oil prices are working in Alberta’s favour.

“Despite the fact we’re in this nasty recession, people from other provinces, on a net basis, are moving to Alberta. They are still trickling in. That’s good news for the housing market. It’s good news for business and personal services,” said Hirsch in his presentation to members of Central Alberta Rural Manufacturers at Red Deer Lodge on Wednesday night.

Alberta may have an unemployment rate of 7.1 per cent, but if provincial migration is taken out of the equation, the unemployment rate would only be six per cent, not far from five per cent which is considered a balanced job market, he said.

“At three percent, it’s too tight. Employers have to trick people to coming to work for them” said Hirsch, recalling how during Alberta’s recent boom he heard about an oil company giving rig workers a bonus if they showed up to work for five days in a row.

“I don’t want to sound glib for people who are without work at the moment because that is miserable, but the overall job market in Alberta is not that bad.”

Red Deer’s manufacturing sector is in a “soft spot” right now, but Hirsch is optimistic there will be slow growth in 2010.

“A lot of the manufacturing in Central Alberta feeds into that conventional drilling activity. When gas prices are low, drilling is down. When drilling is down, there’s not as much need for all the fabricated materials that go into it.”

But manufacturers in Red Deer are small enough to adapt and take on different lines of production, even though diversity never seems to stick when oil and gas prices soar.

“We always want to diversify, then in the boom years — forget diversification. We’re all too busy getting rich off of oil and gas money.”

Companies that aren’t involved in oil and gas actually get crowded out of the market, unable to hire workers because everyone is going into the oil and gas sector, he said.

“We’re a resource economy.”

szielinski@bprda.wpengine.com

Just Posted

Red Deer area businesses recognized at Business of the Year Awards night

“It’s an honour just to be nominated.” The popular words echoed throughout… Continue reading

Child sex offender should get 12 years: Crown prosecutor

Stuart Peter Hunt has pleaded guilty to 10 child sexual exploitation and pornography charges

Legalizing cannabis cost estimate for Red Deer just under $400k

Although the province of Alberta has announced $11.2 million for cannabis legalization,… Continue reading

WATCH: Every square tells a story: Edmonton expert is exploring Red Deer’s quilting history

Community members can bring in family heirloom quilts for documentation

Red Deer-area dads going through divorce are invited to Man Up

Support group formed to focus on positive activities, networking

WATCH: Two weeks away from Canadian Finals Rodeo in Red Deer

In just two weeks, Ponoka’s Shayna Weir will compete with the best… Continue reading

PHOTO: Say goodbye to City Hall Park flowers

A sure sign that winter is on its way is when City… Continue reading

PHOTO: Chew On This! campaign draws attention to national poverty

Lunch bags were being handed out in front of The Hub downtown… Continue reading

Wickenheiser, Pegula reflect NHL’s trend toward diversity

BUFFALO, N.Y. — With a laugh, Kim Pegula’s competitive nature kicked in… Continue reading

Harry and Meghan bring rain to drought-stricken Outback town

DUBBO, Australia — The Duke and Duchess of Sussex were jokingly thanked… Continue reading

TV Review: A Roseanne Barr-less ‘The Conners’ is a triumph

NEW YORK — Can there be a “Roseanne” without Roseanne? The answer… Continue reading

Canadian manufacturing sales fell 0.4 per cent in August: Statistics Canada

OTTAWA — Statistics Canada says manufacturing sales fell 0.4 per cent to… Continue reading

Brian Mulroney joins board of directors of New York-based pot company

NEW YORK — Former prime minister Brian Mulroney is joining the board… Continue reading

Canadians waking up to legalized cannabis: ‘My new dealer is the prime minister’

ST. JOHN’S, N.L. — Canadians across the country woke up to legalized… Continue reading

Most Read