There is no question that the Alberta economy is booming. There is also no dispute over the fact that the influx of residents seeking available jobs has put a bit of a strain on the rental market. Vacancies are down, rental rates are up and that’s just how it is. A move to impose rent control in Alberta has failed, to the delight of investors and the dismay of renters. Ray Sanyluk, Housing Minister made the announcement recently, noting that the government didn’t want to get involved with the free market.
Nearly 50,000 people came to Alberta in 2012, attracted by jobs and a positive economy. Salaries are among the highest in Canada, averaging $1,117.58 per week this past August. As a comparative example, that is nearly an $8.00 per hour increase over wages in Prince Edward Island. Rental rates for this past August show an increase of 7.2 percent for a typical two-bedroom apartment when compared to August of 2012.
Rumors are starting to circulate about a change in the Alberta job market, albeit a slight one. Statistics Canada just released a report noting that in October, the unemployment rate went up to 4.4 percent, a tad higher than the 4.3 percent seen in September. For the first time the number of people coming into the province for work is outpacing the jobs being created, but by such a slight margin that it is still considered a job seekers market.
Another trend is the decrease in full time jobs, down by 21,300, compared to the number of part time positions coming available, an increase of 22,300. Health services, the hospitality industry and agriculture are seeing the largest gains, 14,700 jobs, 14,500 jobs and 9,300 jobs, respectively.
All of these numbers still leaves Alberta’s unemployment rate at a healthy level. Anything between 4.5 percent and 5 percent is considered balanced. Alberta’s 4.4 percent is a good number. Looking over the last year, the average was 3.5 percent. Compare that to the national unemployment rate of 6.9 percent, which saw no change between September and October of this year. The country showed a gain of 13,200 jobs, the second month is a row to show positive numbers.
So where are some of those Alberta jobs happening? If you’re into agriculture, one hot commodity right now is potatoes. No pun intended. Last year Idaho, the top producer of potatoes in the United States, had a bumper year, virtually flooding the market with spuds. This year Idaho’s crops are within normal numbers, creating a need for this underground crop form other sources. In Alberta potatoes are either grown for seed to be sold to other farmers, to potato chip or French fry making firms like Frito Lay or Old Dutch or to the market to be sold to the public. Either way, the Farm Product Price of potatoes is up, $13.65 per hundredweight compared to the five year average of $10.74 per hundredweight.
Construction also looks healthy in Alberta. Building permits in September were up by 5.2 percent over the previous August, accounting for $1.43 billon in revenue. Residential permits saw the largest jump, bringing in $954 million of that figure, close to the June 2007 record of $978 million. Considering the influx of people into the province, that makes perfect sense.
via:http://edmontonrealestateinfo.com/job-market/
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