Chris Bolin
Alberta is rebounding from the great slump, and some of the province's old problems are coming back too.
"Many in Western Canada are starting to sense some of the problems encoutered during the height of the pre-recession commodity boom, like skilled labour shortages and cost and price pressures," BMO Nesbitt Burns economist Robert Kavcic said in a report.
"While average weekly earnings in Alberta did rise a solid 5.7-per-cent year-over-year in January (close to the pace seen during 2006-08), other indicators still suggest quite a bit more slack."
Here's what Mr. Kavcic found, comparing now and then:
Alberta's jobless rate stands at 5.7 per cent, compared to just 3 per cent in October, 2006.
The employment rate stands at 69.2 per cent, versus 72.6 per cent in October, 2008.
Inflation, excluding energy and food prices, is just 0.3 per cent on an annual basis, compared to 5.4 per cent in 2007.
Consumer prices for rent are down 0.4 per cent on an annual basis, compared to inflation of 7.3 per cent in February, 2008.
Calgary's office vacancy rate stands at 13.2 per cent, compared to just 1 per cent in late 2006.
"So, while activity is indeed picking up smartly in Alberta, it looks like we're still pretty far from the extreme capacity constrains and upward wage/price pressure of the previous boom," Mr. Kavcic said.
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