Canadian Economics: Is Saskatchewan the New Alberta?

Filed in archive Economic Outlook on December 31, 2006

With a hot Alberta economy and increasing cost of living people move between Alberta, B.C., and Saskatchewan. I saw this in the 70's and 80's and now it seems that we are seeing it again.

People are, in fact, moving from Alberta to Saskatchewan. The numbers, of course, still favour movement to the west, but for the first time, a certain degree of counter-movement is on. Via 2006 marks pivotal year for [Saskatchewan] business community

Commercial Activity
Here is another indicator, commercial real estate:

Saskatoon became one of Canada's hot spots in business circles. Forget the economic forecasts and predictions. This comes from commercial Realtors who report an unprecedented level of external interest in investing in this area. Given that commercial investors are at the front end of the curve and that the spike in interest has really grabbed hold in the past 12 months, it says one thing -- become accustomed to hearing the phrase "the economy has never been stronger" for some time to come. Via 2006 marks pivotal year for [Saskatchewan] business community

So what does this mean? Money, like water seems to find it's own level and will follow the path of least resistance. The Alberta government needs to start paying attention to the economy to prevent it from becoming overheated, although it might be too late already.

I have heard stories of restaurants in Kelowna, B.C. closing doors because they could not find staff to work for them. I have heard stories of waiters and cooks leaving to go back into construction again because the wages are much better.

So whether you have a business in Alberta, Saskatchewan or anywhere else for that matter you need to develop a human resource and contingency plan to make sure you can keep the employees you have.