Sun Rises in the West...

According to a news story in Canwest papers by Eric Beauchesne, the seven fastest-growing cities are in Western Canada

OTTAWA - The economic gap between eastern and western Canadian cities continues to widen, according to the Conference Board of Canada's latest outlook for 13 cities across the country.
"Although economic growth has been uneven between eastern and western cities for several years, 2007 is turning out to be a year in which the East-West disparity in economic growth is the greatest," said Mario Lefebvre, director of the board's metropolitan outlook service.
Led by Saskatoon and Calgary, the seven western cities included in the survey are expected to grow faster than all six eastern Canadian metropolitan areas, the report said.
With after-inflation growth of 4.7 per cent, Saskatoon will dethrone Calgary as the fastest growing city economy this year, it added.
"The provincewide influx of interprovincial migrants into Saskatchewan, due to lower costs of living and a strong overall economic performance, is benefiting Saskatoon's housing sector," the report said.
Widespread gains will drive growth in Regina this year to a decade-high 3.5 per cent, it added.
Edmonton's economy is not growing as fast this year as it did in 2006 when the economy expanded 6.4 per cent, but healthy growth of 3.6 per cent is still forecast, said the report, crediting still robust construction, particularly on the non-residential front, and soaring consumer spending.
The city's growth rate is expected to hit 3.9 per cent in 2008-2011, tied with Toronto and trailing only Calgary at 4.3 per cent.
Calgary, the leader over the past two years, will slip to second this year with 4.4-per-cent growth, which, while down from last year's spectacular 7.7-per-cent, is more sustainable, the Conference Board said.
With all sectors of the city's economy performing well, job growth will remain strong, leading to an eight-per-cent increase in retail sales.
Winnipeg's economy is also firing on all cylinders, driving growth to 3.7 per cent, the strongest performance since 1998, the report said, adding that construction will be an important contributor to growth thanks to major infrastructure spending and rising housing starts.
Growth this year will also moderate in Vancouver to 2.9 per cent and Victoria to 2.8 from 3.7 per cent for both cities last year, reflecting a stagnant manufacturing sector in Vancouver and a decline in housing construction and American tourists in Victoria.
Meanwhile, further setbacks in the manufacturing sector are derailing the recovery of eastern cities, the think-tank said.
"The strong Canadian dollar and weak U.S. demand have dampened Toronto's outlook," it said, forecasting growth of 2.7 per cent, which it described as well below potential for the country's largest metropolitan economy.
In contrast to most eastern Canadian CMAs, Quebec City's manufacturing sector has expanded this year and last, but housing starts are shrinking, limiting growth to 2.6 per cent this year.
Halifax's economy will follow with a 2.5-per-cent expansion, as strong growth in services and a rebound in manufacturing sector help offset slow growth in housing and weakening construction.
The national capital metropolitan region is experiencing a modest economic slowdown this year to 2.3 per cent, due to the end of the federal government's hiring spree and sluggish construction activity, the report said.
Ongoing weakness in manufacturing, offset in part by growth in services and non-residential construction, will limit Montreal's economy to just 2.1-per-cent growth this year.
Although the services sector and construction activity are doing well, the manufacturing outlook for the steel city continues to drag Hamilton's economy down; real GDP growth is forecast to come in at 1.3 per cent this year.
ALL IN THE WEST
Projected 2007 growth:
Saskatoon 4.7%
Calgary 4.4
Winnipeg 3.7
Edmonton 3.6
Regina 3.5

Source: Conference Board of Canada

Worker shortage in Red Deer becomes acute

The Canadian Press reported yesterday that the Couche Tard Chain is going to great lengths to recruit workers in Red Deer.

Faced with a labour shortage in Alberta, Alimentation Couche-Tard (TSX:ATD.B) is recruiting in Ontario and the Maritimes for its convenience stores and is offering enticements such as apartments and regular flights back home to job seekers.
The Quebec-based convenience store operator is also offering potential employees the shared use of a car and the possibility of winning a cash prize, the annual meeting was told Wednesday.
CEO Alain Bouchard told shareholders these incentives are paying off.
He said Couche-Tard has been able to keep its doors open at night and on Sundays while its competitors have been forced to close down for those shifts due to a lack of staff.
"Our competitors are closing early," Bouchard said. "We're not."
Couche-Tard pays $9 hourly in Quebec while it pays staff $12 to $14 an hour in Alberta.
Bouchard said Couche-Tard executives in Alberta had to find other ways to attract and retain staff.
"They are recruiting in places where people are looking for work, such as Toronto, and they offer an apartment, shared use of a car, regular flights home and participation in a lottery for cash awards."
The hot Alberta economy, he said, has a down side.
"The economy is so strong right now that casual wages are sky-high and the labour pool is empty," he said, adding that out-of-the-ordinary solutions needed to be found.
Although the labour shortage is most acute in oil-rich Alberta, many sectors of the economy in other parts of the country are also finding it difficult to find workers.
According to the latest monthly figures from Statistics Canada, the national unemployment rate was just 6.0 per cent in July, the lowest since 1974.
Couche-Tard operates more than 5,500 convenience stores throughout North America, is aiming to nudge the 6,000-mark in fiscal 2008.
The company has said it intends to build 60 stores and purchase approximately 250 others throughout the year.