The Business Council of Alberta recently released their quarterly economic update, the Summer 2024 Alberta Snapshot. Covering key aspects of Alberta’s commercial landscape – economic indicators, business sentiment, policy developments, and projections for the province’s overall outlook – the report offers a clear snapshot of both current conditions and expected trends.
Alberta’s economy is navigating challenges like high interest rates and inflation with resilience, showing few signs of serious distress. The labour market presents a mixed picture, with Calgary’s unemployment rate reaching 8.1% – the highest among major cities – though this may be misleading due to significant workforce expansion in the province, especially in Calgary.
Business activity remains robust, with ongoing hiring and strong optimism, particularly in Edmonton. Exports of petroleum products and a rise in housing starts are bolstering recent growth, supported by the completion of the Trans Mountain Pipeline, high oil prices, and migration trends.
Particularly noteworthy to CLRA members, the report highlights that optimism is strongest among professional services and construction. More than 80% of businesses in these fields express varying degrees of optimism about their future prospects, despite facing significant challenges such as labour shortages; an issue that CLRA is all too familiar with (and currently addressing with our ongoing Build Your Future campaign).
However, in the oil and gas and agriculture sectors, only around 10% of businesses report feeling strongly optimistic. Factors contributing to this subdued outlook include inflation concerns in the oil and gas industry and rising costs of inputs and insurance in agriculture, which are identified as major obstacles hindering future growth.
Overall, the Alberta Snapshot serves as a valuable resource for policymakers, businesses, investors, and the public to understand the current economic conditions, and future prospects, of Alberta’s economy.
Read the entire report here.
