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Good and bad in Alberta job numbers

Author: Colin Craig 2017/12/08

This past November, Alberta’s NDP began trumpeting the claim that Alberta’s economy has seen an increase of “ 51,000 new jobs over the past year.”

While there are some positive signs in recent job figures for Alberta, when one looks at the big picture, there is also cause for great concern.

Statistics Canada data purchased by the Canadian Taxpayers Federation shows that from October 2016 to October 2017, full-time jobs are up 53,300 positions.

The increase includes 3,200 new government positions, 23,400 new private-sector jobs and 26,700 new self-employed jobs.

The increase in non-government jobs is especially positive for Alberta, as this is the part of the economy that produces goods and services and pays taxes that fund government services.

However, if we trace Alberta employment figures back to May 2015, when the Notley government took office and began implementing their policies, we see a very different trend.

Since that time, there has been an increase in government jobs by 12,400, a decrease of 73,100 full-time private-sector jobs and an increase in self-employed positions by 800.

The numbers are even bleaker if we go back to October 2014 — before Alberta’s recession hit.

Since that time, government employment has ballooned by 59,300 positions while non-government jobs are down nearly 80,000 positions.

How can taxpayers afford a shift of 59,300 people from non-government jobs to government jobs?

All those new government positions require tax dollars to fund them — each employee comes with a salary, benefits, office space, laptop, etc.

Clearly, Alberta is in desperate need of private-sector job growth.

Fortunately, addressing the problem includes several taxpayer-friendly options.

First, the government should make balancing the budget a priority.

Right now, when companies consider investing in our province and creating jobs they find a government that has implemented a surprise carbon tax, raised business taxes by 20% and increased personal income taxes by upwards of 50%.

They also see a government that is spending more than $10 billion each year than what it takes in.

As long as the provincial government continues to run large deficits and refuses to restrain spending in a meaningful way, the more investors will worry that additional tax increases may be on the way.

And if they’re not investing and starting up businesses here, then they’re not hiring workers either.

Second, the government could eliminate its job-killing carbon tax. How many more news stories do we have to see about businesses shutting down due to the carbon tax before the government realizes it needs to pull the plug on the destructive tax hike?

Third, the government should also expand the Taxpayer Protect Act so that no more major tax hikes or new taxes can be implemented without voter approval.

Passing such legislation would provide even more confidence to those considering an investment in Alberta.

Again, we’ve seen some positive signs in Alberta’s job numbers, but if one digs a bit deeper the job figures provide great cause for concern.

To address the problem, we need a much more fiscally responsible approach.


— Colin Craig is the Interim Alberta Director for the Canadian Taxpayers Federation.
This column was published by the Calgary Sun on December 8, 2017


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