NDP claims job creation plan working
Alberta’s NDP government laid out its case Monday that it’s helping to create jobs, but Economic Development Minister Deron Bilous acknowledged there are tough times in Calgary as the province continues to struggle with low oil prices.
While the province has seen job growth in each of the last three months — about 25,000 positions in total — October’s job force numbers show nearly 40,000 fewer Albertans working compared to April 2015, just before the NDP took office. The number of unemployed has grown by nearly 75,000.
Calgary, centre of the Canadian energy industry, has been hit particularly hard by oil prices that have hovered just under US$50 a barrel. The unemployment rate in October hit 10.2 per cent, the highest level in 23 years, while Edmonton’s rate was 6.9 per cent, Statistics Canada said Friday.
Bilous told reporters in Calgary that “we are starting to turn a corner,” even as he noted that the city “is in a more challenging position than much of the rest of the province.”
“The trend is a positive sign but by no means am I saying, ‘You know, we are out of the woods, and hey, it’s time to celebrate.’ We know it’s going to take some time to get those unemployment numbers down, but again, this is why we have a number of initiatives we are rolling out,” he said at an event held at Assembly Coworking Space, a hub for tech startups and small businesses.
The report issued Monday links job estimates to specific government policies. Using a figure previously cited, the province says that the NDP’s decision to ramp up spending on infrastructure as an economic stimulus will sustain an average 10,000 jobs over three years.
Incentives for new petrochemical facilities will add up to 3,000 construction jobs and a further permanent 1,000 positions, says the report.
Thousands of other jobs will be supported by new tax credits, support for renewable energy, a reformed energy royalty system and investments in technology companies.
The infrastructure job estimates are “reasonable” but difficult to prove, he said, noting the figures could range from 3,000 to 15,000 positions.
Tombe described the government’s $500-million estimate on the economic impact of the Alberta Investors Tax Credit as “a bit of a stretch.”
“It seems like far too good to be true and they don’t actually provide the analysis that allows them to arrive at that number,” he said.
“So that’s one that jumps out at me as something to be skeptical about.”