Some Canadian sectors and regions are hot and some are not, Bank of Canada Governor Stephen S. Poloz said today in Saskatoon.
One of those hot economic regions is Alberta where over the past ten years, about a quarter of a million people, net – roughly the population of Saskatoon – have moved from other provinces. Last year alone, net migration to Alberta from the rest of Canada totalled nearly 45,000
In the speech delivered to members of the Saskatchewan Trade and Export Partnership, Governor Poloz also said that as a share of GDP, investment in mining and oil and gas extraction has doubled since 2002. As companies step up their investments, they set off a chain of events that draws people in.
Canadians are willing to cross the country, not just for the jobs, but also for better wages. Mr. Poloz said that no matter how the data is cut, it consistently shows that workers in Alberta, Saskatchewan, and Newfoundland and Labrador have seen their wages go up faster than anywhere else in Canada in recent years.
The greater the influx of people, the greater the demand for housing. In hot regions such as Saskatchewan and Alberta where many more houses proportionately are going up than elsewhere in Canada, they are scrambling to keep up with the housing demand. The downside is that the cost of maintaining a home in these provinces has increased by far more than anywhere else too.
You can read the entire speech here.