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More Demand,
More Money?

When fast-food clerks in Fort McMurray get $15 an hour, workers across Canada are wondering if a stint in Northern Alberta is an easy way to beef up their bank accounts.

By Hélèna Katz


[ 2009-03-02 ]

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Wage wars

A booming economy with a higher number of job openings won’t, on its own, drive up salaries, says Nadia Ciani, vice president of human resources and communications at Manpower Inc. For wages to really spike, there has to be stiff competition for workers.

This is certainly the case in Alberta’s Wood Buffalo region, which includes Fort McMurray. For example, according to an Alberta government survey, carpenters in that area make an average of $23 an hour. This wage is on par with Toronto’s $23 per hour, and beats out $19 in Calgary and $18 in Winnipeg. And yet, Fort McMurray carpenters aren’t necessarily any richer.

The cost of living in boomtown

Before being dazzled by high wages, workers should be wary of what Peter Hall, Export Development Canada’s chief economist, calls “boomtown inflation,” referring to domestic costs that can be surprisingly high.

Just how high? The average rent in Fort McMurray is $2,193 per month, according to the Canada Mortgage and Housing Corporation. Robert Kavcic, an economist with BMO Capital Markets notes, “The cost of living is rising to a point where it’s almost not economical for people to move [there] from Central and Atlantic Canada.”


The next Fort McMurray?

Byrne Luft, vice president of marketing for Manpower Inc., says Saskatchewan is expected to have the highest growth in 2009. The province “has a significant labour shortage across all industries because of the trickle-down effect,” says Luft, referring to the financial benefits that sectors (like retail and restauranting) experience when larger industries are booming.

But as the economy is picking up in the former have-not province, so are housing costs. According to Statistics Canada, the average rent for a one-bedroom apartment in Saskatoon grew from $584 per month in 2005 to $693 in 2007. This leaves Saskatooners wondering just how much of their salaries will be eaten up by higher rent.

Different push and pull factors help workers decide what kind of work they’d like to do – and in which province. Read more about these issues:

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