Move to the West Young Men and Women!
Alberta’s economy has increased its activity throughout 2011 as average wages started to increase after stopping all together during the recession. Other Canadian provinces haven’t been so lucky, especially in the highest populated province Ontario, where wage increases have ceased entirely.
Before the economic boom in Alberta, Ontario actually had a higher weekly earning average! As the recession came, the gap between the two provinces was approximately 100 dollars a week, going up to about 150 dollars.. If we take these numbers and apply the proper math over a year’s time, the average worker in Alberta makes around $8,000 more than in Ontario.
Some can speculate as to why this is, but know that a higher cost of living in Alberta isn’t the cause. During the peak of the economic boom inflation in Alberta was around 3.5% higher, but inflation in Ontario has been substantially higher over the past few years.
One of the problems with the differences in wages in Canada is the fact that the labor market from east to west isn’t as integrated with each other as well as they should be. It is expected for people to seek out better work opportunities, preventing the build up of wage pressures in one region of Canada while at the same time benefiting that region by decreasing its unemployment rate. Maybe it’s because of the distance across our nation? Who knows?
There will always be differences between different economic regions to some extent, but the amount of increasing space between these differences is alarming because most workers fail to notice the advantage of moving from a place of low to high economic activity. Greeks are allowed to live and work in Germany, but learning the language might not be so easy. So then, what is the driving force preventing a worker living in Ontario from moving to Edmonton, Alberta?
For more interesting Canadian economics, check out 10 Reasons Why Canada’s Economic Balance is Tilting West! Thanks for stopping by and come back soon for everything to do with Calgary, Alberta, Canada and more!