The Brief: Alberta's mid-summer 2024 Economic Snapshot

Jul 23, 2024

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Join us as we explore the intricate economic landscape of Alberta in mid-summer, where high inflation and interest rates contrast with robust economic growth. Alongside our chief economist, Mike Holden, we unpack the paradox of a thriving economy and rising unemployment rates in major cities like Calgary and Edmonton. Despite the high business optimism and strong private sector job growth, the rapid influx of newcomers is outpacing job creation, presenting unique challenges for the province.

We also examine the financial struggles facing Albertans amidst rising living costs. Inflation may be slowing, but the cost of rent has surged nearly 16% over the past year, leaving many feeling financially insecure. Shifts in consumer spending patterns reveal a decline in discretionary spending and an uptick in essential purchases driven by population growth. Our discussion highlights nuanced retail trends, such as increased sales at gas stations and hardware stores, despite a drop in per-person spending.

Looking ahead, we delve into Alberta's economic future, discussing projections that consider inflation, interest rates, and population growth. The potential benefits of decreasing inflation and interest rates could provide relief, particularly for homeowners. We highlight the positive impacts of the U.S. economy on Alberta and the importance of accommodating significant population growth through infrastructure investment. Finally, we explore the critical issue of unemployment rates, emphasizing the need for job creation to match the rapid population influx, ensuring newcomers can contribute positively to Alberta's prosperity.

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About the Business Council of Alberta

The Business Council of Alberta was founded on a simple idea: to make life better for all Albertans. We believe that business has an important role in improving society, and that when business does well, we all do well. We work with the chief executives and leading entrepreneurs of Alberta’s largest enterprises to understand the big, long-term challenges that Albertans are facing and work with industry, government, and civil society to solve these problems and build shared prosperity for every person who calls Alberta home.

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