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SERIES 3/3: " Maverick culture puts Alberta ahead"
Posted in June's Kelowna Real Estate Blog on January 18, 2008
Rugged individualism across the Rockies helps province's economy outperform B.C.'s
Second Place. First loser. Perennial bridesmaid. Runner-up. Put it anyway you want, B.C. finishes behind Alberta in nearly every employment-related measure you can name.
But we're prettier than Alberta. More desirable. Turgid with every gift that the Earth can bestow. What gives? Why do British Columbians continue to flock to the badlands?
Easy.
Albertans are better paid, more productive and have more disposable income than British Columbians. Lower provincial income taxes make work a more profitable venture in Alberta. Those rewards make a difference. A far greater proportion of Albertans actively participate in the workforce than here in B.C. -- 71.5 per cent compared to our 63.3 per cent. They want to work.
The difference, according to business consultant and SFU lecturer Owen Anderson, is cultural.
"It's what I call Alberta Exceptionalism," Anderson said. "There are more playwrights, musicians and artists per capita in Alberta than anywhere else in Canada . . . from Joni Mitchell to k.d. lang and a thousand others you've never heard of, the point is that Albertans aren't afraid to do their own thing," Anderson said.
That's not just an opinion. The number of people who are self-employed or running a business of their own is about 30 per cent higher in Alberta than the Canadian average. Businesses that employ fewer than 50 employees account for 95 per cent of all businesses with employees in Alberta, according to government statistics.
Academics call it "maverick culture," and it runs strong. Anderson cites the story of an oil executive who rose to great heights only to chuck it and become a sculptor. "They want to do what they want to do," he said. "No one, when you interview them, wants to seek the safety of a job at a big company.
"When you talk to Albertans about anti-business sentiment in B.C. they look at you like they don't understand what you are talking about," said Alberta-raised Anderson, who has worked for former Alberta premier Ernest Manning. "Their attitude is that each of us is a business."
That attitude is what allows them to walk away from jobs with just a stapler and a briefcase if a better offer comes along, and it keeps companies on their toes.
Bonuses to employees run into the tens of thousands of dollars, he said, "because if you don't do it someone will come and hire away your whole crew."
Communities on Vancouver Island are being affected by Alberta's pull, according to Duncan-based accountant Woody Hayes.
"A lot of young people have left the island for Alberta to find highly paid work," he said. "The fishing industry is in the tank, logging is troubled right now, especially on the north Island. In Victoria, the jobs are either in construction or the hospitality industry at minimum wage, so Alberta money looks pretty attractive to them."
The average wage in Alberta -- $23.15 -- is almost $2 higher than B.C.'s and despite its smaller population, Alberta created 86,300 new jobs in 2006 to B.C.'s 65,000.
(prepared by Randy Shore/Vancouver Sun)
B.C. GOOD, ALBERTA A LITTLE BIT BETTER
Our Prairie cousins are better than we are in nearly every employment-related statistic. BC Alberta
Unemployment rate 4.4% 3.4%
Employment rate 63.3% 71.5%
Real wage rate $21.73 $23.15
Disposable income $25,194 $32,109
Job growth rate 3.1% 4.8%
(Source: Institute of Chartered Accountants of B.C.; Statistics Canada)
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