SASKATOON – Economists are saying all trends are cyclical and for every boom there’s a bust.
Natural resources have fuelled Saskatoon’s economy, bringing in people from around the world and that population increase is now fuelling all other sectors, according to Mario Lefebvre with the Conference Board of Canada.
Lefebvre is in Saskatoon Thursday giving his 2014 economic forecast to the local business community at the Saskatoon Regional Economic Development Authority’s (SREDA) fall economic forum.
“100,000 people have joined this city over the past 10 to 15 years and they need hairdressers, they need cleaners, they need all sorts of services,” said Lefebvre.
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Tim Schroh, Chief Operating Officer of Affinity Credit Union, says commercial and business loans are through the roof.
It’s great news, but with more members through their doors daily, it doesn’t come without challenges.
“Attracting and retaining your quality employees,” said Schroh, “it has been tougher over the last few years.”
The Conference Board of Canada forecasts a 3.5 per cent GDP in 2012.
A number it says would and should be higher considering the city’s success, but labour supply is too short.
Provincially, 3.6 per cent of residents are unemployed.
According to the board, once the number dips below 4 per cent, it’s a problem.
“This will lead to more ferocious competition among employers,” said Lefebvre.
“Wages are going to go up, house prices are going to go up and we’re going to create inflation here making it even tougher to attract other people to come here cause the cost of living will be so much higher.”
To avoid this, the board suggests actively recruiting workers.
It’s a task for provincial and federal governments to undertake and the business community anxiously hangs in the balance.
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