Labour shortages loom large for Alberta

As baby boomers retire in increasing numbers and mining companies pour billions of dollars into energy projects, Canada’s energy industry is grappling with ongoing labour shortages in its oil & gas sector.

Alberta's government has predicted a shortage of 77,000 skilled workers within the next 10 years, largely driven by the rapid expansion of the province's oilsands. Bitumen production alone is expected to double by 2020. 

Skill shortages in the oil & gas sector have also been highlighted by a recent Ernst & Young survey, which canvassed human resource managers of oil and gas firms. Results revealed availability of labour as the top concern of oil & gas businesses in Alberta, along with the attraction and retention of skilled workers.

Lance Mortlock, a senior manager with Ernst & Young's oil and gas practice, said several factors were driving the labour shortages, including an aging workforce – the province estimates about 19,000 people a year retire in Alberta – the growth of large-scale projects and a worldwide demand for skilled labour.

The survey  revealed skill shortages across the oil & gas sector, including:

David Collyer, the president of the Canadian Association of Petroleum Producers, has been pushing Ottawa to reform immigration policy, saying the government needed to put “more focus on people who have the kinds of skills to advance the interest of the Canadian economy.”

Immigration Minister Jason Kenney has been working with employer groups and unions to speed the entry of temporary foreign workers, and this year is increasing the number of visas for skilled workers to 57,000, up from 47,000 last year. Canada is also preparing to welcome a record number of people under the Provincial Nominee Program in 2012.

Meanwhile, Darrell Winwood, spokesman for Alberta Human Services, said the labour shortages have the potential to slow Alberta’s economic growth.

Alberta government's latest occupational demand and supply outlook has predicted that 606,000 new jobs will be created by 2021, with 492,000 new workers joining the labour force to fill them. Shortages are expected in the trades, healthcare, financial services, retail, hospitality and tourism industries.

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