The Brain Drain: Are Skilled Workers Leaving Alberta?
Alberta is losing its skilled workers.
1/4/202510 min read
The Brain Drain: Are Skilled Workers Leaving Alberta?
Alberta, Canada's energy powerhouse, has long been a magnet for skilled workers seeking opportunity and prosperity. However, recent trends suggest a potential shift in this dynamic. This report delves into the factors contributing to skilled worker migration out of Alberta and explores the potential consequences for the province's economy and competitiveness.
Skilled Worker Migration in Alberta
While Alberta has historically been a net beneficiary of skilled worker migration, recent data suggests a potential shift in this trend. Statistics Canada reports indicate that between 2010 and 2017, Alberta experienced a net gain of young skilled workers, representing 22% of its initial population of young skilled individuals 1. This data encompasses a period of economic fluctuation, including the downturn in 2014-2016, highlighting the potential influence of economic factors on migration patterns. More recent data from the first quarter of 2024 shows that Alberta's population grew by 4.41% 2. This growth is fueled by interprovincial and international migration, including the arrival of skilled workers. However, it's crucial to examine the net migration of skilled workers specifically to understand the full picture.
Adding to this, changes in the population structure of Alberta between 2011 and 2021 provide valuable context. The proportion of children increased by 5.3%, while the proportion of working-age adults decreased by 5.6% 3. This demographic shift underscores the importance of attracting and retaining skilled workers to maintain a sustainable workforce.
Furthermore, interprovincial migration plays a vital role in Alberta's labor market. It is expected to be the primary source of labor force entrants between 2023 and 2025 and will continue to be a major contributor to job seeker growth thereafter 4. This highlights the need to understand the factors that influence interprovincial migration patterns, including the movement of skilled workers.
While Alberta has benefited from the influx of young skilled workers, a key insight emerges from analyzing the data. The province also faces the challenge of retaining these workers as they gain experience and potentially seek opportunities elsewhere 1. This emphasizes the need for policies and initiatives that not only attract skilled workers but also provide incentives for them to stay in Alberta long-term.
Factors Contributing to Skilled Worker Migration
Several factors contribute to skilled worker migration out of Alberta:
Economic Factors: Fluctuations in the energy sector, Alberta's economic mainstay, can significantly impact job security and wages. The energy sector's volatility can create uncertainty and potentially drive skilled workers to seek more stable opportunities in other provinces or countries with more diversified economies 5. For example, the downturn in oil prices in 2014-2016 led to significant job losses in Alberta, prompting some skilled workers to relocate.
Cost of Living: The rising cost of living, particularly housing costs in major cities like Calgary and Edmonton, can make it challenging for skilled workers to maintain a desirable quality of life 6. High housing costs can strain household budgets and reduce disposable income, making it less attractive for skilled workers to live and work in Alberta, especially when compared to other provinces with lower living costs.
Career Advancement: Skilled workers may seek opportunities for career growth and development in other provinces or countries with different industry focuses or more diverse economies 7. Alberta's economy, while strong, is heavily reliant on the energy sector. This can limit career options for skilled workers in other fields, leading them to seek opportunities elsewhere to advance their careers and explore different industries.
Government Policies: Changes in government policies, such as those related to immigration or the Temporary Foreign Worker Program, can influence the attractiveness of Alberta as a destination for skilled workers 8. For instance, changes to the Alberta Advantage Immigration Program (AAIP) can affect the eligibility criteria and application process for skilled workers seeking to immigrate to Alberta.
Healthcare and Social Services: Concerns about healthcare access and wait times, as well as the availability of social services, can influence skilled workers' decisions to stay or leave 7. Access to quality healthcare and social services is an important consideration for skilled workers, especially those with families. If these services are perceived as inadequate or difficult to access, it can be a factor in their decision to migrate.
Potential Consequences for Alberta's Economy
The migration of skilled workers from Alberta can have significant consequences for the province's economy:
Labor Shortages: A shortage of skilled workers can hinder economic growth and limit the ability of businesses to expand and innovate 9. This can lead to delays in projects, reduced productivity, and a decline in overall economic output. For example, a shortage of skilled tradespeople in the construction industry can slow down infrastructure development and hinder the growth of the housing sector.
Loss of Human Capital: The departure of skilled workers represents a loss of valuable knowledge, expertise, and experience that can negatively impact productivity and competitiveness 1. This loss of human capital can make it difficult for businesses to innovate and compete in a global market.
Reduced Innovation: A decline in skilled workers can stifle innovation and limit the development of new technologies and industries 1. Innovation is crucial for economic growth and diversification. A lack of skilled workers, especially in emerging fields like technology and renewable energy, can hinder Alberta's ability to adapt to changing economic conditions and develop new industries.
Economic and Social Costs: Persistent long-term unemployment resulting from labor shortages can lead to social issues like poverty, crime, and decreased overall well-being 10. This can create a strain on social services and increase government spending on social assistance programs. Moreover, the loss of skilled workers can result in reduced tax revenue for the government, further impacting public services and infrastructure development 11.
Digital Skills Gap: A lack of digitally skilled talent is a major threat to Alberta's digital economy 12. As the economy becomes increasingly reliant on technology, a shortage of workers with digital skills can hinder the growth of the tech sector and limit the adoption of new technologies across various industries.
By synthesizing the information from various sources, a crucial insight emerges: the economic and social costs of skilled worker migration extend beyond labor shortages and include reduced tax revenue, decreased productivity, and potential increases in social issues 10. This emphasizes the need for a comprehensive approach to address skilled worker migration, considering both the economic and social implications.
Initiatives to Retain Skilled Workers
Recognizing the importance of retaining skilled workers, Alberta has implemented various initiatives:
Alberta 2030: This initiative aims to transform the adult learning system to provide high-quality education, skills, and training to meet future workforce needs 13. By investing in education and training, Alberta aims to equip its workforce with the skills needed to succeed in a changing economy and attract skilled workers to the province.
Workforce Partnership Grants: These grants support organizations in developing strategies to attract and retain workers through partnerships 14. By fostering collaboration between employers, industry associations, and educational institutions, these grants aim to create a more coordinated approach to workforce development and address skills gaps in the labor market.
Apprenticeship Programs: Alberta offers various apprenticeship programs and financial incentives to encourage skill development in trades 15. These programs provide opportunities for individuals to gain practical skills and experience in high-demand trades, addressing labor shortages in sectors like construction and manufacturing.
Targeted Immigration Programs: The Alberta Advantage Immigration Program (AAIP) aims to attract and retain skilled workers in high-demand sectors 16. The program has undergone recent changes, including the addition of 16 new eligible occupations and updates to reflect the National Occupational Classification (NOC) 2021 17. These changes aim to make the program more responsive to the evolving needs of Alberta's labor market.
Initiative
Description
Target Group
Alberta 2030
Transforms the adult learning system to provide high-quality education, skills, and training.
Adults seeking to upskill or reskill for in-demand jobs.
Workforce Partnership Grants
Funds organizations to develop strategies to attract and retain workers through partnerships.
Employers, industry associations, regional organizations, and Indigenous organizations.
Apprenticeship Programs
Offers various programs and financial incentives to encourage skill development in trades.
Individuals seeking to enter or upskill in skilled trades.
Alberta Advantage Immigration Program (AAIP)
Aims to attract and retain skilled workers in high-demand sectors.
Skilled workers seeking to immigrate to Alberta.
Combining the information from snippets 13 and 18 highlights a key insight: Alberta is actively investing in education and training programs to address skills gaps and improve workforce development, which can contribute to retaining skilled workers. This proactive approach to skills development can enhance the attractiveness of Alberta as a destination for skilled workers and encourage those already in the province to stay and contribute to its economy.
Industries and Demographics Affected
The industries most affected by skilled worker migration in Alberta include:
Industry
Description
Demographics of Migrating Workers
Healthcare
A significant shortage of nurses and other healthcare professionals is a major concern, impacting the quality of healthcare services and increasing wait times.
Younger workers (under 35) are more likely to leave the nursing profession 19.
Skilled Trades
The construction, manufacturing, and energy sectors face shortages of skilled tradespeople such as welders, electricians, and mechanics, potentially delaying projects and hindering economic growth.
Technology
The growing tech sector in Alberta requires skilled workers in areas like software development and data analysis, but competition from other provinces and countries can lead to talent outflows.
While specific data on the demographics of skilled workers leaving Alberta is limited, available information suggests that younger workers (under 35) and those with post-secondary education are more likely to migrate 1. This highlights the need to focus on retaining younger talent and creating career pathways that encourage skilled workers to stay in Alberta.
In addition to labor shortages in certain sectors, it's important to consider the anticipated labor surpluses in other occupations. Labor surpluses are expected in sales and service occupations, such as middle management in retail and wholesale trade, customer service, and office support 4. This information provides a balanced perspective on the labor market dynamics in Alberta.
Comparison with Other Provinces
Several provinces in Canada face similar challenges with skilled worker migration. Ontario, for example, has experienced a net outflow of people to other provinces, including Alberta, in recent years 20. This trend is partly attributed to the high cost of housing in Ontario, which can make it more expensive for skilled workers to live and work there. Quebec has also faced a long-standing issue of out-migration, with residents moving to other provinces and the US 21. Factors contributing to this trend include economic conditions, language policies, and cultural factors.
A key insight emerges from comparing Alberta's situation with other provinces: the issue of skilled worker migration is not unique to Alberta, and other provinces face similar challenges with different contributing factors 20. This highlights the need for a national approach to address skilled worker mobility, considering the unique circumstances of each province and fostering collaboration to attract and retain talent across Canada.
Furthermore, it's important to consider the broader context of skilled worker mobility. The concept of "brain chain" suggests that Canada should treat its expatriate citizens as national assets 22. This perspective recognizes that skilled workers who leave Canada may still contribute to the country's economy and knowledge base through international collaborations, investments, and the potential for returning with enhanced skills and experience.
Conclusion
The issue of skilled worker migration in Alberta is complex and multifaceted. While the province has historically attracted skilled workers, recent trends suggest a potential shift in this dynamic. Economic fluctuations, cost of living, career advancement opportunities, and government policies all play a role in influencing skilled workers' decisions to stay or leave. The potential consequences of this migration for Alberta's economy are significant, including labor shortages, loss of human capital, reduced innovation, and potential increases in social issues.
To mitigate these consequences, Alberta needs to continue investing in initiatives that attract and retain skilled workers, such as targeted immigration programs, skills development programs, and policies that address the rising cost of living. By creating an environment that supports skilled workers and provides opportunities for career growth and prosperity, Alberta can ensure its continued economic competitiveness and long-term prosperity.
However, addressing skilled worker migration requires a nuanced approach that considers the challenges and opportunities facing Alberta. Attracting skilled workers from other provinces or countries may be necessary to fill immediate labor needs, but it's equally important to retain existing skilled workers and prevent a "brain drain." This requires a balance between attracting new talent and investing in the development and retention of the existing workforce.
Government policies play a crucial role in shaping migration patterns. Policies related to immigration, education, healthcare, and the economy can all influence the attractiveness of Alberta as a destination for skilled workers. Therefore, it's essential for the government to consider the potential impact of its policies on skilled worker migration and implement measures that support both attraction and retention.
Finally, the issue of skilled worker migration has long-term implications for Alberta's economic diversification efforts. To reduce its reliance on the energy sector and develop a more diverse economy, Alberta needs to attract and retain skilled workers in a variety of fields, including technology, healthcare, and renewable energy. This requires a long-term strategy that focuses on skills development, innovation, and creating an environment that supports a diverse and skilled workforce.
Works cited
1. Retention and recruitment of young skilled workers: Results by province and territory - Statistique Canada, accessed January 4, 2025, https://www150.statcan.gc.ca/n1/pub/36-28-0001/2024004/article/00003-eng.htm
2. Immigration Fuels Alberta's Record-Breaking Population Growth - ImmigCanada, accessed January 4, 2025, https://immigcanada.com/immigration-fuels-albertas-record-breaking-population-growth/
3. Economic profile: Edmonton (CMA), Alberta - Canada.ca, accessed January 4, 2025, https://www.canada.ca/en/immigration-refugees-citizenship/campaigns/immigration-matters/local-economies/edmonton.html
4. Alberta's occupational outlook highlights, 2023-2033 - Open Government program, accessed January 4, 2025, https://open.alberta.ca/dataset/8987e228-9ffa-4a2e-9f79-a9b869df2ccb/resource/96e060ae-1a52-4685-884d-fc9c301c327c/download/jet-albertas-occupational-outlook-highlights-2023-2033.pdf
5. Alberta is Calling, again — province wants more skilled workers to close labour gap - Reddit, accessed January 4, 2025, https://www.reddit.com/r/alberta/comments/1b3wtvo/alberta_is_calling_again_province_wants_more/
6. Why are new skilled workers leaving Canada soon?, accessed January 4, 2025, https://getincanada.ca/blog/why-are-new-skilled-workers-leaving-canada-soon/
7. Reasons New Skilled Immigrants Are Leaving Canada Within Few Years, accessed January 4, 2025, https://immigrationnewscanada.ca/canada-immigration-why-immigrants-leave/
8. Alberta government cancels foreign worker recruitment trip to United Arab Emirates | Globalnews.ca, accessed January 4, 2025, https://globalnews.ca/news/10908854/alberta-government-united-arab-emirates-workers/
9. Impact of the Temporary Foreign Worker (TFW) Program on the Labour Market in Alberta, accessed January 4, 2025, https://open.alberta.ca/dataset/30ca4d56-943c-4a02-9676-50d8355870c9/resource/65f48771-27fe-49d2-805a-b5a07ca8af76/download/6459032-2011-impact-of-the-temporary-foreign-worker.pdf
10. Silent Crisis: Trends and Challenges Facing Alberta's Displaced Workers, accessed January 4, 2025, https://www.businesscouncilab.com/wp-content/uploads/2021/09/BCA_Silent-Crisis-Trends-and-Challenges-Facing-Albertas-Workers-FINAL.pdf
11. The Brain Drain: The Loss of Canada's Brightest Minds to the United States - Economics - Western University, accessed January 4, 2025, https://economics.uwo.ca/undergraduate/wuer/2003/1_Uhm.pdf
12. A Resilient Recovery - ICTC, accessed January 4, 2025, https://ictc-ctic.ca/reports/a-resilient-recovery
13. Alberta 2030: Building Skills for Jobs, accessed January 4, 2025, https://www.alberta.ca/alberta-2030-building-skills-for-jobs
14. Workforce Partnerships grants | Alberta.ca, accessed January 4, 2025, https://www.alberta.ca/workforce-partnerships-grants
15. Government of Alberta: Grant And Funding August 2024 - Diverse Workforce, accessed January 4, 2025, https://diverseworkforce.ciwa-online.com/pages/government-of-alberta-grant-and-funding-august-2024
16. Alberta Advantage Immigration Program (Formerly known as the AINP) - Canadavisa.com, accessed January 4, 2025, https://www.canadavisa.com/alberta-provincial-nominee-program.html
17. Alberta Advantage Immigration Program – Updates, accessed January 4, 2025, https://www.alberta.ca/aaip-updates
18. Government of Canada invests to help Albertans improve their skills and find jobs in today's labour market, accessed January 4, 2025, https://www.canada.ca/en/employment-social-development/news/2023/11/government-of-canada-invests-to-help-albertans-improve-their-skills-and-find-jobs-in-todays-labour-market.html
19. 48% of new Alberta nurses leave profession before they turn 35: report | Globalnews.ca, accessed January 4, 2025, https://globalnews.ca/news/10771891/alberta-nurses-leave-profession-report/
20. Ontario facing housing-inflicted 'brain drain' to other provinces: report - The Trillium, accessed January 4, 2025, https://www.thetrillium.ca/municipalities-newsletter/ontario-facing-housing-inflicted-brain-drain-to-other-provinces-report-9843031
21. CANADA'S OTHER BRAIN DRAIN: THE CONTINUING EXODUS FROM QUEBEC, accessed January 4, 2025, http://irpp.org/wp-content/uploads/sites/2/assets/po/the-flat-tax/stevenso.pdf
22. Shaping Alberta's Future - Open Government program, accessed January 4, 2025, https://open.alberta.ca/dataset/97104aa2-b2e3-41d9-9b67-2ce04b1d2c48/resource/3a0bdd25-0b6a-45fc-9b50-4457dfecd158/download/shapingabfuturereport.pdf