Manufacturing index posts growth for first time in six months.
“I think there is much room for improvement to happen, and we see that,” said Alan Gertler, chief executive of the Greater Calgary Business Alliance.
But with job losses at a record pace and the Alberta economy slowing, the economy is expected to contract 0.2% this year, the Alberta Commerce Department said on Wednesday.
The unemployment rate fell to 4.8% from the 4.9% it hit in August. The jobless rate fell in eight provinces except Quebec.
While job growth continues to climb, unemployment is expected to stay low until 2016 at the earliest, as a combination of the low cost of living and slow economic growth will lower the average monthly wage.
Alberta’s economy still accounts for a bigger portion of Canada’s gross domestic product than any other province, partly because of the Alberta energy boom.
Total provincial exports fell 2.7%, the lowest level since February 1999.
Industry in the province is growing, but growth is slowing because of a slowing economy and a loss of oil and gas companies, Gertler said.
The Canadian Automotive Investment Association called it “very disappointing” that “Canada’s recovery is starting to show signs of slowing.”
But industry’s continued growth will help boost the economy as more of those jobs will be created on the new investment, said John Kavoussi, CIDA’s chief economist.
“A stronger Alberta economy provides a path to get this under control and bring that recovery back and to get this 세종출장안마unemployment down,” Kavoussi said.
But even with growth, there are about 300,000 fewer private sector jobs than there were in August, he said.
“We’re seeing another contraction in our economy. The economy is becoming more fragile,” he said.
Growth in manufacturing may slow somewhat, with a 2.4% growth rate, followed by growth in business services, 1.1%, as other factors take hold.
Growth in government and industry could slow.
Government employment is expected to grow 2.6% from the 6.9% rate in August, or just shy of the growth rate of 5.3% expected this year, Statistics Canada said.