Atlantic Canada's economic state a 'hodgepodge,' says APEC

New Atlantic Provinces Economic Council report says jobs may be down, but wages are moving up

Image | StatCan Jobs 20150807

Caption: While employment is down 0.7 per cent across the region, those with jobs are seeing a 2.8 per cent increase in wages in New Brunswick, according to a new report. (Sean Kilpatrick)

The Atlantic region's economy has been a mixed bag so far this year, producing increasing wages, but fewer jobs, according to a new report.
These economic indicators were released on Tuesday by the Atlantic Provinces Economic Council in its latest analysis of the region's economy.
"There's been some pluses and minuses," said Fred Bergman, a senior policy analyst at APEC.
Employment throughout Atlantic Canada is down 0.7 per cent.
Bergman partially attributes the decline in employment across the region to difficulties in the business services industry, which would include jobs in information technology and call centres.
The job losses have not led to a corresponding decline in wages, however.
Wages have risen in the region by one per cent in the past seven months, while in New Brunswick they have jumped by 2.8 per cent in the past five months.
Bergman said the increasing wages could be attributed to New Brunswick's aging population.
"[You see] a lot of people in their mid-40s to mid-50s range. Well that's typically when your lifetime earnings peak, i.e. you get promoted through your career, you gain skills … so your income tends to progress," said Bergman.

Impact of Syrian refugees studied

Another issue mentioned in the APEC's latest analysis is the the influx of newcomers to the province, especially Syrian refugees.
The council notes that 4,100 Syrians have arrived in the region during the first quarter of the year, 41 per cent of them settling in the province.

Image | Fred Bergman

Caption: Fred Bergman, senior policy analyst with APEC, said the region's economy has, "pluses and minuses." (APEC)

Economists have often noted that population growth is necessary for economic growth, but Bergman said it is too early to tell what impact the influx will have on the province's finances.
"I think the initial economic blip will be a bit softer than it will be longer term," said Bergman.
Another highlight to come out of the report were that the region saw increased numbers in the retail sector.
Sales increased by seven per cent, while the nation as a whole only saw a five per cent increase.
The APEC report says the increase in motor vehicle sales may have been spurred on by lower fuel costs and low interest rates.
The housing sector was a mixed bag.
While urban housing starts fell by 21 per cent in the region, the used housing market increased in all the Atlantic provinces.
The largest increase was in Prince Edward Island with a 38 per cent increase.