Here’s an interesting question to consider. It’s been on our minds at ATB Economics for a long time.

How does Alberta maintain and even improve on its labour productivity advantage and continue to diversify? In other words, what does productive diversification look like?

That’s the focus of a new report by ATB economics. Check it out here.

Our report offers an in-depth analysis of industry-level data, revealing Alberta’s unique productivity dynamics. It finds that:

• Alberta’s labour productivity remains the highest among provinces. Most of this advantage is driven by a higher concentration of workers in more productive industries, namely in the energy sector. 
• However, growth has slowed significantly over the past ten years, and the gap with the rest of the country has narrowed, coinciding with a large drop in energy investment. 
• At the same time, the economy continues to show more signs of diversification, with growth in emerging areas.

The report poses a critical question for Alberta: What are its unique strengths now and in the future, and how can the province continue to build on them?

New and emerging growth sectors offer future opportunities for workers. At the same time, our findings suggest that leveraging its strength in energy has been an important driver of Alberta’s productivity advantage in the past and will remain an important determinant in the future.

Why have we written this report? Canada is in the midst of a productivity emergency, with negative implications for Canadian living standards. Less talked about are the provinces, including the trends in Alberta. Our report highlights the importance of talking about productivity and diversification together, not as separate topics.

Our goal is to help frame the conversation, not answer all these questions. What do you think?  What does productive diversification look like to you?

Write us at thetwentyfourseven@atb.com.

We have a new landing spot for our special reports, including our May report called “Chasing Affordability.”

Answer to the previous trivia question: Seven provinces joined Confederation before 1900 with Alberta and Saskatchewan joining in 1905 and Newfoundland and Labrador joining in 1949.

Today’s trivia question: How many provincial capitals are also the largest city in their province?