Household income declines in Alberta due to oil, but still among highest in Canada
Anca Dan built a successful career working administrative jobs in the oil and gas industry for more than two decades, but in recent years she has shifted her focus toward her own startup company — a lifestyle app for single parents.
After oil prices crashed in 2015 — and then swung up and down amid volatile global demand and shifting environmental regulations — Dan says technology has become a more sustainable industry than oil and gas and a better way to ensure she can leave a legacy for her two sons.
"If you're not into tech, you're kind of a dinosaur," said Dan, a single parent who moved to Canada from Romania in 1984.
"And Calgary is a good place to foster this kind of innovation."
Data released Wednesday by Statistics Canada suggests the same. It shows Calgary households lead the country in highest after-tax income despite a $5,000 decline since the last census.
The decline, also seen in Edmonton, were a result of the urban centres taking a hit from low oil prices and the COVID-19 pandemic, said a spokesperson for Statistics Canada.
"Oil prices were at record lows (in the spring of 2020) … and that tends to have far-reaching effects on the economies of the province, and not just the resource sector," said André Bernard, chief of the centre for income and socioeconomic well-being at Statistics Canada.
Despite the decline, those living in Edmonton and Calgary continue to bring home some of the highest wages in Canada, taking in over $10,000 more than the average Canadian household.
In Edmonton, the average household income people made after taxes was $84,000 in 2020, down from $87,000 in 2015. Meanwhile in Calgary, average household income after-tax was $87,000 in 2020 down from $92,000 in 2015. This is higher than Canada's median after-tax household income of $73,000.
Alberta has historically attracted mostly working-age people and young immigrant families looking for affordable living, said Jenny Godley, associate professor in the department of sociology at the University of Calgary.
She said while places like Alberta's oil boomtown, Fort McMurray, still offer people lucrative opportunities through natural resources, the economy across the Prairies has become more diversified over recent years.
People are reconsidering how they want to spend the next 20 years of their career, and for some, like Dan, that means leaving the oil and gas industry behind — even as oil prices surge once again — in exchange for more stability.
"Something that's happening is that a lot of jobs are opening up in other sectors," Godley said.
"We hear almost every week about a new company setting up that's in the tech sector, and clean energy as well. There's a lot of appetite now for branching out from the oil and gas industry."
Higher wages and diverse industries are what drew 33-year-old Michael Malinowski to Calgary, where he works as a geotechnical engineer, from a small town in southeastern Saskatchewan.
"There's more of that dog-eat-dog mentality (in Alberta). I feel like here everybody is chasing that extra dollar or two per hour," Malinowski said.
Like Dan, who wants to leave something for her children, Malinowski said his priority is building for his future. Whether that's in Calgary or back in Saskatchewan, Malinowski said it will depend on which economy best supports his plan to live affordably.
"In Alberta, taxes are cheaper and income is higher. That's potential to save more money."
This report by The Canadian Press was first published July 13, 2022.
CTVNews.ca Top Stories
Canadian Olympic Committee CEO says soccer coach Bev Priestman likely aware of spying
Canadian Olympic Committee chief executive officer David Shoemaker says the head coach of the national women's soccer team was likely aware drones were used to spy on another team's practices in France.
Arson attacks paralyze French high-speed rail network hours before start of Olympics
France's high-speed rail network was hit Friday with widespread and "criminal" acts of vandalism including arson attacks, paralyzing travel to Paris from across the rest of France and Europe only hours before the grand opening ceremony of the Olympics.
DEVELOPING Recent rain, cooler weather limiting spread of wildfires in Jasper National Park
Cool and wet weather is making a difference in Jasper National Park.
Canada to bring home fewest Olympic medals since 2012, according to forecaster
Fewer Canadians are expected to reach the Paris podium than in the previous two Olympic Summer Games, a global data analytics company predicts.
Harris pushes Netanyahu to ease suffering in Gaza: 'I will not be silent'
U.S. Vice President Kamala Harris pressured Israeli Prime Minister Benjamin Netanyahu on Thursday to help reach a Gaza ceasefire deal that would ease the suffering of Palestinian civilians, striking a tougher tone than President Joe Biden.
Stay inside, filter indoor air amid wildfire smoke, respirologist says
A Calgary respirologist is advising people to regularly check the outdoor air quality and stay inside as smoke from the Jasper wildfires blows into other parts of Alberta and possibly beyond.
Mary-Ellen Turpel-Lafond likely has Indigenous DNA: report
The Law Society of British Columbia says a DNA test shows a former judge and Order of Canada recipient accused of falsely claiming to be Cree "most likely" has Indigenous heritage.
Yukon woman narrowly escapes bear attack, credits hair clip
A woman in Yukon believes her hair clip helped save her during a bear attack.
OPINION Prince Harry: Press intrusion and the family rift explored in new doc
Prince Harry, the Duke of Sussex, has once again found himself at the centre of media attention following his recent interview as part of 'Tabloids on Trial,' an ITV documentary on phone hacking and tabloid intrusion.