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
Infant dies in ATV crash, N.S. RCMP says alcohol may be a factor
An infant has died and three others, including another child, were taken to hospital following an ATV crash in Forties, N.S., on Monday.
Canadians are eyeing moves to these cities for more affordable housing
Faced with elevated housing prices, half of Canadians in the country's largest cities are considering moving to places with more affordable housing.
Charges against world's top golfer Scottie Scheffler dropped after arrest outside PGA Championship
Criminal charges against Scottie Scheffler have been dismissed, ending a legal saga that began with images of the world’s top male golfer being arrested and handcuffed in Louisville during the PGA Championship.
'Do not drive': Nissan warns Canadian drivers of explosion risk impacting 48,000 vehicles
Car manufacturer Nissan has issued a do-not-drive warning for some older vehicles equipped with Takata airbag inflators, due to the risk of explosion during a crash.
'Scandals and secrets': On board the world's most exclusive private residential ship
It’s a floating city exclusively home to the 1 per cent, a playground for multimillionaires and billionaires that circumnavigates the world's oceans.
Tessa Virtue reveals she's expecting her first child. Here's what Canadians had to say
Canadian figure-skating icon Tessa Virtue is expecting her first child, she revealed via social media Tuesday.
How Trump's hush money trial verdict could affect the 2024 election
Here is how three potential outcomes from the jury room ─ a guilty verdict, an acquittal or a hung jury ─ could affect the presidential campaign.
'Are you driving?' U.S. man with suspended licence shows up on court Zoom call while behind the wheel
A Michigan man with a suspended driver's licence didn't appear to have thought through a recent court appearance made on video, joining the Zoom call while driving.
An Iceland volcano starts erupting again, spewing lava into the sky
A volcano in southwestern Iceland erupted Wednesday for the fifth time since December, spewing red streams of lava in the latest display of nature’s power and triggering the evacuation of the popular Blue Lagoon geothermal spa.