Alberta, Alaska face off for workers By end of next decade province projected to be 109,000 workers short; Alaska projects will need 41,000 workers in next 10 years Amy Spittler Petroleum News
Bill Popp, president and CEO of the Anchorage Economic Development Corp., spoke before the Resource Development council Jan. 3, and urged local business people to take a proactive approach to workforce development in Alaska.
Popp pointed out that projects slated for the next decade will need to fill 41,000 full-time positions, 21,000 of them during 2014 and 2015 alone.
“Global demands, an aging workforce and the growing need for skilled employees should have employers nervous,” Popp said, “and one of our biggest competitors right now is Alberta.”
Currently ranked second in the world, with more than 170 billion barrels in established oil reserves, Alberta falls in right behind Saudi Arabia and far surpasses the United States’ 21 billion barrels.
As Canada’s fastest growing province Alberta’s population reached 3.3 million in 2006. Its gross domestic product expanded 6.8 percent, and with an estimated total investment of $66 billion, it ranks the highest in the country.
During a recent trip to Edmonton, Popp said every other radio ad was from a recruitment service. McDonalds employees in the Alberta city were earning $12 an hour; and a two-bedroom, 1,200-square-foot, zero-lot-line home had just topped $600,000.
Competitive pressure from Alberta Provincial workforce projections through the first quarter of 2010 for industrial construction projects alone will require 36,000 workers, he said.
“We’re facing some pretty phenomenal competitive pressure from Alberta. They’re chasing all the same skill sets we’re chasing for the projects we’re about to embark on in the next decade,” explained Popp, “This includes oil, gas and mining because of the similar nature of our natural resources.”
During a Pacific Northwest economic conference in August 2007 an Alberta government official gave a workforce development presentation claiming that by the end of the next decade the province would be 109,000 workers short in its broader economy.
“We also have to consider the Gulf of Mexico and our own Western states, in addition to Alberta and British Columbia when it comes to workforce competition,” Popp said.
And if that wasn’t enough, he said the current strength of the Canadian dollar could entice Alaska companies to take a hard look at Alberta and British Columbia as areas for new operations. “It’s now a level playing field, if not in some cases a premium playing field for companies to work in these regions.”
How to compete How does Popp suggest we compete?
One program already in place is the Putting Alaska’s Resources to Work coalition, in which Popp is involved. “It’s a third-party confidential aggregator of industry workforce future strategic planning and needs,” he explained, and its members include those in industry, government and training programs.
For starters, PARW has done its own projection through 2014 for priority occupations and categorized different fields based on whether there’s a shortage, a concern or availability. All jobs have been broken down to provide information for someone looking to enter that field, including a description, the education or training needed, and base salary.
The preliminary work done on the projection includes priority occupations, or those with shortages. The full version will be unveiled and made available to the public at PARW’s annual conference being held March 3 at the BP Energy Center.
Making the necessary information available to employers and job seekers is the first step, Popp said, asking business people to contact PARW and get more involved.
For more information on PARW visit www.parw.info.
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