#1Highlights of the Alberta Economy 2017 Alberta Economic Development and Trade TH HO Alberta Government#2Table of Contents Economic Highlights Doing Business in Alberta - - Competitiveness Entrepreneurship - Growth - Economic prosperity - Attractive Investment Climate - Research and Development - Exports - A Diversified and Resource- based Economy - - Energy Agriculture Manufacturing Advanced Technology Broadband Usage - - Financial Services Tourism - - - Government Competitive Corporate Taxes Provincial and State Corporate Taxes Educated Work Force Alberta Government#3Table of Contents Working in Alberta Online Resources - Strong Labour Market - - - Low Personal Taxes Family Income Standard of Living Living in Alberta - People - Education - Quality Education - - ― Health Care Arts and Culture Donations and Volunteerism Alberta Government#4Alberta: The Best Place to Live, Work and Do Business USA • High Level Fort McMurray. Peace River CANADA Grande Prairie Cold Lake MEXICO ALBERTA Edmonton O • Jasper Lloydminster Red Deer Banff •Calgary Medicine Hat Lethbridge Alberta Government#5Alberta: The Best Place to Live, Work and Do Business ☐ ◉ ☐ ☐ Alberta's borders touch the Canadian Rocky Mountains to the west, the vast prairies to the east, the United States to the south and the Canadian arctic to the north. On average, the province's 4.3 million people are the youngest of all Canadian provinces, with a median age of 36.3 years. 68.7 per cent of the Alberta's labour force aged 25 years and older is holding a post-secondary degree, diploma or certificate. Even though Alberta's economy was in recession in 2016, Alberta still led the nation in economic growth during the past 20 years. Alberta's international airports in Edmonton and Calgary provide excellent air service to both domestic and international destinations. To promote its presence in key markets, Alberta operates 12 international trade and investment offices, including nine in Alberta's second-largest market, Asia. Alberta Government#6Economic Highlights Did You Know? ☐ In 2016, per capita investment in Alberta was $14,606, more than twice the national average of $6,579. Alberta's oil sands account for about eight per cent of Canada's overall Green House Gases emissions and Canada is responsible for 1.6 per cent of global emissions. Although the oil and gas sector remains Alberta's largest industry, accounting for 16 per cent of its GDP, the province's GDP shares of other sectors, such as construction, real estate, finance and insurance, and business and commercial services grew significantly between 1986 and 2016. In 2016, Alberta's population grew by 73,200 or 1.8 per cent - the highest provincial rate of increase. Alberta Government#7Economic Highlights Growth ☐ In 2016, almost 2.3 million Albertans were employed, international merchandise exports were $79 billion, and investment totaled $62 billion. Between 2006 and 2016, Alberta accounted for 22 per cent of Canada's population growth. In fact, Alberta's population increase of 24 per cent over that period was the largest increase of any province or state in North America. The Alberta economy contracted by 3.8 per cent in 2016, as a result of the recent oil and gas price declines which have led to sharply lower capital investment by oil and gas companies. Alberta's economy has started to grow again and all private sector forecasters are expecting Alberta's economy to be one of the top two provinces in economic growth in 2017. Alberta Government#8Economic Highlights Growth Growth In Selected Indicators: 2006 - 2016 Per Cent Change Population Employment GDP Merchandise Exports 1.4 Investment 8.8 11.4 10.3 14.0 16.5 16.3 18.4 20.8 Source: Statistics Canada and Alberta Economic Development and Trade 24.3 ■ Alberta ■Canada Alberta Government#9Economic Highlights Economic Prosperity ☐ ☐ Alberta's diverse economy provides the broad-based growth that is crucial to sustaining stable, long-term economic growth. The oil and gas and mining sector accounts for 16.4 per cent of the province's Gross Domestic Product (GDP), compared with 23.2 per cent in 1986. Other sectors have shown considerable growth over the past three decades. From 1986 to 2016 the following non-energy sectors grew strongly: • • Construction sector from a 7.0 per cent share of GDP in 1986 to 10.1 per cent in 2016; The finance and insurance and real estate sectors from 13.5 per cent to 16.5 per cent; and Business and commercial services sector from 6.6 per cent to 11.8 per cent. Alberta Government#10Economic Highlights Economic Prosperity Economic Diversity: 1986 Percentage Distribution of GDP Total GDP: $59.6 Billion* Agriculture & Forestry Construction 7.0% 4.6% Oil & Gas & Mining 23.2% Health Care 4.5% Education 4.5% Public Administration 5.8% Retail & Wholesale 9.7% Tourism & Consumer Services 4.6% Economic Diversity: 2016 Percentage Distribution of GDP Total GDP: $309.1 Billion* Agriculture & Forestry 1.8% Health Care 6.3% Construction 10.1% Education 4.1% Finance & Insurance 4.8% Manufacturing 6.9% Transportation & Utilities 9.2% Finance, Insurance & Business & Commercial Services 6.6% Real Estate✶✶ 13.5% Public Administration 5.4% Retail & Wholesale 9.5% Tourism & Consumer Services 5.1% Real Estate 11.7% * Current dollar GDP at market prices ** No further breakdown of the Finance & Insurance & Real Estate sectors is available for 1986 Sources: Statistics Canada, Alberta Treasury Board and Finance and Alberta Economic Development and Trade Oil & Gas & Mining 16.4% Manufacturing 6.7% Transportation & Utilities 6.6% Business & Commercial Services 11.8% Alberta Government#11Economic Highlights Attractive Investment Climate ☐ ☐ ☐ Alberta has the second highest per capita investment among the provinces, just behind Newfoundland and Labrador. In 2016, per capita investment in Alberta was $14,606, more than twice the national average of $6,579. Non-residential investment declined by 18 per cent in 2016 to $62 billion because of falling oil and gas investment, which resulted from a sharp decline in oil and gas prices. Oil and gas investment is expected to grow by about 2 per cent in 2017 because of rising investment in conventional oil and gas projects. Investment is expected to recover and be one of the major drivers of Alberta's economic growth over the long term, driven by investment in oil sands development, manufacturing, infrastructure and business services. The Government of Alberta's $34.8-billion infrastructure program in the Jobs Plan is helping stimulate the economy, keep people working and address the province's infrastructure deficit. Alberta Government#12Economic Highlights Attractive Investment Climate Per Capita Investment* (2016) Newfoundland & Labrador Alberta Saskatchewan Manitoba Canada $19,165 $14,606 $12,216 $7,748 $6,579 British Columbia $5,812 Ontario $4,860 Quebec $4,392 New Brunswick $4,353 Nova Scotia $4,067 Prince Edward Island $3,894 * Investment in new housing is not included in these estimates Sources: Statistics Canada and Alberta Economic Development and Trade Alberta Government#13Economic Highlights Exports ☐ ☐ In 2016, Alberta exported $78.8 billion worth of goods to 187 countries, a decrease of 15 per cent from 2015. Alberta's drop in exports in 2016 can be attributed mostly to much lower prices for crude oil and natural gas. Alberta also exports an increasing amount and variety of manufactured products such as petrochemicals, food products, and metals and machinery. Although manufacturing exports have declined during the recent recession to $21.6 billion in 2016, they are still 6 per cent higher than they were in 2006. Exports of crops and livestock rose 64 per cent between 2006 and 2016, while processed food exports increased by 80 per cent. Alberta Government#14Economic Highlights Exports Alberta's Major Exports 2016 Total Merchandise Exports - $78.8 Billion* Crude Petroleum Petrochemicals 7.9 Gas and Gas Liquids 7.4 Crops & Livestock 5.1 Processed Food & Beverages 4.7 Forestry Products 2.9 Metals & Machinery 2.8 Refined Petroleum Products 1.2 $ Billions Electronic & Electrical Products 0.7 Transportation Equipment 0.7 Others 2.2 43.2 * Exports of services are not included in this estimate Sources: Statistics Canada and Alberta Economic Development and Trade Alberta Government#15A Diversified and Resource-based Economy Energy ☐ ☐ ☐ In 2016, Alberta produced about 80 per cent of Canada's crude oil and 67 per cent of its natural gas. Alberta has the third largest petroleum reserves in the world, after Venezuela and Saudi Arabia. The Alberta Energy Regulator forecasts that production of upgraded and non-upgraded bitumen from oil sands will increase by 60 per cent to 3.8 million barrels per day by 2025, up from 2.4 million barrels per day in 2015. In 2016, gross revenues from all hydrocarbons were $56.8 billion, with revenues of synthetic crude oil and bitumen from the oil sands accounting for 63.5 per cent of the total. In 2016, energy resource exports totaled $51 billion, accounting for almost two-thirds of Alberta's total commodity exports that year. Alberta Government#16A Diversified and Resource-based Economy Energy Alberta's Energy Revenues 2016 Total: $56.8 Billion Alberta's Energy Exports 2016 Total: $51.0 Billion Natural Gas & Gas Liquids 21.8% Coal and Sulpur 1.4% Conventional Crude Oil 13.3% Natural Gas & Gas Liquids 14.5% Oil Sands 63.5% Coal and Sulphur 0.8% Sources: Statistics Canada, Alberta Energy Regulator, Alberta Economic Development and Trade Crude Oil 86.1% Alberta Government#17A Diversified and Resource-based Economy Environment ☐ ☐ ☐ Alberta is implementing a world-class, integrated and science-based environmental monitoring system to deliver comprehensive and transparent monitoring for air, land, water and biodiversity across the province, starting in the oil sands region. The Alberta government has committed $1.3 billion to commercial scale carbon capture and storage projects. Our $1.3 billion fund is one of the largest commitments to this technology in the world...from a province of just over four million people. The Government of Alberta has set a firm renewable energy target to ensure 30 per cent of electricity used in Alberta will come from renewable sources, such as wind, hydro and solar by 2030 in order to protect the province's health, environment and economy. Alberta Government#18A Diversified and Resource-based Economy Agriculture ☐ Alberta has one of the world's most productive agricultural economies, with a total farm area of 50.3 million acres or 20.3 million hectares. In 2016, farm cash receipts for Alberta totaled $13.5 billion, representing 22 per cent of Canada's primary agricultural production. The province posted the highest cattle receipts as well as the second highest total crop receipts in the country. Alberta has an expanding value-added agricultural products sector. In 2016, sales of Alberta's processed food and beverage industry were $14.6 billion making it Alberta's top manufacturing industry on a revenue basis. Meat product manufacturing accounts for just over one-half of the sector's sales. The addition of 2,350-square-metres of business incubation and development space makes Alberta's Food Processing Development Centre and Agrivalue Processing Business Incubator the largest of its kind in the world. Alberta Government#19A Diversified and Resource-based Economy Agriculture Alberta's Major Agricultural Products 2016 Farm Cash Receipts ($ Billions) Total: $13.5 Billion Cattle & Calves 4.58 Canola Wheat (incl. Durum) Peas, Beans & Lentils 2.85 1.90 0.90 Dairy 0.56 Hogs 0.40 Poultry & Eggs 0.37 Oats, Rye & Barley 0.30 Other* 1.63 *Includes potatoes, honey, hay, floriculture, crop insurance and other program payments, etc. Source: Statistics Canada Alberta Government#20A Diversified and Resource-based Economy Forestry ☐ In 2016, shipments of forest products reached a record $5.6 billion, and exports were $2.9 billion. Forest products include pulp, paper and wood products such as lumber and oriented strand board. Fifty-eight per cent or 38 million hectares of Alberta is forested. Of the forested area, about 60 per cent or 22.5 million hectares are considered suitable for harvest. Alberta's commercially productive timber land base of 26.1 million hectares covers 40 per cent of Alberta's total area and includes in excess of 2.2 billion cubic metres (m³) of growing stock. Annually, Alberta allows 30.7 million m³ to be harvested, of which 18.7 million m³ is coniferous, and 12 million m³ is deciduous. Alberta Government#21A Diversified and Resource-Based Economy Manufacturing ◉ ☐ ☐ Prior to 2014 Alberta's manufacturing sector was one of the fastest growing manufacturing sectors in the country as the value of sales more than quadrupled between 1992 and 2014. However, sales in this sector declined in 2015 and 2016 as a result of slumping oil and gas investment which impacts a number of manufacturing industries, especially metals and machinery. Because of the recession real output (GDP) of Alberta's manufacturing sector decreased seven per cent between 2011 and 2016. The largest manufacturing sub-sectors on a GDP basis are processed foods and beverages, chemicals, fabricated metals, industrial machinery, refined petroleum products and wood products. About one-fifth of manufacturing output consists of value-added industrial products such as fabricated metals, machinery and electronics. Alberta Government#22A Diversified and Resource-based Economy Manufacturing Value of Alberta Manufacturing Sales in 2016 Total: $62.6 Billion Food & Beverage Chemical Products Refined Petroleum Forest Products Fabricated & Primary Metals Machinery Non-Metallic Construction Materials 2.0 Plastics & Rubber 1.7 Electronic & Electrical Products 1.1 Other Manufacturing Source: Statistics Canada 2.7 3.6 5.6 5.4 13.2 12.7 $ Billions 14.6 Alberta Government#23A Diversified and Resource-based Economy Advanced Technology Industries ☐ ◉ ☐ ☐ Alberta's key advanced technology sectors include clean technology, information and communications technology (ICT), life sciences and nanotechnology. The Alberta government, through Alberta Innovates, is committed to working with industry to support new technology development, increase commercialization and develop new markets and opportunities. Alberta's ICT industry includes about 4,600 companies and 45,000 employees generating about $16 billion in annual revenues in 2015 making ICT one of Alberta's key sectors. Alberta is home to more than 200 life sciences companies, employing about 4,600 workers. The University of Alberta is home to the National Institute for Nanotechnology. Alberta Government#24A Diversified and Resource-based Economy Advanced Technology Broadband Speed Broadband Speed in 2015 Download speeds for high-speed/ premium internet services (mbps) Source: speedtest.net Ontario Alberta British Columbia 59 59 Quebec Saskatchewan 50 Manitoba 49 58 70 99 99 Alberta Government#25A Diversified and Resource-based Economy Financial Services ☐ ☐ Over the past 10 years, Alberta's financial services sector has experienced exceptional growth fuelled by high levels of capital investment in Alberta's energy sector. Even during the 2015-2016 recession Alberta's financial services sector continued to grow. This sector includes six major Canadian banks and is also home to the headquarters of a number of regional financial institutions including Canadian Western Bank, Servus Credit Union, ATB Financial, and Alberta Investment Management Corporation (AIMCO) as well as branches of 75 per cent of the top 20 global investment banks. Alberta has developed world-class expertise in niche sectors in financial services such as asset management and energy finance. Between 2006 and 2016, Alberta's financial services sector GDP rose 42 per cent, outpacing financial services sector GDP growth in all other provinces. By comparison, GDP in Canada's financial services sector rose 28 per cent over the same period. Alberta Government#26A Diversified and Resource-based Economy Financial Services Alberta 24.1 Ontario 22.3 Financial Services Employment Growth 2006 - 2016 Percentage increase in Employment 18.0 Canada British Columbia Quebec 5.7 16.7 Financial Services GDP Growth 2006 - 2016 Percentage increase in GDP Source: Statistics Canada Alberta Ontario Canada British Columbia Quebec 19.3 30.7 28.0 24.6 41.7 Alberta Government#27A Diversified and Resource-based Economy Tourism ☐ Tourism in Alberta is a significant economic driver. It supports more than 127,000 jobs across Alberta, and generated approximately $8.3 billion in tourism expenditures in 2014. Forty per cent of these expenditures, about $3.3 billion, came from out-of-province and international visitors. The Calgary and area tourism region received the most overnight visitors in 2014, accounting for one-quarter of all person-nights spent in the province. The Edmonton and area, Central, and Canadian Rockies tourism regions followed closely behind, accounting for 22 per cent, 20 per cent and 16 per cent, respectively. Alberta offers its residents and visitors exceptional tourism experiences and adventures. We have world-renowned attractions, vibrant cities, and the most diverse and scenic landscapes in North America. Alberta has five UNESCO World Heritage Sites, more than 480 provincial parks, 18 provincial historic sites, and five national parks. Alberta Government#28A Diversified and Resource-based Economy Tourism Alberta Tourism Expenditures by Visitor Origin (2014) Total: $8.3 Billion Overseas United 8% States 10% Other Canada 18% Alberta 64% Source: Statistics Canada and Alberta Culture and Tourism Alberta Government#29Doing Business in Alberta Competitiveness In 2016, Alberta's business sector had the highest labour productivity level in the country. The total value added per hour worked in Alberta exceeded the Canadian average by about 39 per cent. Alberta's productivity advantage over other Canadian provinces is substantial; however its rate of productivity growth had been slow for many years. This low productivity growth rate was due to changes in the nature and composition of Alberta's energy output. In the last few years Alberta's productivity performance has improved because of a productivity resurgence in the energy sector. Although Alberta's short-term economic growth prospects have weakened because of low energy prices, Alberta's long-term economic growth prospects remain solid. Continued long-term economic growth depends on increased productivity growth in order to optimize the economic benefits from energy investment in Alberta, and to encourage higher value added activity and industrial diversification. Alberta Government#30Doing Business in Alberta Competitiveness Business Sector Labour Productivity 2016 Real GDP per Hour Worked, in 2007 constant dollars Alberta Newfoundland and Labrador Saskatchewan Canada British Columbia Manitoba Ontario Quebec New Brunswick Nova Scotia Prince Edward Island $70.20 $66.90 $57.10 $50.40 $48.90 $48.60 $47.50 $44.20 $36.60 $35.90 $30.90 Source: Statistics Canada Cansim Table 383-0033 (business sector excluding private households) Alberta Government#31Doing Business in Alberta Entrepreneurship ☐ ☐ Alberta's dynamic and innovative business climate is evident by the growth in the number of small businesses. Although small businesses in Alberta have been hit hard by the recent recession, the number of employees in small businesses still grew by 8.1 per cent between 2011 and 2016, higher than Canada's 6.7% increase. According to Statistics Canada small firms with 0 to 99 employees account for about 40 per cent of Alberta's GDP. Alberta's small business corporate income tax rate fell to two per cent in 2017, and the small business income threshold is $500,000. Since it launched in 2009, the Innovation Voucher program awarded nearly $40 million to almost 1,100 projects by small technology and knowledge- driven businesses across Alberta. The Government of Alberta has invested $100 million to attract more venture capital to Alberta to grow early-stage technology companies. Alberta Government#32Doing Business in Alberta Entrepreneurship Small Business - Cornerstone of the Economy Percentage Change in Employment in Small Business Establishments between 2011 and 2016 (Less than 50 Employees) Ontario British Columbia Alberta Saskatchewan Manitoba Canada Newfoundland and Labrador Quebec Prince Edward Island New Brunswick 10.2% 10.2% 8.1% 7.6% 7.4% 6.7% 3.2% 1.2% | 0.1% 0.0% -0.5% Nova Scotia Source: Survey of Employment, Payrolls and Hours, Statistics Canada Alberta Government#33Doing Business in Alberta Research, Innovation & Commercialization ◉ The Alberta government's research and development expenditures are among the highest in Canada, on a per capita basis, partially thanks to annual draws on two research endowment funds valued at over $2 billion. Alberta has an established competitive funding program for Alberta's post-secondary institutions that supports the acquisition of research equipment to build research capacity. Since 2001, the program's investment of $287 million has leveraged $926 million more in other funding. Alberta is at the forefront of key research areas, such as biorefining and biocomposite materials, nanotechnology, machine learning and data analysis, cleaner energy production and alternative energy, cardiovascular health, brain health, diabetes, biomedical technologies, and infectious diseases. Alberta's provincial SR&ED tax credit is worth 10 per cent of a company's eligible expenditures up to $4 million, for a maximum credit of $400,000. Alberta Government#34Doing Business in Alberta Research, Innovation & Commercialization ALBERTA INNOVATES InnoTech ALBERTA Alberta Innovates, a provincial corporation, drives Alberta's provincial research and innovation efforts in key areas, building on Alberta's strengths in health, environment, energy, food, forestry/fibre, and emerging technology. It takes a more focused and integrated approach to meeting the needs of innovators and researchers by having businesses, government and academia collaborate and gain access to world renowned experts and one-of-a-kind infrastructure and equipment to solve problems. Collectively, Alberta Innovates and Alberta's post-secondary institutions have attracted some of the world's largest and most successful corporations and researchers to partner with Alberta. InnoTech Alberta Inc., a subsidiary of Alberta Innovates, provides applied research services, including testing new technology on province-wide scale to industry and government. Alberta Government#35Doing Business in Alberta Government The Alberta government is committed to free enterprise, sustainable economic development, a competitive tax environment and strong infrastructure. Alberta's strong fiscal position, minimal debt, and savings built from past surpluses will assist the government in dealing with the current economic and fiscal challenges posed by weak oil and gas prices. As of December 31, 2016, Alberta's Heritage Savings Trust Fund (long- term savings) was valued at $19.1 billion. Alberta Government#36Doing Business in Alberta Government Provincial Net Financial Assets/Debt as a per cent of GDP (2016 - 2017) -33.7% -34.1% -35.0% -36.5% -37.5% -41.1% -45.6% -13.6% -15.1% -3.1% Alberta Saskatchewan British Columbia Manitoba Prince Edward Island Canada Nova Scotia Ontario New Brunswick Newfoundland and Labrador -46.7% Source: Conference Board of Canada Québec Alberta Government#37Doing Business in Alberta Competitive Corporate Taxes ☐ ☐ ☐ Alberta has one of the most competitive business tax environments in North America. The combined federal/provincial corporate income tax rate in Alberta is 27 per cent. By comparison, the combined effective average federal/state corporate income tax rate in the U.S. is 38.9 per cent. The Government of Alberta's general corporate income tax rate is 12 per cent and the Government of Canada rate is 15 per cent. The combined federal/provincial corporate income tax rate for small businesses in Alberta is 12.5 per cent. In 2017, Alberta's small business income tax rate was reduced from three per cent to two per cent. The low income tax rates combined with no provincial capital taxes or taxes on financial institutions, no payroll taxes, no sales tax, and a publicly funded health-care system makes Alberta's tax environment very competitive. Alberta Government#38Doing Business in Alberta Competitive Corporate Taxes Comparison of Corporate Income Taxes United States January 2017 32.9% 6.0% 38.9%* Alberta January 2017 15.0% 12.0% 27.0% ■ Federal ■ Provincial/State *6.0% represents the average top general state corporate income tax rate. Sources: Alberta Economic Development & Trade and OECD.Stat Alberta Government#39Doing Business in Alberta Provincial & State Corporate Taxes Provincial Corporate Income Tax Rates (per cent) State Corporate Income Tax Rates (per cent) Province General Manufacturing Small & Processing Business Manufacturing State General & Processing Small Business Alberta* 12 12 2 Oregon 7.6 7.6 6.6 British Columbia 11 11 2 California 8.84 8.84 8.84 New Brunswick 14 14 3 North Dakota 4.31 4.31 4.07 Quebec 11.8 11.8 8 Montana 6.75 6.75 6.75 Manitoba 12 12 0 Idaho 7.4 7.4 7.4 Saskatchewan 12 10 2 Colorado 4.63 4.63 4.63 Ontario 11.5 10 4.5 Utah 5 5 5 Newfoundland & Labrador 15 15 3 New Mexico 6.2 6.2 4.8 Prince Edward Island 16 16 4.5 Louisiana 8 8 6.42 Nova Scotia 16 16 3 Arizona 4.9 4.9 4.9 Federal 15 15 10.5 Federal 35 31.85 34 Note: U.S. rates are for January 2017 and Canadian rates are for April 2017 The small business rate is the effective tax rate for US$380,000 (comparable to the Canadian threshold of Cdn$500,000) The small business income threshold for Nova Scotia and Manitoba is Cdn$350,000 and $450,000, respectively. For all other provinces the small business income threshold is Cdn$500,000 Source: Canada Revenue Agency, Tax Foundation, KPMG Tax Facts 2016-2017, PWC Alberta Government#40Doing Business in Alberta Educated Work Force ☐ Alberta's labour force consists of 2.5 million workers. In 2016, 68.7 per cent of the labour force 25 years of age and older reported holding a university degree, post-secondary diploma or certificate. In 2016, there were more than 58,000 registered apprentices training at approximately 14,800 employer sites around Alberta. Alberta's apprenticeship and industry training system is second to none, training 21 per cent of Canada's apprentices, despite having only 13 per cent of its labour force. Alberta Government#41Working in Alberta Labour Market Between 1990 and 2015, Alberta's unemployment rate was one of the three lowest of all the provinces in Canada. From 2010 to 2015, Alberta's unemployment rate averaged 5.3 per cent, compared to 6.8 per cent in British Columbia and 7.7 per cent in Ontario over the same period. In 2016, Alberta's unemployment rate had risen to 8.1 per cent, higher than the Canadian average of 7.0 per cent. Although Alberta's unemployment rate has risen from historical lows to rates that are currently higher than what economists typically generalize as a balanced labour market, Alberta is expected to have a balanced labour market once the current slowdown ends. Alberta has a dedicated work force: in 2016 full-time workers in Alberta were absent from work for an average 7.5 days compared with 9.5 days for the average Canadian worker. Alberta Government#42Working in Alberta Labour Market Unemployment Rates (%) by Province: 2010 – 2015 (average) and 2016 - 4.6 Saskatchewan Alberta Manitoba British Columbia 6.3 5.3 8.1 5.4 6.1 6.8 6.0 7.3 2010-2015 Canada 7.0 ■ 2016 7.7 Ontario 6.5 7.8 Quebec 7.1 9.1 Nova Scotia 8.3 New Brunswick Prince Edward Island Newfoundland & Labrador Source: Statistics Canada 9.8 9.5 11.0 10.7 12.7 13.4 Alberta Government#43Working in Alberta A Dedicated Work Force Total Days Lost per Full-Time Worker per Year by Province in 2016 Alberta Ontario British Columbia Canada Newfoundland & Labrador Manitoba Prince Edward Island New Brunswick Nova Scotia Saskatchewan Quebec 7.5 Note: Days lost due to illness, disability or personal or family responsibility Source: Statistics Canada 8.5 9.4 9.5 9.7 10.4 10.5 10.5 10.5 10.6 11.9 Alberta Government#44Working in Alberta Low Personal Taxes Alberta's personal tax advantage results from low personal income tax rates, no general sales tax, and low gasoline taxes. Even with the new carbon levy, Alberta has the third-lowest provincial charges on gasoline and diesel in 2017. Albertans pay low personal income taxes, with one of the lowest marginal income tax rates and the highest basic and spousal tax credit amounts in Canada. As provided in the following examples, in Alberta, a two-income family of four: Earning $100,000 pays $3,800 less in total taxes than in Ontario and about $2,600 less than in British Columbia. Earning $200,000 pays $7,600 less in total taxes than in Ontario and about $20,000 less than in Quebec. Alberta Government#45Working in Alberta Low Personal Taxes Top Marginal Personal Income Tax Rates 2016 British Columbia 33.0% 14.7% 47.7% Saskatchewan 33.0% 14.75% 47.75% Alberta 33.0% 15.0% 48.0% Newfoundland & Labrador 48.3% 33.0% 15.3% Manitoba 33.0% 17.4% 50.4% Prince Edward Island* 33.0% 18.37% 51.37% New Brunswick 33.0% 20.3% 53.3% Quebec** 27.56% 25.75% Ontario* 33.0% Nova Scotia 33.0% 53.31% 20.53% 53.53% 21.0% 54.0% * Prince Edward Island and Ontario's top provincial rates include a surtax ** Quebec residents receive an abatement of 16.5% of basic federal tax because of the province's decision to opt out of federal cash transfers in support of provincial programs Source: KPMG Alberta Government#46Working in Alberta Low Personal Taxes Comparison of Provincial and Federal Taxes by Province Two-Income Family of Four - $100,000* Comparison of Provincial and Federal Taxes by Province Two-Income Family of Four- $200,000* Alberta $5,195 $17,734 Saskatchewan $6,707 $19,251 British Columbia $7,817 $20,341 Ontario $8,998 $21,541 Manitoba $10,043 $22,547 New Brunswick $10,523 $23,016 Prince Edward Island $11,217 $23,693 Nova Scotia $11,407 $23,882 Newfoundland & Labrador $12,321 $24,816 Québec $12,944 $25,982 ■Total Federal Tax ■Total Provincial Tax Alberta $14,006 $51,055 British Columbia $16,226 $53,281 Saskatchewan $18,287 $55,285 Ontario $21,611 $58,633 New Brunswick $25,026 $61,905 Manitoba $25,124 $62,010 Prince Edward Island $26,153 $62,999 Nova Scotia $26,943 $63,770 Newfoundland & Labrador $27,949 $64,828 Québec $33,393 $70,978 ■Total Federal Tax ■Total Provincial Tax Source: Alberta Treasury Board and Finance (* as of April 2017) Note: Comparisons are for a family with a 60/40 income split and two children aged 6 and 12. It includes the impact of income taxes, sales taxes, fuel taxes, health premiums and payroll taxes Alberta Government#47Working in Alberta Family Income ☐ ☐ In 2014, for the 11th consecutive year, families living in Alberta had the highest median after-tax income at $93,200. For that same year, the median after-tax income was $84,000 in second-ranked Saskatchewan and $75,700 for all of Canada. After-tax family income is comprised of market income and government transfers net of income taxes. Another measure of income is median family market income. This is the sum of earnings from employment, investment income and private retirement income excluding government transfers. In 2014, Alberta families had $102,600 in market income, 34 per cent more than the Canadian average of $76,400, and $13,400 more than second- ranked Saskatchewan. Alberta Government#48Working in Alberta Family Income 2014 Median After-Tax Family Income Couple Families* Alberta Saskatchewan $93,200 $84,000 Ontario $78,200 British Columbia $77,100 Canada $75,700 Newfoundland and Labrador Manitoba Quebec Nova Scotia Prince Edward Island New Brunswick $72,100 $71,700 $67,000 $65,700 $65,600 $64,200 * A couple family consists of a couple living together living at the same address with or without children Source: Statistics Canada - Cansim Table 206-0012 Alberta Government#49Working in Alberta Standard of Living ☐ ☐ Alberta has been the nation's leader in economic well-being for more than 30 years and in socio-economic well-being for the past 10 years. The Index of Economic Well-Being is a measure of economic welfare and includes measures of wealth, the distribution of income and wealth, economic security, environmental sustainability and non-market activities such as household work. In 2015, Alberta maintained the top spot in the nation and ranked second in an international comparison of economic well-being in Alberta and 14 OECD nations. The Human Development Index is a measure of socio-economic well- being and includes measures of life expectancy, education and income. In 2015, Alberta was tied for first with Ontario among the provinces and tied for fifth in an international comparison of the 13 Canadian provinces and territories and 175 OECD nations. Alberta Government#50Working in Alberta Standard of Living Index of Economic Well-Being Provincial Comparison, 2015 Index of Economic Well-Being International Comparison, 2015 Alberta Newfoundland 0.701 Norway 0.794 Alberta 0.718 0.595 Netherlands 0.690 Saskatchewan British Columbia 0.583 Belgium 0.681 Germany 0.644 0.575 Denmark 0.643 Canada 0.572 Finland 0.642 Ontario 0.548 France 0.642 Sweden 0.627 Quebec 0.543 United Kingdom 0.595 Manitoba 0.542 Australia 0.572 Canada 0.551 Nova Scotia 0.538 Italy 0.511 Prince Edward Island 0.537 United States 0.493 New Brunswick 0.524 Spain 0.393 Source: Centre for the Study of Living Standards Alberta Government#51Working in Alberta Standard of Living Human Development Index Provincial Comparison, 2015 Human Development Index International Comparison, 2015 Alberta Ontario 0.925 Norway Australia 0.925 Germany British Columbia Canada Quebec 0.921 Alberta Denmark 0.920 Netherlands 0.916 United States Saskatchewan 0.908 Canada Sweden Newfoundland 0.903 United Kingdom Nova Scotia 0.894 France Manitoba 0.894 Belgium Prince Edward Island New Brunswick 0.890 0.888 Finland Italy Spain Source: Centre for the Study of Living Standards 0.949 0.939 0.926 0.925 0.925 0.924 0.920 0.920 0.913 0.910 0.897 0.896 0.895 0.887 0.884 Alberta Government#52Living in Alberta People Alberta is home to an ethnically diverse population of over four million people. One in six Albertans was born outside of Canada, making Alberta one of the most multi-national and multi-cultural provinces in the country. Alberta has the youngest population of all Canadian provinces with a median age of 36.3. This compares to a median age of 40.6 in Canada. A vast majority of the population are of European ancestry, with a strong representation of Aboriginal people and an increasing number of migrants from Asia and other regions. This all contributes to the province's rich cultural diversity. Between 2006 and 2016 Alberta's population grew by 24.3 per cent, the largest increase of any province or state in North America. Alberta Government#53Living in Alberta People Alberta Population by Ethnic Origin, 2011 Ethnic Origin Number % of Total Population Ethnic Origin Number % of Total Population Totals 3,567,975 100.0% Total 3,567,975 100.0% English 886,760 24.9% Russian 99,780 2.8% Canadian 776,695 21.8% Swedish 96,890 2.7% German 683,830 19.2% Métis 94,615 2.7% Scottish 670,955 18.8% Italian 88,705 2.5% Irish 565,120 15.8% British Isles 79,300 2.2% French 396,230 11.1% Welsh 75,875 2.1% Ukrainian 345,410 9.7% American 71,435 2.0% Dutch 182,270 5.1% Danish 59,060 1.7% North American Indian 177,140 5.0% Hungarian 52,025 1.5% Polish 174,380 4.9% Spanish 39,325 1.1% Chinese 155,960 4.4% Austrian 36,670 1.0% Norwegian 152,640 4.3% Vietnamese 32,505 0.9% East Indian 125,105 3.5% Romanian 29,425 0.8% Filipino 113,205 3.2% Lebanese 25,955 0.7% Note: These numbers add up to more than the total population due to multiple responses Source: Statistics Canada, 2011 Census of Population Alberta Government#54Living in Alberta People Alberta has Highest Population Growth in North America (Top 10 States/Provinces in Population Growth - 2006 to 2016) 24.3% Alberta 20.8% Utah 19.4% District of Columbia 19.3% 17.4% 16.7% 16.5% Texas Colorado North Dakota Nevada 15.0% Arizona 14.6% 14.4% Idaho Washington Sources: Statistics Canada, U.S. Census Bureau Alberta Government#55Living in Alberta Education Albertans are among the best educated people in North America. Alberta has 26 diverse educational institutions, modern facilities, integrated technologies, and online learning combine to create innovative teaching and research opportunities for over 268,000 students, spanning every region of the province. Alberta's post-secondary system is instrumental in supporting learners, society and the economy. It is a comprehensive, coordinated publicly funded post-secondary system that ensures all Albertans have access to affordable and high quality learning opportunities to meet their lifelong learning goals. This system has benefited from significant ongoing public investment in recent years. Alberta's post-secondary system is supplemented by a multitude of community-based, religious, and vocational training opportunities. Together, Alberta's post-secondary providers are offering the quality education and training Albertans need, where and when they need it. Alberta Government#56Living in Alberta Education Comprehensive Academic & Research Institutions Baccalaureate & Applied Studies Institutions Polytechnical Institutions Comprehensive Community Institutions Independent Academic Institutions Specialized Arts & Culture Institutions University of Alberta; University of Calgary; University of Lethbridge; Athabasca University Grant MacEwan University; Mount Royal University Northern Alberta Institute of Technology; Southern Alberta Institute of Technology Bow Valley College; Grande Prairie Regional College; Keyano College; Lakeland College; Lethbridge College; Medicine Hat College; NorQuest College; Northern Lakes College; Olds College; Portage College; Red Deer College Concordia Ambrose University; Burman University; University; The King's University; St. Mary's University Alberta College of Art and Design; The Banff Centre Alberta Government#57Living in Alberta Quality Education Alberta ranks with the world's best in terms of the quality of education. The Program for International Student Assessment (PISA) is a tool developed by the Organization for Economic Cooperation and Development (OECD) to provide policy-oriented indicators of the skills and knowledge of 15-year olds' capabilities as they near the end of compulsory education. Since 2000, PISA reports on reading literacy, mathematical literacy and scientific literacy every three years. The 2015 examinations placed Alberta among the top ranks of 79 jurisdictions, including 10 Canadian provinces, where the tests were conducted. Alberta students have the second highest average score in science, the third highest score in reading, and the fourteenth highest score in mathematics. According to the Programme for the International Assessment of Adult Competencies, Alberta adults ranked first among the provinces for both numeracy and literacy skills and also for problem solving skills. Alberta Government#58Living in Alberta Quality Education Top Scores in Mathematics, Science and Reading 2015 Program for International Student Assessment (PISA) Examinations Average = 500 Rank Mathematics Jurisdiction Score Rank Science Jurisdiction Score Rank Reading Jurisdiction Score 1 Singapore 564 1 Singapore 556 1 British Columbia 536 234567 Hong Kong-China 548 Quebec 544 23 Alberta 541 3 British Columbia 539 Macao-China 544 Chinese Taipei 542 Japan 532 7 BSJG-China 531 8 Korea 524 9 British Columbia 522 456789 Japan 538 Quebec 537 Estonia 534 Chinese Taipei 532 Finland 531 Macao-China 529 10 Switzerland 521 23456 819 Singapore 535 Alberta Quebec 533 532 Ontario 527 Hong Kong-China 527 Finland Ireland 526 521 10 Estonia 519 11 Vietnam 525 11 Korea 517 14 Alberta 511 12 Ontario 524 12 Nova Scotia 517 50 United States 470 4 34 United States 496 33 United States 497 1. PISA tests 15 year olds' Mathematics, Science and Reading skills 2. The rank is out of 79 jurisdictions Source: Measuring Up: Canadian Results of the OECD PISA Study, Council of Ministers of Education, Canada Alberta Government#59Living in Alberta Health Care Compared to other Canadian provinces, Alberta has the highest age/gender adjusted per capita spending on government health expenditures, funding more health services than required under the Canada Health Care Act. Alberta's health system directly employs over 100,000 people which serves a population of over four million. Alberta has the lowest 30-day hospital mortality rate for both strokes and heart attacks in Canada. The University of Alberta Hospital has performed the most heart, lung and heart/lung combined transplants in Canada, and was the first to offer mechanical hearts to both adults and children. The province provides 24-hour access to stroke care at 28 centres and prevention clinics around Alberta, resulting in 23 per cent fewer emergency/hospital visits and 25 per cent fewer in-hospital deaths from strokes since 2005. Alberta Government#60Living in Alberta Health Care Per Capita Government Health Expenditures 2015 ($ 000s)*** 30 Day In-Hospital Mortality Rate from Heart Attack (2009-2012) 30 Day In-Hospital Selected Health Indicators Mortality Rate from Stroke (2009-2012) *Note: Risk Adjusted Percentages ***Preliminary 4.3 5.2 6.4 7.2** ■Alberta Canada 13.9 15.0** **Canada data do not include Quebec due to differences in data collection Sources: National Health Expenditure Trends, 1975-2015, Canadian Institute of Health Information (CIHI); Health Indicators 2015 Report, CIHI and Statistics Canada Alberta Government#61Living in Alberta Arts and Culture Arts and culture activities accounted for 1.6 per cent of Alberta's gross domestic product and employed 55,518 Albertans in 2014. Alberta's cultural policy, The Spirit of Alberta, supports and creates opportunities for excellence in the arts, recreation and sports, and encourages the growth of the cultural industries. Alberta is a leader among the Canadian provinces in government investment in the arts and culture. Alberta companies provide the second highest level of per capita support to the arts in Canada. In 2015-16, the Alberta Media Fund invested in 88 film, television and digital media projects to develop local production expertise and talent. Alberta Government#62Living in Alberta Arts and Culture Private Sector Support of Performing Arts (2014) Per Capita Average Household Spending on Live Sporting and Performing Arts Events: 2011 (Annual Dollars) Ontario Alberta Canada British Columbia Manitoba Quebec Saskatchewan Nova Scotia Newfoundland... New Brunswick $5.68 British Columbia $183 $5.55 Manitoba $181 $4.33 Alberta $173 $4.21 Canada $113 $4.20 Saskatchewan $105 $2.63 Ontario $99 $2.27 Nova Scotia $90 $2.02 New Brunswick $72 $1.91 Quebec $71 $1.42 Newfoundland and Labrador $56 Note: Excludes statistics for Prince Edward Island which were suppressed for confidentiality reasons Source: Statistics Canada Note: Excludes statistics for Prince Edward Island which were too unreliable to publish Alberta Government#63Living in Alberta Donations and Volunteerism Charitable donations, volunteering time to charitable and non-profit organizations, and helping people in need directly help build community. Albertans give generously of their time and money for charitable causes. The average annual donation for Alberta was $863 in 2013, the highest in the country and far outpacing the Canadian average of $531. The total amount donated by Albertans to charitable and non-profit organizations was $2.4 billion in 2013, double the $1.2 billion that was donated in 2004. By comparison, the total amount of donations all Canadians made rose from $10.4 billion to $12.8 billion, an increase of 23%. In 2013, the volunteerism rate of Albertans in support of schools, charitable and other non-profit organizations was 50.1 per cent compared to 43.6 per cent in Canada. The total annual volunteer hours were 262 million hours or 161 hours per volunteer. Alberta Government#64Living in Alberta Donations and Volunteerism Alberta British Columbia Manitoba Saskatchewan Ontario Canada Prince Edward Island Nova Scotia Newfoundland and Labrador New Brunswick Quebec Charitable Donor Statistics Average Annual Donations, 2013 $863 $704 $699 $680 $532 $531 $497 $396 $350 $345 $264 Source: General Social Survey of Giving, Volunteering and Participating, Statistics Canada Alberta Government#65Alberta On-Line Resources Alberta Government : www.alberta.ca Alberta Economic Development and Trade: economic.alberta.ca www.albertacanada.com Doing Business in Alberta: Investing in Alberta Export your Products Industry Sectors Regional Development Community/Market Information Alberta Economic Dashboard Alberta Regional Dashboard Inventory of Major Alberta Projects Visiting Alberta: Travel Alberta Provincial Parks Tourism Working and Living in Alberta: Immigrating Working in Alberta Health Care Education Alberta Learning Information Service www.albertacanada.com/business/invest/establishing-a-company.aspx www.albertacanada.com/business/export-your-products.aspx www.albertacanada.com/business/alberta-industries.aspx communityeconomicdevelopment.alberta.ca www.albertacanada.com/about-alberta/the-economy.html economicdashboard.alberta.ca regionaldashboard.alberta.ca majorprojects.alberta.ca travelalberta.com www.albertaparks.ca culture.alberta.ca www.albertacanada.com/opportunity.aspx www.albertacanada.com/opportunity/work.aspx www.health.alberta.ca education.alberta.ca alis.alberta.ca Alberta Government