Calgary's Productivity Puzzle: Bridging the Skill Gap for a Stronger Tomorrow
People are talking about Canada’s productivity puzzle and how Calgary might fit into the solution. A new series of reports is diving into the skills gap and what it means for our local economy.
The Silent Drag on Every Calgarian's Wallet
Canada has a productivity problem, and while it might sound like an abstract economic term, it's a silent force directly impacting the daily lives, wallets, and futures of every Calgarian. New insights from the Canada West Foundation's “Productivity Project” series illuminate a multifaceted issue: weak capital investment, an uncompetitive business environment, and a widening chasm between the skills our workforce possesses and what industries actually need. For us here in Calgary, this isn't just about national averages; it's about the speed of our economic pulse, the quality of our public services, and the growth in our paychecks. Fundamentally, productivity is about working smarter, not necessarily harder—generating more value with the same or fewer resources. When productivity lags, so do wages, the tax base, and the resources available for everything from better roads to robust healthcare. Canada’s productivity has shown inconsistent performance, experiencing declines in multiple recent quarters, including a 1.0% drop in Q2 2025. This trend puts Canada's labour productivity roughly 28-30% behind that of the United States, a significant reversal from fifty years ago when we outpaced our southern neighbours. The irony? Canada boasts the most educated workforce among G7 nations, with over 57% of working-age individuals holding a college or university credential. Yet, we also grapple with the highest rates of underemployment among immigrants, a stark 14% compared to 7% for non-immigrants, signaling a critical disconnect.
Calgary's Proactive Push to Close the Gap
Recognizing the urgency, Calgary isn't standing still. Both the City and the provincial government are actively rolling out strategies to bolster our region's economic output and ensure our workforce is future-ready. Calgary Economic Development (CED) leads with its “Uplook: An Action Plan for Our Economy,” a comprehensive strategy focusing on five key pillars: talent, innovation, livability, business environment, and brand. This plan aims to position Calgary as a global hub for bright minds and big ideas. Under the “Uplook” umbrella, CED's innovation strategy is particularly ambitious, projecting to add up to 187,000 jobs and inject over $28 billion into the local economy by 2034. Initiatives like TalentED YYC are connecting our seven local post-secondary institutions directly with employers, forging crucial work-integrated learning opportunities. Calgary already enjoys a reputation as a business-friendly environment, boasting one of the highest concentrations of headquarters per capita in Canada and competitive corporate tax rates. The provincial government is also playing its part with the “Alberta 2030: Building Skills for Jobs” strategy. A cornerstone of this strategy is the *Skilled Trades and Apprenticeship Education Act*, which came into force in July 2022, modernizing how trades education is governed and ensuring a more responsive system to labour market demands. Significant investments are following, with $78 million allocated for apprenticeship programming in the 2024-25 academic year, including an additional $24 million per year for three years to create 3,200 new seats. To directly address labour shortages and attract talent from beyond our borders, the “Alberta is Calling” campaign, originally promising a $1,200 payment, now offers a $5,000 refundable tax credit for up to 2,000 eligible skilled tradespeople who relocate to the province between May 1 and December 31, 2024.
The Unfinished Business of Inclusive Growth
While these initiatives represent crucial steps forward, a deeper dive into human capital reveals areas where Calgary, and Canada, must do better. The Calgary Chamber of Commerce, in its recent “Inflection Point” report, echoes the call for streamlining regulations, simplifying business taxes, and prioritizing economic growth to enhance competitiveness. However, the Chamber also emphasizes that a truly competitive economy requires removing barriers to participation. For a city that actively promotes itself as a destination for skilled workers, ensuring that new Canadians and all residents can fully utilize their expertise is paramount. Critics rightly point out that a productivity strategy overly reliant on business incentives falls short without robust investment in workers. This means better credential recognition for internationally trained professionals, expanded workforce integration programs, and tackling systemic barriers like access to affordable childcare and mental health supports. As the Chamber itself notes, these aren't just good social policies; they are “essential to Canada’s economic competitiveness.” Ultimately, boosting Calgary's productivity is a collective endeavour. It demands continued strategic investment from all levels of government, a steadfast commitment from businesses to innovate and invest in their people, and a societal shift towards recognizing and fully integrating all available human capital. For Calgarians, successfully navigating this puzzle promises not just a stronger economy, but a higher standard of living and a more resilient, thriving community for generations to come.
