Cautious optimism has been the name of the game in Calgary this past year. However, recent developments have many dropping the word “optimism” from that phrase. Our city is still plagued with uncertainty related to low oil prices, no ability to get our resources to new markets and heightened government regulations. This has led economists to take a good hard look at our province and the reports are concerning:
A new report from the Conference Board of Canadasuggests Alberta could fall back into a mild recession this year
While the economists at ATB don’t believe we will officially re-enter a recession, they have cut their growth forecast in half
However, in the spring, Albertans elected a new government who won (in part) due to an obsession with job creation. This new government has brought confidence to some (and panic to others!). Corporate Calgary appears to be feeling positive about this change and is watching closely to see if these new initiatives will help. Only time will tell!
BUT… IT has a Better Story to Tell
While the general unemployment rate in Calgary is hovering around 7%, the good news is that Calgary’s ICT unemployment rate is 4.1%, which most economists would agree is “supply constrained”.
Every day, we are seeing our clients exploring different ways to use technology and, as a result, demand for IT professionals is increasing. Leveraging technology has become the “new” way of doing business and businesses are embracing it. However, at low unemployment levels, it is simply more difficult to attract and retain staff, which can make it difficult for businesses to leverage these new technologies to achieve growth.
Here at Eagle, we have seen a consistent improvement in our business over the past year. Comparing year-over-year data, our volume of job orders is up 40% and we have also seen a 20% reduction in applicants to our job postings. The need for resources is steadily increasing and the number of candidates looking for work has decreased.
Where is the Demand?
In a city that has too few jobs, there are absolutely some positions that are hurting for talent. We continue to see demand (and low supply) in the following areas:
Development: full stack developers, front-end developers, BI developers
IT Business Analysts with technical depth
Project-based activity has been picking up across most industries that we support. The majority of the project and programs are falling into one of these categories:
Demand in these areas is expected to continue as our clients continue to initiate multi-year initiatives. Given that we are already somewhat constrained by the availability of qualified resources, we expect demand to outpace supply in these areas in the very near future.