Why addressing income inequality is important to Alberta’s long-term recovery

Alberta’s post-pandemic recovery will require us to address a trend that was in play before COVID and will get worse after it’s over—income inequality. 

“We’ve got a growing income gap. There are fewer people in the middle class, more people at the lower end and more wealth concentrated at the higher end of the spectrum,” he says. 

The lower-wage job losses from the pandemic will be compounded by job losses due to technology advances like automation, robotics and artificial intelligence. Consider fast food restaurants or grocery stores that are replacing staff with self-serve kiosks, says Roach. 

“Those jobs will disappear and this will exacerbate the K-shape recovery in our economy,” he says.    

One solution to help  mitigate this long-term trend is education, he says. 

“We have a highly educated population, but it’s now about life-long learning, training on the job, re-skilling and upskilling,” he says. 

Areas industry leaders should consider for Alberta’s recovery

Industry leaders focused on both short-term and long-term recovery efforts should consider these five areas as opportunities to position their business for success in the post-pandemic economy. 

Look critically at your technology and the skills needed to use it.

The pandemic has accelerated the digital transformation of our economy and that’s not going away. C Suite leaders should take a concentrated look at the technology they are investing in and determine if it’s the right choice for the recovery and beyond, says Roach. Beyond that, ensure that your employees have the training in place to actually use the tech effectively. 

“Make sure you are paying attention to the technology but also the human capital to make it work,” he says. 

Offer continuous learning for employees.

When the economy is tough, it can be challenging to provide additional training for employees. However, skills training and professional development is an important tool for attracting and retaining employees, says Roach. It can also contribute to the reskilling necessary to keep Alberta competitive and growing in the long term. 

“While it’s not always possible, even small things, like subsidizing training, can put the destiny of those companies into their own hands a little bit more because you don’t have to wait for the right talent to show up,” he says.  

Diversify Alberta’s economy as the energy transition continues.

Alberta’s oil and gas industry is changing as it’s gotten leaner and embraced technology in order to compete globally and survive the pandemic, says Roach. 

“It’s going to be a huge asset for us for years and years to come. But it’s not going to be the same source of growth that it once was.” To plan for a more constrained future on this front, both the energy industry and Alberta’s wider economy, must continue to diversify, adds Roach. 

Natural gas has a bright future as coal-fired electricity switches to gas and cleaner fuels are sought out around the world. In energy more broadly, Alberta is a leader in alternative energy and renewables, including wind, geothermal and hydrogen energy.    

Outside of oil and gas, Roach says there are a number of sectors with opportunity for significant growth, such as agrifood and technology. For example, Vancouver-based mCloud Technologies Corp—which uses artificial intelligence to measure and mitigate energy waste—is moving its headquarters to Calgary in 2021 and plans to double its staff. It will be joining a number of dynamic tech companies (including Attabotics and Benevity, to name a couple) that already make Alberta home.

While no one sector can replace the massive contribution of the oil and gas industry to the economy, growth across a range of sectors will add diversity and make Alberta’s economy more resilient in post-pandemic years.   

Consider global for growth. “The global middle class is growing and looking for products and services that Alberta can provide,” says Roach. While taking a business global is not something to be underestimated, Canadian business leaders are not always as aggressive as other countries’ leaders when it comes to tapping into international opportunity. Now is the time to consider it.

“We’re a global trader and we need to remind ourselves there is  a market of 7.6 billion people on top of  the 4.3 million here in Alberta,” he says. 

Roach acknowledges the international market is a bit more hazardous with things like Brexit, our tense relationship with China and rising protectionism. However, Canada has comprehensive trade agreements with Europe, Asia-Pacific, the U.S. and Mexico. 

“We need to maximize those as much as we can and build relationships internationally because that’s where the biggest market is,” he says. 

Prioritize environmental, social and governance (ESG) policies

Whether you’re a small, mid-size or large company, Roach says now is the time to prioritize your company’s ESG policies. 

“I think we can over emphasize how much investors focus on this, but there is a movement toward higher expectations regarding ESG,” he says. “Alberta businesses that are already on top of this need to keep going and figure out how they take advantage of it. There is an economic payoff and our competitors are certainly thinking about it so we want to keep working on that.”

Roach says one area where Alberta must continue to lead on at an industry level is creative discussions around carbon reduction and going green.   

The social aspect includes being more supportive of workers and potential workers who are responsible for caring for family members. These roles tend to fall to women and we have seen how the pandemic has created additional challenges for women in this respect.

Despite the short-term challenges, Roach is positive about Alberta’s recovery. 

“We are one of the best kept secrets. We’ve been struggling compared to where we were during the boom, but we are still an economic powerhouse,” he says.