Billionaire haggled Home Capital price down as rates rose – report

Ari Altstedter
CMP

He may have saved hundreds of millions…

For prospective Canadian homebuyers, last year’s housing slump knocked about $72,000 off the price of a typical home. For billionaire Stephen Smith, who bought one of the country’s biggest alternative home lenders, it may have saved more than $200 million.

Smith first offered to buy Home Capital Group Inc. for CA$44 a share last April, but the lender’s board asked for CA$47 a share instead, according to a regulatory filing released Tuesday. Then, rapidly-rising rates tanked the housing market, eroding the company’s profitability and share price. Directors eventually came around to accepting Smith’s original bid — even though, by that time, the firm had fewer shares outstanding.

The takeover deal struck in November valued Home Capital at CA$1.7 billion — instead of the CA$1.9 billion of his first offer and the more than CA$2 billion the company countered with, according to Bloomberg calculations.

Just like anyone who bought a home last year, some of Smith’s savings on Home Capital’s ticket price may be swallowed up by the increased cost of the debt he plans to use to buy it. But the behind-the-scenes mechanics of the deal illustrate the power shift from sellers to buyers in the Canadian real estate sector — or at least, those buyers with cash. Smith, who co-founded First National Financial Corp. in 1988 and became a billionaire through the country’s long housing boom, may have merely been one of the first, and biggest, to act.

In an interview after the Home Capital deal was announced, Smith said he’d started buying its shares around January and February, when global central banks’ turn to tighter monetary policy started to weigh on the stock. Starting in March, the Bank of Canada began raising its overnight rate from 0.25% to 4.25% today, one of the fastest rate-tightening campaigns in the institution’s history.

That drove home prices down as higher borrowing costs forced prospective buyers from the market, and Home Capital’s shares fell further. Rising rates hurt mortgage originations and caused an immediate squeeze on profitability, as the company had to pay more for deposits, while most of the payments it collects from its mortgages are fixed.

It was against this backdrop that negotiations between Smith and Home Capital played out last year. Smith’s second offer was CA$37.50 per share, followed by CA$41, before the CA$44 price was finally negotiated between the two parties, the filings show.

When the deal was announced, Smith expressed faith that with unemployment low, Canadians will continue paying their mortgages — even in a slowing economy — and that home prices will eventually rebound from their current downturn.

But, so far not many other Canadians are take advantage of the discounts cropping up in the housing market. Last month, just a little over 3,000 homes were sold in Toronto, Canada’s largest city, as benchmark prices fell for the ninth straight month. A recent report by Royal Bank of Canada showed that, despite the decline in prices, housing affordability has reached its worst-ever level because borrowing costs have risen so much faster, and most people rely on a mortgage to fund the bulk of the purchase. 

 

Copyright © 1996-2023 KM Business Information Canada Ltd.

Sales in Metro Vancouver Slashed in Half Compared to December 2021: REBGV

Daniel Crook
ZOOCASA

In the final month of 2022, Vancouver suffered the effects of the winter market that have been seen widely across Canada – a cooldown in sales numbers. There were 1,295 sales in the Greater Vancouver area in December, down 19.8% month-over-month, according to the Real Estate Board of Greater Vancouver (REBGV).

The Cool Winter Market Turns Colder With Yet Another Interest Rate Hike

Buyer apprehension in December was compounded by the interest rate hikes from the Bank of Canada. After the seventh rate hike announcement in early December, homes have traded hands at even slower rates than expected. Sales numbers were 37.7% below the 10-year December sales average. Sales of detached homes fell by 23.6% to 371, while attached homes and condo apartments fell by 20.9% to 222 and 17.1% to 702, respectively.

• Read: Crushing Impact of BoC’s Interest Rate Hikes on Canada’s Housing in 2022

Sellers are just as hesitant to enter the market which is affecting already dwindling inventory levels. While there were 3,055 homes listed for sale in November, that number fell by 60.5% to 1,206 in December. Condo apartments suffered the most significant decline in new listings month-over-month, dropping 62.7% from 1616 to 602.  

 

2022 Figures Reflect the Apprehension of Prospective Buyers and Sellers

Despite Greater Vancouver hitting a record high for home prices early in the year, the story of 2022 has mainly been about the cost of borrowing and the impact on real estate in the area. Sales numbers have declined throughout the year, with the final figure of 28,903 being 34.3% lower than the 43,999 sales in 2021. With such a low interest rate throughout 2021, it’s no surprise that sales numbers have fallen so much.

• Read: Will the Market Bounce Back in 2023? Zoocasa’s Housing Predictions

Listings also remained below 2021 numbers throughout the year. There was a total of  53,865 homes listed throughout 2022, down 13.5% from 2021’s total of 62,265 homes. This is likely due to cooling buyer interest as the year went on, with many potential buyers riding the sidelines to see how rate hikes would unfold, and sellers less inclined to list their homes due to diminishing demand compared to the previous year, or even from the 2022 peak.

Home prices have taken a hit during the year as buyer interest and competition has dwindled, with the benchmark price in Vancouver, $1,143,300, being 9.3% lower than it was six months ago. “Closing out 2022, the data show that the Bank of Canada’s decisions to increase the policy rate at seven of the eight interest rate announcement dates in 2022 has translated into downward pressure on home sale activity and, to a lesser extent, home prices in Metro Vancouver,” said Andrew Lis, REBGV director.

Some Gains Experienced in Greater Vancouver Region

While the majority of markets are below the December 2021 price now, there are a few that still have a higher average. New Westminster experienced price gains of  1.4% year-over-year, now at $781,400. Port Moody followed suit, with price gains of 1.1%, while average prices in the Sunshine Coast and Richmond grew by 0.6% and 0.3% respectively. 

• Read: New Year’s Resolutions to Help You Buy a House in Canada

West Vancouver has had a 39.3% jump in sales in contrast to the overall number, with 39 transactions completed throughout December. The number of new listings have fallen almost completely across the board, with only apartments in Whistler/Pemberton and attached homes in Delta expericing a growth in inventory of  27.8% and 80%, respectively.

The December market may have cooled in the Greater Vancouver region, but that doesn’t mean 2023 won’t be a great time to buy. Ready to make your move and find your perfect home? Give us a call today to speak to a local real estate agent and down our free Buyer’s and Seller’s Guides to get you started. 

Interested in Buying a Home in Vancouver?

 

Zoocasa © 2007–2022.

2023 to see weakest home sales levels for 22 years: TD

Fergal McAlinden
CMP

“Even if activity does bottom in the next few months, sales levels should remain depressed”This year will likely see the weakest sales year for Canada’s housing market since 2001 as affordability challenges continue to weigh on homebuying activity, according to a new report.
In its latest provincial housing market outlook, TD Economics said the “poorest affordability backdrop” since the late 1980s and early 1990s would probably have a significant impact on the market this year, although it also indicated that the months-long decline in home sales would likely end at some point in early 2023.
TD economist Rishi Sondhi said average home prices should also bottom out in the opening months of the year, with those figures expected to end around 20% lower than the market peak. That’s despite what is expected to be a steeper price decline in the short term than the bank had anticipated in September.
“Still, quarterly price growth in 2023 should be weaker than what we imbedded in our September forecast, as the Bank of Canada has taken their policy rate even higher than we had previously thought,” Sondhi said.
Average home prices and sales in Canada are expected by the bank to tick upwards in 2024, when lower inflation, interest rates, and higher immigration should prevail after a “weak” performance for the national economy throughout this year.
“These factors should manifest in stronger sales activity, though at a pace that will continue to lag pre-pandemic levels for much of the year,” Sondhi said. “Improving housing demand is also likely to stoke some renewed growth in prices. However, a still-constrained affordability backdrop will be a limiting factor.”
High affordability for buyers in Newfoundland and Labrador and the Prairies means those markets will probably slightly outperform others in broad-based 2024 price gains, Sondhi said, while pricier conditions in Ontario, British Columbia and the Atlantic will contribute to milder growth.
Still, much of that forecast depends on whether a flurry of inventory hits the housing market amid challenging conditions for current homebuyers. “If higher interest rates and economic weakness result in significant amounts of forced selling on the part of homebuyers, price growth could be weaker than we expect,” said Sondhi.

Copyright © 1996-2023 KM Business Information Canada Ltd.

Strong demand continues for industrial space on Vancouver Island

Andrew Duffy
Western Investor

‘We’ve seen a strong road to recovery for industrial and commercial properties across the Vancouver Island region’ says Jodie MacLennan, deputy assessor.
A new 110,000-square-foot Langford industrial complex with 32 strata units sold for $37 million in April 2022 before it was even finished. | William Wright Commercial
Scarcity of supply and continued demand for space on ­Vancouver Island have translated into industrial properties in the capital region seeing between a 10 and 20 per cent year-over-year increase in property valuations, according to B.C. Assessment.
It’s a sign of a resilient economy, said Jodie MacLennan, deputy assessor.
“We’ve seen a strong road to recovery for industrial and commercial properties across the Vancouver Island region for the 2022 and 2023 roll years,” said MacLennan. “These properties are in high demand.”
Ty Whittaker, vice-president with Colliers International ­Victoria, said the market for industrial land has been challenging as a result of rising interest rates, but there are still companies looking for space and there are still multiple offers for quality industrial sites.
“Our market still remains really highly sought after, so I still think we’re in really good shape going forward and once there’s just some stability in the debt market we’ll be fine,” he said.
Whittaker said the most recent data show the industrial vacancy rate remains at a record low of 0.2 per cent.
“Land values have all been increasing, as well as there are so few zoned industrial properties in the CRD to enable companies to grow and expand their operations,” he said. “Cost of construction unfortunately has continue to rise, which has actually halted planned developments so we also need some stability on that front.”
The assessment values reflect the strong demand.
The most valuable industrial property on the assessment roll in Greater Victoria was 2881 Amy Rd. in Langford, the Sysco warehouse, which was assessed at $51.4 million as of July 1, 2022, up from $48.5 million a year earlier.
Values on the 2023 assessment roll are based on market value as of July 1, 2022.
The property roll’s most valuable industrial property on the Island is Catalyst Paper’s mill in Duncan at 8541 Hay Rd. It was valued at $152 million.
But there are more valuable industrial properties that do not make the roll each year, but whose valuations reflect just how valuable the land is.
For example, the Department of National Defence dockyard facility was assessed at $455 million in this year’s roll, up from $437 million last year, Victoria International Airport’s main terminal was valued at $107 million this year, up from $83.5 million last year, the Esquimalt Graving Dock was assessed at $88.6 million this year, up from $87.3 million last year and the Swartz Bay ferry terminal was valued at $54 million, up from $48 million a year ago.
MacLennan said the majority of properties in the province are assessed at market value in accordance with the Assessment Act, but many government properties have other considerations when determining assessments. She noted they may not pay property taxes, but instead provide grants in lieu to the municipalities where the properties sit.
“Typically, these properties are not traded in the open market and are not subject to the same taxation scheme as other industrial properties,” she said. “So, given the uniqueness of these properties and their assessments, it doesn’t make sense to include these in the market value assessments.”

© 2023 Western Investor

How will the labour market likely influence BoC rate moves?

Ephraim Vecina
CMP

Industry observers weigh in on the dynamics between employment and interest rates

Canada’s stronger labour market performance in December might increase the odds of the central bank hiking interest rates yet again in its next meeting on January 25, according to a new Bloomberg survey of economists.

The increase of approximately 104,000 jobs in December, coupled with the unemployment rate falling to 5%, defied initial forecasts (increase of 5,000 jobs and jobless rate at 5.2%) by the Bloomberg-polled economists.

“The strong headline readings raises the probability of another 25bp hike at the January meeting, and is a clear risk to our forecast for a hold,” said Andrew Grantham, executive director and senior economist at CIBC Capital Markets.

Grantham stressed that several other pressures are likely to influence the Bank of Canada’s rate announcement.

“The next CPI (Consumer Price Index) report and the BoC’s own business and consumer surveys, released in two weeks’ time, will also be important in making that final decision,” Grantham said.

However, the number of total hours worked showed minimal change in December. Royce Mendes, managing director and head of macro strategy at Desjardins Group, said that this element has a more direct impact on GDP.

“Despite the apparent hiring spree, the economy didn’t seem to be producing much more goods and services,” Mendes said. “Our tracking for Q4 (fourth quarter) GDP will likely remain around 1.5%.”

Still, Mendes said that while Canada’s actual labour market performance in December might not be as robust as the employment numbers would suggest, “the surge in hiring is probably enough to tilt the odds in favour of a final 25bp rate hike from the Bank of Canada later this month.”

 

Copyright © 1996-2023 KM Business Information Canada Ltd.

Canadian Mortgage Awards: Nominations close on Friday

Fergal McAlinden
CMP

Make sure to get your nominations in ahead of the January 13 deadline
The Canadian mortgage industry’s most prestigious awards ceremony is returning for 2023 – and the deadline to submit nominations arrives in just a few days.
The nomination window for the Canadian Mortgage Awards (CMAs) is open until 23:59pm EST on Friday, January 13, with mortgage professionals set to gather at Toronto’s Westin Harbour Castle on April 20 for one of the most eagerly awaited nights on the industry calendar.
Nominations can be made across a range of categories recognizing the top brokers, lenders, BDMs, service providers and more across Canada over the past 12 months.
Excellence Awardees are set to be announced across Canadian Mortgage Professional’s online channels in February, with final winners to be revealed at the April awards show and profiled in CMP magazine.
The CMAs: an unforgettable night
In 2022, the CMAs made a triumphant return as a live, in-person ceremony after two years as a virtual event due to the COVID-19 pandemic, with a full crowd in Toronto raising a glass to the best and brightest that the mortgage industry has to offer.
Christine Xu (pictured top), president of MoneyBroker Canada, was named winner of the Community Trust Award for Alternative Broker Specialist of the Year at the 2022 event. A serial winner at the CMAs – last year’s was her fourth award in that category – she said her success down the years in the awards had proven an invaluable asset to her business.
“It’s great to be recognized. It’s a very honorable award,” she said. “And for me, it’s also a very good marketing piece for telling my clients and potential clients that we’re doing a great job.”
Winning an award at the CMAs is no easy feat, with the leading mortgage professionals across the country vying for the top honour in each category.
Xu said her success has proven a reflection of the focus she places on alternative lending, with a clear track record of achievement in that space – and also on the commercial side. “I think [the key has] been the volume – over 95% of my total volume is alternative financing,” she explained. “So that’s what I emphasize: that volume, and the percentage.

“I’m always focusing on the alternative side. To compete with a bank or mortgage specialist on the A side is larger business, but I think as brokers we have an advantage over the bank specialist and we should take advantage of that, especially now that it’s harder to qualify for the A side.”
The return to an in-person format in 2022 was a welcome one, Xu said, offering the opportunity to reconnect with colleagues and friends and gather as an industry to honour the leading performers over the previous year.
“It was great to see so many industry colleagues in the same room and to see people after two years,” she said. “It’s great to get together. I think it was a really impressive ceremony, it was a great night, and everybody was so happy – winners, potential winners or people who are just cheering for everybody. It was really nice.”
How to submit your CMAs nominations
The process to submit a nomination for the CMAs is a straightforward one. Just click here to select the category you want to submit an entry for, entering both your details and those of your nominee. You’ll be asked to include a brief summary of why you feel your chosen nominee deserves to be recognized in their category for this year.
Make sure to check out each of the categories to see if there are any you think yourself or a colleague would be a good fit for – awards are available for the top brokerages and brokers, lenders, underwriters, BDMs and service providers who have provided exceptional service and leadership over the past 12 months.
The ceremony is set to open with a cocktail reception, followed by the awards ceremony and dinner banquet, rounded off by a post-awards celebration.

Copyright © 1996-2023 KM Business Information Canada Ltd.

Pure casino portfolio in Alberta bought for $271.9 million

Frank O’Brien
Western Investor

Sale-leaseback deal sees U.S.-based Vici Properties REIT acquire all of Pure’s Alberta real estate assets

The 72,000-square-foot Pure Casino Edmonton is among the Pure portfolio sold and leased back.| Pure Canadian Gaming Corp.

Pure Canadian Gaming Corp. has sold its four Pure Casinos in Alberta to New York City-based real estate investment trust Vici Properties for $271.9 million (US$200.8 million) in a long-term sale-leaseback arrangement.

The deal includes the real estate assets of Pure Casino Edmonton in Edmonton, Pure Casino Yellowhead. Edmonton, Pure Casino Calgary, Calgary and Pure Casino Lethbridge in Lethbridge, Alberta.

The transaction, the first in Canada for Vici Properties, was announced January 9, 2023.

Simultaneous with the acquisition, VICI entered into a triple-net master lease agreement with Pure Canadian Gaming covering the Pure portfolio. The Pure Master Lease has an initial total annual rent of approximately C$21.8 million representing an implied acquisition capitalization rate of 8.0 per cent, and an initial term of 25 years, with four five-year tenant renewal options.

“Today’s announcement marks another momentous first for VICI as we expand our footprint internationally into Canada with the acquisition of the Pure portfolio,” said John Payne, president and CEO of VICI Properties, in a statement.

Pure is the largest gaming operator in Alberta, which VICI identifies as a “highly regulated market with minimal competitive threats and no significant changes to the business model over the last 30-plus years.”

VICI Properties Inc. is an S&P 500 experiential real estate investment trust that owns one of the largest portfolios of gaming, hospitality and entertainment destinations in North America. Properties include Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas, all on the Las Vegas Strip. 

 

© 2023 Western Investor

Sale of troubled Atmosphere project in Richmond put on hold

Peter Mitham
Western Investor

New building permit required to secure best value for the assets

A bid to sell the troubled Atmosphere project on Alderbridge Way and No. 3 Road in Richmond has been paused pending efforts to make it a development-ready project for prospective purchasers.

The outside closing date for the project has been extended several times, most recently on Nov. 1, when the courts approved an extension until Dec. 27.

But documents filed with B.C. Supreme Court in advance of a Dec. 9 hearing in Vancouver note that Bowra Group, the court-appointed monitor, “has not received any bids that are compliant” with the sales and investment solicitation process (SISP) underway since the spring. The process is being handled by Cushman & Wakefield ULC.

Court documents do not provide on the bids received to date.

With the consent of the project’s primary creditor, Romspen Investment Corp. of Toronto, Bowra suspended the SISP “until the building permit issue is resolved.” It has requested a stay of court proceedings until Feb. 24, 2023. It expects to initiate a new sales process in the spring.

A key hurdle is the fact the project’s building permit has expired and a new one is needed.

“[We] previously extended the SISP dates in anticipation of successful negotiations with prospective purchasers,” Bowra reported Dec. 7. “All prospective purchasers have indicated that until the new building permit is issued, no final offers would be submitted.”

But to obtain a new building permit, the services of GBL Architects are required. GBL, however, is owed approximately $540,000 for architectural services provided to Alderbridge LP, the project’s original developer, under an agreement with South Street Financial Corp.

Without the cooperation of GBL and a new building permit, Bowra told the court that the project would lose its density entitlements and command a lower value from the market. It could also experience a delay of up to 18 months while a new owner secures approvals.

Bowra has therefore asked the court to compel GBL to continue providing services so that a building permit can be obtained, the sales process can resume, and creditors can receive the best possible resolution of their claims.

A brochure Cushman & Wakefield prepared for the property earlier this year described it as “one of the largest, high-exposure properties along No. 3 Road,” noting that “site excavation and other work-in-place completed, enabling significant time and cost savings in the overall project timeline.”

It added that “exceptional market receptivity” to the project meant that “strong end-unit sales … can be assumed.”

The project’s buildable square footage exceeds a million square feet, with 822 residential units averaging 750 square feet and approximately 200,000 square feet of office and retail space.

Alderbridge acquired the property in 2017 from UEM Sunrise (Canada) Alderbridge Ltd. through a numbered subsidiary for $113 million. It initiated construction in 2019 with plans for an office tower and 824 residential units in six towers. Five towers were to be sold as condos while one tower would have 112 market rental units and 38 affordable rental units.

A portion of the project was to have been purchased by Global Education City (Richmond) LP, an affiliate of CIBT Education Group Inc., for school facilities and student housing.

Court documents indicate that 288 of the residential units in the development sold following the project’s launch in 2019.

But court documents indicate that construction halted in September 2020 following challenges to secure construction financing during the early months of the pandemic. An initial effort by Cushman & Wakefield to sell the property in 2021 in early 2022 without a deal.

With obligations totaling $346.1 million, the project sought protection from creditors under the Companies Creditors Arrangement Act on April 1.

 

© 2023 Western Investor

Natural resources minister defends plan to transition to green economy

Sheena Goodyear
CMP

Natural Resources Minister Jonathan Wilkinson has announced new legislation will be coming this year to help transition oil and gas workers into green jobs. (Mike Sudoma/The Canadian Press)

As It Happens6:50Natural resources minister defends plan to transition to green economy

Canada’s biggest challenge going forward won’t be job losses in the oilpatch, says Natural Resources Minister Jonathan Wilkinson. It will be filling all the new jobs in the green economy.

Wilkinson has announced that new legislation will be coming this year to help workers in carbon-intensive industries move into jobs such as building retrofitting, carbon capture, and the mining and processing of critical minerals used in computers and green technology.

The details of the plan have not yet been released. But Alberta — the heart of Canada’s oil and gas industry — is already pushing back. Both Premier Danielle Smith and provincial Environment Minister Sonya Savage have accused the federal government of jeopardizing Albertans’ livelihoods.

Here is part of Wilkinson’s conversation with As It Happens host Nil Köksal.

Minister Wilkinson, what’s your message for energy workers who are getting anxious as they wait to see what is in your “just transition” legislation?

I’m not a big fan of the words “just transition.” I actually prefer to talk about this as sustainable jobs.

Ultimately, what we are focused on is ensuring that we’re building an economy that’s going to create good jobs, well-paying jobs and economic opportunity in every province.

Alberta Premier Danielle Smith tweeted this week that your government’s “ill-conceived and short-sighted plan is extremely harmful to the hundreds of thousands of Canadians who are supported by the energy sector and will be detrimental to Canada’s economic recovery.” What would you say to Premier Smith?

I think it’s important for her to understand what the bill is and what the action plan is and what it’s not. And I want to give Premier Smith her due credit in the sense that she’s relatively new, so she hasn’t been part of some of the conversations on this that have been going on for some time.

But this is not about doing something to Alberta. This is about actually working with Alberta. We want to partner with Alberta in the context of talking about the opportunities going forward. 

Those are the opportunities for the conventional energy sector. But there are also opportunities for other sectors of the economy that actually are going to be huge opportunities —  like critical minerals in and the processing of critical minerals.

Certainly, we’re interested in Canada continuing to play a role as a provider of conventional energy products, but those need to be in the context of reducing emissions. And we want to work with Alberta on: How do we reduce emissions so that the products that we sell as we move through this transition are the lowest carbon products that exist anywhere on the planet?

That’s good for Alberta. That’s good for Canada. That’s good for the world.

Alberta, though, is apparently not at the table … so what are Alberta energy workers supposed to take away from that? Why isn’t Alberta part of these negotiations?

We did actually go through quite an extensive series of consultations as we started to move towards developing this legislation and this action plan. It very much included companies in the energy sector. It very much included the labour unions in Alberta. And it did include the government of Alberta, where there were discussions between officials over the course of the past couple of years.

I do think there is enormous scope for collaborative work here. 

Alberta’s Environment Minister Sonya Savage … [tweeted]: “This bill will phase out hundreds of thousands of direct and indirect jobs in the energy sector. This should be of concern not just here in Alberta, but across the country.” What’s the disconnect here? Because how they are seeing what your plan is and what you’re saying are very far apart.

I think that there are ways in which we can move forward collaboratively. I think we need to be thoughtful about how we are using terminology. I think the … words around “just transition” are a bit of a loaded term for people in Alberta and Saskatchewan. I grew up in Saskatchewan. I’m certainly sensitive to that.

It’s one of the reasons why I prefer to talk about all of this as sustainable jobs. This is about ensuring prosperity and ensuring place-based prosperity because the opportunities that are available in Nova Scotia are different from those that are available in Alberta. And we need to be working collaboratively with the government, with labour, with industry and others to ensure that we’re actually making the appropriate steps forward.

 

Alberta Premier Danielle Smith says Wilkinson’s plan is ‘ill-conceived and ‘short-sighted.’ (Jason Franson/The Canadian Press)

You told our CBC News colleagues that if you have a concern, you’re concerned that “there are so many opportunities” that will be coming through this with this plan that “we will not have enough workers to fill the jobs.” I wonder if you’re concerned that you’re over-promising [or] overselling here?

I actually don’t. I am very optimistic. And I think if you step back and you think about some of these opportunities — so you think about critical minerals, for example — you cannot have an energy transition without significantly augmenting the amount of critical minerals being produced and processed in Canada and in other jurisdictions around the world. That is going to create enormous numbers of jobs.

Even work that we are doing with respect to just improving energy efficiency … about 70 per cent of the buildings that are standing today are going to go through a deep retrofit if we’re actually going to achieve net zero by 2050. That’s going to drive enormous jobs.

If you step back and you think through all of the different opportunities for Canada, they are big. If you are somebody who got to choose where you were going to live based on economic prospects in most places, you would choose Canada.

What kinds of jobs will come with this plan?

It is different in different parts of the country. But if you think about Alberta, certainly there are enormous jobs in carbon capture and sequestration, if we are focused on reducing emissions from the energy sector.

There are jobs in critical minerals and minerals processing, which heretofore has been done largely in China, which obviously cannot continue given the strategic nature of that.

There are going to be enormous construction jobs in building up the electricity grid, including small modular reactors in Alberta.

There are jobs in the biofuels sector. There’s enormous opportunity in hydrogen, both for domestic use and for export.

If you go to the East Coast, I mean, one of the big areas that both Nova Scotia and Newfoundland are extremely interested in is offshore wind for the purpose of producing hydrogen to provide to Europe.

I honestly am of the view that — particularly given some of the demographic challenges that Canada is facing on a go-forward basis — that our issue is not going to be that we have people for whom there are no jobs. 

It is going to be that there are so many different opportunities that we are not necessarily going to be able to pursue them all as a country because of limitations on labour. And we’re going to have to be very, very thoughtful about that.

 

©2023 CBC/Radio-Canada. All rights reserved.

Canadian economy sees December jobs surge

Fergal McAlinden
CMP

The unemployment rate ticked downwards for the third time in four months
Canada’s economy saw 104,000 jobs added in December and a slight fall in the unemployment rate to 5.0%, according to new figures from the country’s national statistics agency.
An increase in full-time work helped drive that trend, which means the unemployment rate has now fallen for the third time in four months and hovers close to the 4.9% record low it hit in June and July 2022.
At 5.1%, yearly wage growth was above the 5.0% mark for the seventh month in a row, while the number of employees in the private sector ticked upwards and public sector employment remained steady.
The employment rate among women aged between 25 and 54 hit a new record high in December, according to StatCan, with employment among youth aged 15 to 24 also rising last month as job losses in recent months were reversed.
A spike in inflation in recent times has been caused in part by a tight labour market across the country, according to the Bank of Canada, with the central bank set to reveal near the end of January whether it intends to raise its interest rate again in a further effort to cool the economy.
A bombshell November StatCan report showed that the Canadian economy had added 108,000 jobs in October, 10 times higher than analysts had predicted in an indicator that the labour market remained resilient in the face of rate hikes.
That was followed by more modest figures for November, with the addition of 10,000 jobs in that month 
seeing the unemployment rate tick downwards to 5.1%.

Copyright © 1996-2023 KM Business Information Canada Ltd.