The West Coast Boom

n the early years of the new millennium, Canadians have come to recognize that the economic centre of gravity has shifted westward. With its trove of natural resources, Alberta has taken the leading role in this shift. Less prevalent is the realization that BC – the west beyond the west – has enjoyed a similar economic surge in the new century. Indeed, BC has been the only province to keep close to the pace of real output and job growth in Alberta in the last three years.1

This article looks at some of the reasons behind the recent rebound in the BC economy from its doldrums in the 1990s. It also examines how the current boom in BC differs from Alberta and what can be learned from Alberta’s experience.

The strengthening of the BC economy since 2001 has already driven its unemployment rate to a record low, with the prospect of continued job growth as metals prices soar and the 2010 Olympics approach. The strain created by these shortages can only be alleviated in three ways: population growth, higher labour force participation, or better labour productivity. This paper looks at the scope for each of these in turn.