AB Oil Industry Today: Better Off than ON Automakers in ’09

auto sectorA federal government memo says Ontario’s auto manufacturing sector underwent a much more severe economic crisis in 2009 than the one currently afflicting Alberta’s energy industry, according to a recent CBC article.

The memo was prepared for Labour Minister MaryAnn Mihychuk and compared how significantly the two industries were impacted by their respective economic woes. Although Alberta energy firms have not sought federal assistance like the Ontario automakers did, some commentators have suggested the government should do more to help the industry through the current oil and gas market depression.

This news follows a recent Globe and Mail opinion piece titled “How to stop Calgary from becoming the next Detroit” that presented the decades-long collapse of Motor City’s auto sector as a cautionary tale for Alberta’s oil and gas industry.

In its analysis, the memo noted that the unemployment rate in Alberta’s oil industry approached 8% in 2015, while the rate in Ontario’s auto sector reached almost 22% in 2009. It also discussed the relative probability of jobs leaving Canada in the two industries, concluding that because oil and gas production is geographically tied to Alberta, there was less chance of energy firms moving jobs abroad.

To read more about the memo, see this article on the CBC news website.

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