ICBA EconoBot | Ottawa Funds the Pipes. Construction Payrolls Have Not Budged.

TOP STORY

Ottawa Funds the Pipes. Alberta and B.C. Construction Payrolls Have Not Budged in a Year.

Mark Carney and Danielle Smith stood in Red Deer on Wednesday to sign a water, wastewater and stormwater deal worth up to $938 million — more than $510 million federal over eight years, Alberta covering at least a third of eligible project costs, $100 million carved out for rural and Indigenous communities, and a first tranche of projects due for review by November 30 (PMO, BNN Bloomberg). Pipe capacity, not intention, is what caps serviced lots in most Alberta municipalities, so the money is aimed at a real bottleneck. Then look at the western numbers Statistics Canada published this morning: Alberta had 199,520 construction payroll employees in May, up all of 479 jobs — 0.2% — from May 2025. B.C. had 190,321, up 275 jobs, or 0.1%. Nationally, construction payrolls grew 0.8% and construction job vacancies jumped 18.4% in a single month, the largest gain of any sector. The two provinces doing the country’s building have added essentially no construction workers in a year, while public administration payrolls rose for a third straight month. Governments are staffing up faster than they are approving, and $938 million buys nothing without crews, permits and open tendering.

THE NUMBERS — STATISTICS CANADA

Payroll Employment, Earnings and Hours, and Job Vacancies, May 2026 — Released today. Average weekly earnings ran $1,378.85 in Alberta (+1.4% year over year) and $1,354.67 in B.C. (+4.6%), both above the $1,337.77 national figure. Nationally, payroll employment added just 24,100 (+0.1%) and vacancies held at 495,700 for a fifth straight month, with construction (+18.4%) and real estate (+25.0%) the sharpest movers. Statistics Canada

Use of Generative AI Tools Among Canadian Workers, March 2026 — Released today. Just under 36% of workers used generative AI on the job in the past year — 75.1% in management, but only 14.7% in trades, transport and equipment operating. Public sector use (41.2%) outpaced the private sector (33.4%). The productivity gap is opening where the labour shortage already bites. Statistics Canada

WORTH WATCHING

GDP by Industry, May — Tomorrow — Statistics Canada reports May real GDP by industry Friday morning, alongside an early estimate of second-quarter growth. The Bank of Canada is penciling in 2.5% annualized for Q2. Construction’s contribution is the line to watch, given how soft residential has been. Statistics Canada

August 19 Tariff Deadline — Washington has threatened 50% tariffs on a range of Canadian goods if there is no deal, and Carney says everything is on the table for retaliation. BNN Bloomberg

IN BRIEF

Bank of Canada — Summary of Governing Council deliberations, released Wednesday, shows a council confident in the Q2 rebound but openly split on whether it lasts, with some members flagging upward drift in medium-term inflation expectations.

BNN Bloomberg — Officials split over how long the rebound will last. Among the risks the Bank named: businesses failing to adjust to U.S. tariffs, and a housing recovery that stalls on the condo overhang in Toronto and Vancouver.