Issue

Alberta is experiencing labour shortages in different industry sectors which are adversely impacting businesses and the overall economy by limiting operations and growth. The federal government should increase Canada’s Worker Benefit Tax Credit and the provincial government should implement an Alberta tax credit to encourage lower-income individuals in the workforce.

Background

Alberta is experiencing labour shortages across a variety of different industry sectors. In 2023 Q3, Alberta had a 4.1% Job Vacancy rate with the highest level of job vacancy in accommodation and food services (8.3%) and construction (6.7%). Individuals who are not currently present in the workforce could be further incentivized by increasing Canada’s Worker Benefit Tax Credit and implementing an Alberta tax credit that would cover more of the expenses incurred to go to work.

The Canadian government explains that “The Canada Workers Benefit is a refundable tax credit to help people and families who are working and earning a low income. It is a sizeable tax refund for workers".  However, the maximum tax credit provided to individuals making between $32,244 (single Canadians without children) is $1,400 and $56,197 (double-earner families) is $2,400.  These amounts should be increased to reflect the rising costs that individuals are facing.

Recommendations

The Alberta Chambers of Commerce recommends the Government of Alberta:

1. Remove barriers for individuals to enter the workforce to help alleviate the current labour shortage crisis by:

  1.  Implementing an annual earnings Workers Benefit exemption to address the rising cost of living in Alberta.

The Alberta Chambers of Commerce recommends the Government of Canada:

1. Remove barriers for individuals entering the workforce to help alleviate the current labour shortage crisis by:

  1. Increasing the current annual earnings exemption limit to address the rising cost of living in Canada.

 

Download The Policy Brief
Topic
Year

2024

Contact

If you have any questions, contact Dana Severson at dseverson@abchamber.ca or (780) 425-4180 ext. 2.