WINNIPEG is one of the best economic performers in Canada, according to a recent report by the Canadian Imperial Bank of Commerce.
The report, called Canadian Cities: An Economic Snapshot, looked at 25 major urban centres in Canada and assessed their economic performance. Toronto was ranked at the top, but Winnipeg was not far behind at No. 3.
The reasons listed for our city's high ranking included strong population growth, above-average employment gains, low unemployment rates, low consumer and business bankruptcy rates and a strong housing market.
A quick review of some charts shows that Winnipeg ranks sixth in terms of population growth over the past year, attributed to aggressive immigration policies and the desire of many who once moved away to return home.
Our unemployment rate is the absolute lowest in all of Canada, with jobs waiting to be filled. Our consumer and business bankruptcy rates are both the fourth-lowest in Canada, MLS unit sales and average prices continue to rise, while new-home starts remain consistently good.
There's also a strong correlation to the residential construction industry, which is responsible for 14,200 jobs in Winnipeg and facing an imminent shortfall of thousands more. On numerous occasions, we've cited the need for new entrants into the construction industry. Our population growth has resulted in a need for housing of all sorts, from government-initiated social housing to rental, resale new-home construction.
Our city's lack of rental units and extreme seller's market for resale housing are strong indicators for entry-level housing demand. Our strong new-home market and subdivision growth suggest a great number of people want a new home in a new neighbourhood. The extremely low bankruptcy rate further promotes consumer confidence.
When we talk about an economic snapshot of Winnipeg, we're also talking about an economic snapshot of the residential construction industry. One is a reflection of the other. When one grows and prospers, the other moves with it.
We have much to be proud of in Winnipeg, and this 'good news' report gives us additional reason.
Mike Moore is president of the Manitoba Home Builders' Association.
