Dirty pool: Raiding labour edition
Back in the McKenna years, other premiers grumbled that the Tiny, Perfect Premier was coming into their backyard and raiding jobs. The Premier of BC was annoyed that McKenna was trying to poach jobs from companies on Team Canada missions.
Twenty-five years later, the Premier of Alberta continues to up that province’s efforts to poach workers from other provinces. An article in the G&M this week says Alberta is boosting its Alberta Calling Attraction Bonus to $5,000 to woo workers - not just trades workers - this includes food services workers and other occupations in high demand.
The data on interprovincial migration by urban centre is lagged but maybe the premier was annoyed on a net basis Calgary and Edmonton were losing workers to Moncton. The data in the chart is based on tax filer data from CRA.
Nova Scotia raiding nurses. Alberta raiding fry cooks. Where does it end?
Rather than poaching scarce workers with cash, provinces should have better plans for workforce development. This necessarily will include interprovincial migration. The free mobility of labour within Canada is a feature not a bug. If firms want to pay people to relocate that is one thing. For provincial governments to raid scarce talent? That’s another.
This could escalate further into all out bidding wars where taxpayer dollars are expended to worsen labour market conditions in the ‘loser’ areas.
This reinforces the urgent need for tax reform in Canada. While I don't oppose Alberta's initiative to attract workers, it underscores the pressing need for federal tax reform, particularly regarding income tax. Provinces have the authority to levy taxes, but wielding taxation as a tool is concerning.