Download The Manitoba Chambers of Commerce, established in 1931, is the

The Manitoba Chambers of Commerce, established in 1931, is the umbrella organization for
Manitoba’s chamber movement. With a membership comprised of Local Chambers of
Commerce as well direct Corporate Members, the Manitoba Chambers of Commerce is
Manitoba’s largest and most diverse business lobby, representing over 10,000 businesses and
community leaders.
Our Mission is similar to that of many organizations in Manitoba, namely, to foster a dynamic
economy and vibrant communities, making Manitoba the best place in which to live, work,
invest and raise a family. What sets us apart is our Vision, which describes the Manitoba we are
working to achieve.
Provincial Budget
The Manitoba Chamber of Commerce believes that for Manitoba to achieve the level of
prosperity needed to take the Manitoba economy to the next level the provincial government
needs to increase its focus in the budgeting process to ensure economic growth is the driving
force behind decisions that are made.
The Chamber believes that there are a number of key economic indicators that the provincial
government should take into consideration when making decisions in regards to their 2014
Budget deliberations.
During their budgetary process The Chamber would urge the government to ask itself whether
those decisions positively influence the following economic indicators.
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Average weekly wages
Labour force growth – Public and Private
Number of head offices in Manitoba
Interprovincial Migration
Provincial Government Spending
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Debt indicator
Entrepreneurial Intensity
GDP per capita
The Chamber believes that if Provincial Budget 2014 is focused on increasing economic
opportunities and prosperity in the province these indicators will be positively influenced.
When looking at factors that play into the Manitoba’s Economy, the Manitoba Chambers of
Commerce looks at indicators from those affected. The 2013 Prosperity Report lays out some
numbers that should be taken into account when planning strategies for how the government
should be spending our money. During their budgetary process, the government should ask
itself whether those decisions positively influence the following economic indicators:
Average Weekly Wages
Average weekly earnings show the financial return from paid employment and are viewed as an
important measure of the quality of paid employment as well as an indicator of well-being
within the highlighted jurisdiction.
From 2000 to 2012, all jurisdictions have shown increases to their respective average weekly
earnings, from a high of 65 per cent in Alberta to a low of 31 per cent in Ontario.
In Manitoba, average weekly earnings have increased $258 or 44 per cent in the last decade.
Manitoba remains, when compared to the previous Prosperity Report, in third place in terms of
percentage increase. Unfortunately, Manitoba remains in last place among the five provinces
every year.
As well, Manitoba’s average weekly earnings gap (the difference between 5th and 4th place)
continues to grow, from a $2.00 difference with Saskatchewan in 2000 to a $36.00 difference
with BC in 2012.
In 2000, the average Manitoba made $584 a week while someone in Saskatchewan made $586
– basically even. Last year the average Manitoban made $842 a week while that same person in
Saskatchewan now makes $936 – a difference of almost $100 – over the course of a year that’s
a $5000 difference.
Labour Force Growth
A province’s labour force is the total number of all the employed (persons having a job or
business) and the unemployed (persons currently without work, available to work and seeking
work).
With the continuing growth in the Alberta economy, it is not surprising that their labour force
growth of 542,000 or 32 per cent leads the provinces.
Manitoba’s labour force has grown by 80,000 or 14 per cent, but is the lowest growth rate
among the reviewed provinces. Saskatchewan is at 15 per cent and BC at per cent
Number of Head Offices
The Financial Post’s FP500 offers a picture of Canada’s largest 500 corporations, along with the
next 300 largest. Included are both privately held and publicly traded companies as well as
Crown Corporations. The FP rankings are based on annual revenues.
According to the most recent data, Manitoba is home to 15 of the top 500 companies in
Canada, down from 18 in 2000.
Manitoba’s growth in the top 800 has been driven exclusively by the increase in the ‘next 300’
category where it was 9 in 2000 and 14 in 2011.
Overall, Manitoba accounts for 29 of the 800 largest corporations in Canada, 4 per cent, up
from 27 in 2000. The majority of FP 800 corporations are located in Ontario, followed by
Alberta, BC, Manitoba and Saskatchewan.
Manitoba has seen a seven per cent increase in the number of Canadian corporate head offices
since 2000, below Alberta’s 71 per cent increase and BC’s 28 per cent increase. It is higher than
Ontario’s two per cent increase or Saskatchewan’s zero increase.
Interprovincial Migration
Net interprovincial migration represents the number of individuals who have either immigrated
or emigrated from another province.
From 2000 to 2012, Manitoba witnessed a net loss of approximately 56,000 persons through
interprovincial migration. Other provinces, excluding Alberta, showed decreases, both annually
and for the total timeframe, but only Manitoba posted a loss each of the ten years reviewed.
Manitoba’s losses range from a low of 2,514 people in 2009 to a high of 9,298 people in 2005.
Manitoba is the only province that saw net interprovincial out-migration each year during the
last 12 years while Alberta is the only province that saw net interprovincial in-migration.
Debt and Deficits
Since the global economic slowdown of 2008/09, a number of jurisdictions have seen slower
than anticipated revenue growth and in several instances have begun running deficits in an
effort to maintain spending levels.
Summary net debt is a government’s financial assets minus total liabilities with the remaining
liability requiring financing by future revenues. It is also an important measure utilized by credit
rating agencies. Manitoba’s net debt to GDP ratio had been on a downward trend from 29 per
cent in 2000 to 21.6 per cent in 2007. This began to climb upwards to the current estimate of
27.3 per cent.
As in 2000, Manitoba today has the second highest net debt to GDP ratio with only Ontario
higher. Alberta’s ratio of five per cent is the lowest, but the most significant change is that of
Saskatchewan’s which saw its ratio decrease from 20.7 per cent in 2000 to a current estimate of
five per cent.
While debt is a measurement of a government’s total liability, deficits measure a government’s
annual shortfall in terms of achieving a balanced budget and accumulate to become debt.
Only one province, Saskatchewan, has shown a consistent surplus during the reviewed
timeframe. Manitoba showed a surplus in eight of the 13 years. It is currently projected to show
a deficit equal to one per cent of GDP, better than either Alberta or Ontario.
Entrepreneurial Intensity
One measure of entrepreneurial intensity can be achieved by reviewing the number of
businesses per 1,000 population within a province.
In 2000, Manitoba’s entrepreneurial intensity was 62.9, second lowest among the provinces.
By 2011, all provinces excluding Manitoba saw an increase, albeit in some instances minimal.
Manitoba saw a decline from 62.9 businesses per 1,000 population in 2000 to 62 in 2011.
In 2011, the average among the provinces was 77.4 businesses per 1,000 population.
Gross Domestic Product (GDP) per Capita
GDP per capita takes a jurisdiction’s GDP divided by its total population. It is considered of
value when comparing one jurisdiction to another because it shows the relative performance of
the jurisdiction. An increase in per capita GDP indicates economic growth and tends to show as
a corresponding increase in productivity.
Manitoba’s GDP per capita has, since 2000, increased from $31,123 to $35,435. While this
increase of 14 per cent is higher than BC’s 12 per cent and Ontario’s two per cent increases,
Manitoba remained in last place among the provinces each year reviewed.
Recommendations
The Manitoba Chambers of Commerce remain committed advocates for developing a quality of
life that will make Manitoba THE place to call home. Over the past year, our organization has
addressed issues of concern to the government and put things on the radar for consideration
for Budget 2014.
As the government prepare for Budget 2014, the Manitoba Chambers of Commerce ask that
particular focus be given on the following economic indicators in their budgeting process:
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Ensure Manitoba’s GDP per capita is competitive with other Western provinces.
Contain annual increases in program spending to two-to-three percent (in line with
inflation plus population growth).
Have Manitoba’s annual spending as a percentage of GDP level among the top three
most competitive when compared with other provinces.
Ensure Manitoba’s annual Labour force growth is competitive with other Western
provinces.
Have Manitoba’s weekly wage rates among the top five most competitive in comparison
with other provinces.
Annually have a positive interprovincial migration number.
Increase the number of businesses in Manitoba by 50% over the next decade.
Double the number of head offices in Manitoba over the next decade.