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2.2 Weaknesses Weaknesses are factors that place Red Deer at a disadvantage relative to others. 2.2.1
Potential Economic Volatility
Red Deer’s economy is strongly tied to commodity prices, which though strong now are prone to booms and busts. In the chart below we track employment figures from the Labour Force Survey from 2006 to 2012. Manufacturing, construction and resource extraction provide nearly 25% of employment in Red Deer and we can see the dramatic swings in the numbers employed. Though it is important to note that the Global Financial Crisis of 2008 and 2009 likely played a significant role in these shifts, it cannot be ignored that these three key industries can easily gain or lose 1,000 jobs or more in a short period of time. Though gaining and losing jobs as well, the Services sectors were significantly less volatile over the same time period.
Goods Sector Employment in Red Deer - 2006-2012 6000
Persons Employed
5500 5000 4500 4000 3500 3000 2500 2006
2007
2008 Manufacturing
2009 Construction
2010 Resource Extraction
Figure 11: Goods Sector Employment in Red Deer: 2006-2012 Sources: Statistics Canada Labour Force Survey; Conference Board of Canada
2011
2012