03/22/2013 04:05 EDT | Updated 05/22/2013 05:12 EDT

Federal Budget 2013: Alberta Embraces Skills Training Plan

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MIAMI BEACH, FL - JANUARY 06: Pipefitter, Steve Andres, who was recently hired by Cool-Breeze Air Conditioning measures out a pipe to be cut as he works on installing an air conditioner in a hotel on January 6, 2012 in Miami Beach, Florida. The most recent jobs report for the month of December indicated that 200,000 new jobs were created in the month, and the unemployment rate dropped to 8.5 percent. (Photo by Joe Raedle/Getty Images)
CALGARY - Alberta business groups say a rejigged skills training program included in the most recent federal budget could offer some relief for the province's tight labour market.

Travis Davies of the Canadian Association of Petroleum Producers says connecting the right workers with the right jobs is a "huge challenge" in the oilpatch, where skilled tradespeople such as pipefitters and plumbers are in high demand.

"To the degree that you can get support from both the federal government and the provincial government, it's very positive," he said.

Finance Minister Jim Flaherty made skills training a centrepiece of the 2013-14 budget with the Canada Job Grant. Ottawa, provincial governments and employers would each shoulder a third of the $15,000 training grant, which is expected to come into effect about a year from now.

Ottawa still needs to get the provinces on side with the plan, and Quebec and Ontario have already expressed misgivings.

But in the West, where unemployment rates are very low, the idea is being embraced.

Ben Brunnen, chief economist at the Calgary Chamber of Commerce, called the job grant a "great first step" that is "key to helping to alleviate the labour challenges."

"What that does is it ensures that the provinces and the federal government and employers get together at the same table to make sure they get the right people with the right skills in the right job."

The labour tightness is not restricted to Alberta's all-important oil and gas industry, Brunnen said. The tourism and hospitality industries, for instance, are also having a tough time.

"It definitely permeates across the Alberta economy," he said. "There are particular occupations under pressure in Alberta that are confronted with relatively chronic shortages and increasingly employers have been focusing on overseas and immigrants as solutions to the labour challenges."

Brunnen said the Chamber also likes that there will be more of a focus on attracting talent within Canada than from overseas.

"That's been the big issue for employers — yes, there might be some Canadians that are unemployed but they just don't have the skills that we're looking for."

However, there are challenges in attracting workers to Alberta that don't have to do with training, Brunnen conceded.

"A lot of the demand for the energy sector is happening in the field, in the oilpatch. Those are in locations that are sometimes a little bit difficult to work in, or are sometimes a little bit remote."

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