Prince Rupert Gas Transmission Project
Part B-3 – Assessment of Potential Economic Effects
Application for an Environmental Assessment Certificate
16.0
Section 16
Economic Background
ECONOMIC BACKGROUND
The economic characteristics of the urban, rural and Aboriginal communities along
the pipeline route, compressor stations and areas neighboring the route are highly
variable, reflecting distinct differences in topography, land use, resource use and
settlement patterns. Potential social affects that may result from economic changes
(e.g., housing availability and cost) are presented in Section 20 Infrastructure and
Services. Project-related changes in employment are addressed in Section 17
Employment. Project-related economic benefits are described in Section 1.6.
An overview of demographic information related to economic conditions within the
assessment areas is provided below.
The effect related to the economic environment relates to potential project effects on
labour force capacity. The Project will directly and indirectly require labour, goods
and services for construction and operation. Potential Project effects on employment
are the change in labour availability, change in wage rates, change in training
requirements, and change in migration and labour force stability.
To be able to identify potential effects on employment, the local assessment area
(LAA) is described in terms of six sub-regions that correspond to regional district
boundaries and Nisǥa’a lands. In order to include larger communities located outside
the LAA, a regional assessment area (RAA) is identified. The RAA consists of the six
LAA sub-regions as well as three large communities that are situated outside LAA
but have been identified as potential staging communities. These include the Terrace
census agglomeration (CA), the Town of Smithers, and the Prince George CA.
A review of census and National Household Survey (NHS) information published by
Statistics Canada shows that as of 2011, there were 114,295 people aged 15 years or
older in the RAA. Of these, 77,730 were either employed or actively looking for work,
indicating a labour force participation rate of 68.0%. The overall unemployment rate
in the RAA was 10.6%, with 8,215 people looking for work.
A brief summary of baseline employment conditions, based on the current available
information (i.e., 2011), in each LAA sub-region and the three large communities is
provided below and summarized in Table 16-1.
The Peace River sub-region consists of Peace River Regional Electoral Districts
(RDEAs) B and E, the District Municipalities (DMs) of Chetwynd and Hudson’s
Hope and four reserves. It is the second largest sub-region in the LAA in terms of
population and is the only sub-region that grew substantially between 2001 and 2011,
having experienced a 77.8% increase in population. This sub-region is predominantly
rural (65.4% of the population) and has a relatively small percentage of people living
on reserves (6.3%). The Peace River sub-region has the lowest unemployment rate of
all the sub-regions in the LAA. Workers in the sub-region worked more weeks per
year, and had an average income that was 23% higher than the LAA average.
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Section 16
Economic Background
Prince Rupert Gas Transmission Project
Part B-3 – Assessment of Potential Economic Effects
Application for an Environmental Assessment Certificate
This sub-region has the largest construction workforce in the LAA (545 workers) and
eight new projects valued at $1.98 billion have been proposed for the sub-region.
The Fraser-Fort George sub-region includes Fraser-Fort George RDEA G, the DM of
Mackenzie and the McLeod Lake 1 reserve. It is the second smallest of all the
sub-regions and has 90% of its population in the District of Mackenzie. This subregion experienced the largest population decline since 2001, losing 32.3% of its
population. Despite the population loss, the Fraser-Fort George sub-region had the
highest labour force participation rate, one of the lowest unemployment rates, and
average incomes that were higher than the LAA average. Residents reported working
the second highest number of weeks per year of all the sub-regions. The construction
workforce in this sub-region is relatively small (125 workers) and planned economic
development is limited, with only three small projects being proposed for this
sub-region.
The Bulkley-Nechako sub-region includes Bulkley–Nechako RDEAs C and G, the
Village of Granisle, the DM of Fort St. James and 10 reserves. It is the fourth largest
in terms of population and has a high rural population (40.6%) and the second largest
percentage of people living on reserves (25.7%). The population of this sub-region
has declined by 5.3% since 2011. Economic conditions in the Bulkley-Nechako
sub-region are also relatively poor compared to the other sub-regions, because it had
the second lowest labour force participation rate, the second highest rate of
unemployment, the second lowest average income, and very high reliance on income
from government transfers. Workers in this sub-region tend to work relatively fewer
weeks per year than other sub-regions. Adults in the sub-region have the lowest levels
of educational attainment, with 30.7% not having completed high school. While the
Mt. Milligan mine project will provide an important source of new employment in
this sub-region, planned economic development is limited. This sub-region also has a
relatively small construction workforce (195 people).
The Kitimat-Stikine sub-region includes Kitimat-Stikine RDEAs A and B, the Village
of Hazelton, the DMs of Stewart and New Hazelton and 11 reserves. It is the third
largest sub-region in the LAA in terms of population, and has the highest percentage
of people living on reserves (54.2%) and a relatively high rural population (23.8%).
The number of people living in this sub-region has declined by 12.1% since 2011.
This sub-region has the lowest labour force participation rate, the highest rate of
unemployment, the lowest average income and the highest reliance on income from
government transfers. On average, people who are employed tend to work fewer
weeks per year than elsewhere in the RAA. People in the sub-region have relatively
low levels of educational attainment, with 23.7% not having completed high school.
The largest proposed project in this sub-region is the proposed Kerr-SulphuretsMitchell (KSM) Gold/Copper Mine. Only 135 workers in this sub-region have
experience in the construction industry.
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Prince Rupert Gas Transmission Project
Part B-3 – Assessment of Potential Economic Effects
Application for an Environmental Assessment Certificate
Section 16
Economic Background
Nisǥa’a Lands include the villages of Gingolx, Gitwinksihlkw, Laxgalt'sap, and
New Aiyansh. It is the smallest of all the sub-regions in terms of population and has
experienced 4.9% population growth since 2001. NHS data for 2011 are only
available for two of the communities and this information shows low rates of labour
force participation (50.8%), high rates of unemployment (33.3%) and low levels of
educational attainment (35.4% of adults had not completed high school), Additional
information on economic conditions for Nisǥa’a people was collected as part of
baseline studies for the environmental impact assessment for the Kitsault Mine
Project (Avanti Mining Ltd. 2012). This information pertains to Nisǥa’a people living
on Nisǥa’a Lands as well as Nisǥa’a people living in other communities (Vancouver,
Prince Rupert and Terrace).
The Skeena-Queen Charlotte sub-region, includes Skeena-Queen Charlotte RDEA A,
the City of Prince Rupert, the DM of Port Edward, and two reserves. The SkeenaQueen Charlotte sub-region has the largest population within the LAA and has a
small percentage of population in rural areas or on reserves. While the labor force
participation rate is about the same as the LAA average, this sub-region has higher
than average unemployment. This sub-region accounts for 24% of all construction
workers in the LAA and has the greatest potential for new development projects, with
nine proposed projects valued at $25.0 billion. Average incomes are slightly below
the LAA average and there is slightly higher than average reliance on income from
government transfers. Residents of the Skeena-Queen Charlotte sub-region, have
higher than average educational attainment, with 20.2% of adults aged 25 to 64 not
having completed high school.
The Prince George CA includes the City of Prince George, Fraser-Ft. George RDEAs
A, C D and F, and one reserve. It is the dominant economic community in the RAA.
The CA accounts for 56% of the population of the entire RAA. The population of the
CA has remained relatively constant since 2001, having decreased by only 0.9%.
Both the labour force participation rate and the unemployment rate were slightly
higher than the RAA average. The average income was also higher than the RAA
average. The Prince George CA had the highest level of educational attainment, with
14.1% of the adult population not having completed high school. The CA has the
largest construction workforce in the RAA (3,675 workers); this represents 64% of all
construction workers in the RAA. Nine projects valued at $740 million have been
proposed for in and around Prince George, but businesses in the CA will also support
the development of major projects being constructed in adjacent LAAs.
The Town of Smithers, with 5,404 residents, is relatively small, but also stable,
having decreased in size by 0.2% since 2001. Of the three large communities,
Smithers had the highest labour force participation rates and lowest unemployment
rate. It has the second highest average income, but this was lower than the RAA
average. Smithers has the highest education attainment, with 12.9% of adults aged
25 to 64 not having completed high school. It has a small construction workforce
(290 people). Although there are limited planned economic prospects in the
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Section 16
Economic Background
Prince Rupert Gas Transmission Project
Part B-3 – Assessment of Potential Economic Effects
Application for an Environmental Assessment Certificate
immediate vicinity of Smithers (one project valued at $100 million has been
proposed), businesses in the community will benefit from major projects being
undertaken in the Kitimat-Stikine and Bulkley-Nechako LAAs.
The Terrace CA, which includes the City of Terrace, Kitimat-Stikine RDEA B and
one reserve, is slightly larger than the Skeena-Queen Charlotte LAA. The population
of the CA has declined by 22.1% since 2001. The Terrace CA has a relatively low
labour force participation rate, low average income, and a high reliance on income
from government transfer. Terrace has a low level of education attainment, with 16%
of adults aged 25 to 64 not having completed high school. Its rate of unemployment
(8.0%) was relatively low, however. The CA has a larger construction workforce than
the Skeena-Queen Charlotte LAA, but these workers only represent 7.6% of the
construction workforce in the RAA. Only two projects have been proposed at
locations near the Terrace CA.
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Prince Rupert Gas Transmission Project
Part B-3 – Assessment of Potential Economic Effects
Application for an Environmental Assessment Certificate
Section 16
Economic Background
Table 16-1: Summary of Economic Indicators for the Local Assessment Area and the Regional Assessment Area
Population
Employment
Educational
Attainment
Income
2011
Rural
(%)
Reserves
(%)
Change
2001 to
2011
(%)
Aboriginal
(%)
Participation
Rate
(%)
Unemployment
Rate
(%)
Average
Weeks
Worked in
2010
Construction
Workers
Average
Income
($)
Government
Transfers
(%)
No Certificate
Diploma or
Degree
(%)
Skeena Queen
Charlotte
13,842
0.2
5.5
-14.2
38.3
65.9
14.6
41.2
310
$36,291
15.3
20.2
Nisǥa’a land
1,909
4.9
100.0
50.8
33.3
34.8
10
$18,023
33.9
35.4
Kitimat Stikine
6,486
23.8
54.2
-12.1
66.9
56.8
23.7
38.0
135
$24,710
22.6
23.7
Bulkley Nechako
5,922
40.6
25.7
-5.3
38.9
59.6
17.2
37.6
195
$33,284
14.8
30.7
Fraser Ft George
3,897
8.1
1.9
-32.3
14.0
73.2
8.7
43.7
125
$38,058
11.3
14.8
Peace River
12,720
65.4
6.3
77.8
16.0
72.0
6.3
44.3
545
$45,215
8.9
22.8
LAA TOTAL
44,776
28.2
14.9
-0.6
34.3
65.5
13.5
41.4
1,320
$36,856
13.5
22.4
Prince George CA
84,232
14.5
0.1
-0.9
12.0
69.2
10.0
44.0
3,675
$40,210
11.6
14.1
Smithers
5,404
0
0
-0.2
11.0
71.8
7.8
42.8
290
$37,516
13.0
12.9
Terrace CA
15,569
25.6
0.6
-22.1
21.0
66.1
8.0
43.5
435
$36,985
14.8
16.0
SUB TOTAL
105,205
15.4
0.2
-4.7
13.3
68.9
9.6
43.8
4,400
$39,601
13.8
14.3
TOTAL RAA
149,981
19.2
4.6
4.4
18.8
68.0
10.6
43.3
5,720
$38,929
13.6
16.4
LAA/RAA
Note: Urban includes cities, towns, villages, and regional municipalities. Reported data reflects the data limitations and coverage of the 2011 National Household Survey.
Source: SC 2012; SC 2013a; 2013b
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