By Jason Foster, AFL Staff

An economic analysis recently completed by the Alberta Federation of Labour gives the Alberta government a reality check about the state of the Alberta economy. Since September 11, Premier Ralph Klein has set off alarm bells, warning that the Alberta economy is in for a period of great difficulty.

The AFL analysis puts the Premier’s claims to the test, and he fails.

The analysis paper concludes: "Alberta appears to be in the enviable position of weathering what could well be a difficult storm for the rest of Canada. It also should waken Albertans to not be scare-mongered into believing budget cuts in our province are necessary."

The AFL analysis, which included a survey of Alberta unions and an assessment of the latest economic figures, finds that Alberta will experience a slight drop in its economic growth next year, in comparison to the past year. Growth will remain, however, relatively healthy at 3%. Growth in 2001 is a booming 4.1%.

"The government has announced $1.6 billion in cuts and a hiring freeze," says AFL President Les Steel. "There is no evidence for this kind of chicken-little exaggerations."

The analysis takes an early reading on the effects of the September 11 terrorist attacks. Some sectors, such as the airline industry and tourism, are being hit hard, but most sectors are continuing on a healthy pace, the analysis finds.

"The eyes and ears of union representatives suggest nothing dramatic or shocking is to arise." Most unions report no rumours or plans of layoffs or staff reductions.

"We should not forget the hard news affecting our brothers and sisters in the airline industry. Hundreds of airline workers in Alberta will be losing their jobs," says Steel. "But we should also not be fooled by a Premier searching for the thinnest of excuses to cut more from health care, education and other people services."