Fort Mcmurray 2016 Wildfire ECONOMIC IMPACT

Fort McMurray 2016 Wildfire ECONOMIC IMPACT

DID YOU KNOW?

There are 71,589 residents 14.6% of the national The 2016 Fort McMurray wildfire Approximately 8% of all in this area and 30,713 workforce in the oil and gas burned 5,890 km2 of land, private dwellings in this area private dwellings.1 extraction industry work this is about the size of were destroyed by the fire.4 in this area.2 Prince Edward Island.3

IMPACT ON HOURS WORKED5,6

TOTAL WORK HOURS LOST IN TOTAL WORK HOURS GAINED IN ALBERTA, FORT McMURRAY AREA EXCLUDING FORT McMURRAY AREA

Natural resources* Public administration Construction Natural resources* Wholesale and retail trade Transportation and warehousing May May/June combined June Sector Sector Accommodation and food services Manufacturing Health care and social assistance Construction All other sectors All other sectors 0 1,000 2,000 0 100 200 300 400 500 600 Thousands of hours Thousands of hours

Note: *Natural resources are also referred to as forestry, fishing, mining, quarrying, and oil and gas extraction.

THE WILDFIRE IMPACT ON NATIONAL BUILDING PERMIT INCREASES SIGNAL GROSS DOMESTIC PRODUCT (GDP) REBUILDING FOR THE AREA10

350 $70,000

Residential Building ESTIMATED 300 $60,000 DECLINED Permits – Wood Buffalo

-0.4% Thousands of dollars 20% 250 Number of permits $50,000

200 Value of permits $40,000

An estimated -0.4% impact Real GDP in the 150 $30,000

on real GDP in the second non-conventional oil extraction Number of permits quarter of 2016.7 industry declined 20% in May.8 100 $20,000 50 $10,000

EXPORTS9 0 $

Oct-15 Aug-16 Exports of energy products Q2 2016 Q3 2016 Dec-15 Feb-16 Apr-16 Jun-16 Oct-16 Dec-16 Building permit data Since June 2016, over 854 building Crude oil and crude bitumen -7.0% +5.0% are widely used as a permits have been issued which leading indicator for the signals rebuilding for the Refined energy products -16.4% +8.7% construction industry. affected households.

THE FORT McMURRAY WILDFIRE WAS THE MOST EXPENSIVE NATURAL DISASTER IN CANADIAN HISTORY FOR INSURANCE PROVIDERS.11

1998 Quebec ice storm $2.2 billion 2005 Toronto rains $740 million This fire ranks as the most expensive 2011 Alberta Slave Lake fire $780 million natural disaster in Canadian history 2013 Power outages in Southern Ontario, Eastern Canada $1.7 billion with estimated insured losses nearly double 2013 Alberta flooding $1.9 billion that of the recent 2013 floods in Calgary. 2014 Alberta hailstorms $575 million Highest insured losses Highest insured for disasters in Canada 2016 Fort McMurray wildfire $3.7 billion Figures expressed in constant 2015 dollars

SOURCES: 1) 2016 Census of Population (3901), Regional Municipality of Wood Buffalo 2) 2011 National Household Survey (5178) special tabulation, Regional Municipality of Wood Buffalo 3) Statistics Canada (Agriculture Division) special tabulation 4) 2016 Census of Population (3901) special tabulation, Regional Municipality of Wood Buffalo 5) Labour Force Survey (3701) 6) The Fort McMurray area refers to the census agglomeration (CA) of Wood Buffalo 7) National Gross Domestic Product by Income and by Expenditure Accounts (1901) special tabulation 8) Gross Domestic Product by Industry – National (Monthly) (GDP) (1301) 9) Canadian International Merchandise Trade (2202) 10) Building Permits Survey (2802) special tabulation, Regional Municipality of Wood Buffalo 11) Insurance Bureau of Canada and Conference Board of Canada

Fort McMurray 2016 Wildfire – Economic Impact. Catalogue number: 11-627-M ISBN: 978-0-660-07769-7