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BMO report: 16K jobs to be created in Ottawa in next three years

A new report by BMO Economics finds the next three years will see 16,000 new jobs created in Ottawa.

But even so, growth is expected to remain mostly stagnant.

Robert Kavcic, a senior economist with BMO Capital Markets told CFRA that's because fiscal restraint by the federal government continues to weigh on the capital.

"It sounds like a big number, but in a historical context it's really a little over one per cent growth per year in employment within the city," he said. "That's a little bit slow historically speaking, but obviously better than what we've seen over the past couple of years with a lot of job cuts at the federal government level."

Kavcic did say this time of fiscal restraint is a short-term issue and in the long run Ottawa's outlook is a positive one.

"As we look forward to 2016, because the fiscal situation is improving so rapidly and we're going to be in a surplus position probably by 2015, that'll at least set the stage for the federal government to stop laying off workers and then ultimately start hiring again at a modest pace."

Ottawa will see some growth in the private sector in the next couple of years, particularily in the IT sector, where Cisco Systems is set to creat 1,700 jobs across Ontario. Some of those jobs are expected to be in Kanata.

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