IBM pledges 250 new jobs in N.B., with a focus on recent university grads

IBM Canada says it will create 250 jobs in New Brunswick starting next year when it opens what the tech giant calls a "client innovation centre" in Fredericton — a project that is being backed by taxpayer dollars.

Opportunities New Brunswick, a provincial government organization that works with businesses across New Brunswick, is footing part of the bill, paying IBM up to $4.8 million for the project.

The centre, the company's fifth in Canada, will offer consulting services in the design, construction, testing and operation of technology, including artificial intelligence, app development and cloud computing, an IBM official said.

Sheldon Miller, IBM's Atlantic region partner, said the company expects to find a lot of the workforce among recent university graduates.

"Young professionals and campus hires come from a wide variety of backgrounds, whether that be business or technology programs, arts or sciences, health — it really is quite a wide range of backgrounds that we hire from," said Miller.

12 weeks of training

IBM already operates a security lab on Bishop Drive, which will serve as the initial home for the centre, said Miller.

"Early days right now is we're now focusing on getting the centre operational and beginning to hire," he said.

"But we do expect to outgrow that space in the near future."

The centre will open in January as the first hires begin a 12-week training program.

Miller said IBM chose Fredericton for its new centre because it was looking for a place with strong university and community college programs.

"When we look at jurisdictions where we locate client innovation centres, it's really looking at the pipeline of talent to be able to sustain an organization or enterprise of this scale," he said.

The decision was also made with the knowledge that New Brunswick has two official languages.

Funding in form of 'payroll rebate'

Opportunities New Brunswick did not agree to an interview, but in an email, spokesperson Michel LeBlanc said the project was funded partly to "foster growth in our province."

When asked if the $4.8 million would be used to fund salaries for the jobs, LeBlanc replied, "the centre will contribute to strengthening the province's technology sector and support businesses to accelerate digital transformation through increased access to talent and innovative technologies."

He said the funding is in the form of a "payroll rebate" which is "directly tied to the success of the company in achieving hiring targets."

He said the payments will only be given once the positions have been created and maintained, adding that "this is a very safe investment on behalf of taxpayers."

LeBlanc said New Brunswick local businesses will benefit from the additional disposable income in the economy because of the new jobs. He said these jobs will contribute more than $72 million in gross domestic product over five years, which is calculated through "direct impacts," a model LeBlanc said is tied to Statistics Canada multipliers.

Combination of local, international hires

IBM says it doesn't disclose salary or compensation to the public, "but these are professional, high-value positions."

Miller said while a portion of the workforce will come from local universities and colleges along with other places in the province, he also expects the centre will attract newcomers to New Brunswick, including international students who want to stay in Canada and professionals who just recently arrived.

"When we look at our experience elsewhere, which we fully expect will be our experience in New Brunswick as well, too, there'll be that combination of talent."