Alberta's unemployment rate inched up to seven per cent in June, even as the national job market showed signs of stabilization, according to Statistics Canada's latest Labour Force Survey. The province's jobless rate rose by 0.1 percentage points from the previous month, bucking the nationwide trend of employment growth.
National Context
Across Canada, the economy added 12,000 jobs in June, bringing the national unemployment rate down to 5.8 per cent. The gains were driven by increases in full-time employment, particularly in the goods-producing sector. However, Alberta's energy-dependent economy continued to face headwinds, with the province's unemployment rate remaining above the national average.
Statistics Canada reported that Alberta's employment rate fell slightly, as the province's labour force grew faster than the number of jobs. The construction and natural resources sectors, key drivers of the provincial economy, saw modest declines in employment.
Impact on Workers
“While the national picture is improving, Alberta is still feeling the effects of a slower recovery in the energy sector,” said a labour economist quoted in the survey. The province's unemployment rate has hovered around seven per cent for the past three months, reflecting ongoing challenges in diversifying the economy beyond oil and gas.
Job seekers in Calgary and Edmonton have faced increased competition, with the number of unemployed persons rising by 5,000 in June compared to May. The construction sector shed 2,000 jobs, while natural resources lost 1,500 positions. These losses were partially offset by gains in professional services and healthcare.
Comparison with Other Provinces
Other resource-rich provinces also experienced mixed results. Saskatchewan's unemployment rate held steady at 5.5 per cent, while Newfoundland and Labrador saw a slight increase to 10.2 per cent. Ontario and British Columbia continued to outperform, with unemployment rates of 5.4 per cent and 5.1 per cent, respectively.
The national job market has shown resilience in the face of global economic uncertainty, with employment levels rising by 0.1 per cent in June. However, Alberta's reliance on volatile commodity prices continues to weigh on its labour market.
Outlook
Economists predict that Alberta's unemployment rate may remain elevated in the coming months, as the province grapples with a slowdown in investment and a shift toward renewable energy. The federal government has announced new initiatives to support workers in transitioning industries, but their impact on Alberta's job market remains to be seen.
