The latest job numbers released by Statistics Canada show a city in Alberta has the highest unemployment rate of any major Canadian city.
According to the January report, Red Deer tops the list with the unemployment rate sitting at 9.7 per cent. That’s down slightly by 10 per cent from December.
Meanwhile, in the province’s two largest cities, unemployment rates stayed steady.
The report shows Edmonton hit 7.2 per cent in January – down 0.3 per cent from December.
Calgary shows a more noticeable change dropping to 7.7 per cent in January from 8.1 per cent in December.
All three cities are above the national average of 6.6 per cent.
The Alberta NDP responded to the data by criticizing the provincial government.
“It all just continues to show how ineffective this UCP government is at meeting the needs of Albertans who continue to struggle,” Rhiannon Hoyle, Alberta NDP Shadow Minister for Jobs, Economy and Trade said in a statement.
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“Instead of doing what’s right and focusing on the issues important to Albertans, Danielle Smith’s self-serving government won’t combat the rising cost of living many are facing.”
However, the Alberta government said there are other contributions to high unemployment rates in the province, calling it “the economic engine of Canada.”
Matt Jones, minister of Jobs, Economy and Trade Alberta, said the province’s population growth and a shift in the job market have played factors.
“In rapidly growing cities, higher unemployment is expected temporarily as new workers find work in their new home,” Jones said.
“Our major metropolitan areas across Alberta are also undergoing a shift from traditional industries like manufacturing and agriculture to sectors such as professional services and technology. This transition can lead to temporary employment gaps as the workforce adapts. Certain industries experience seasonal fluctuations, affecting employment levels. For instance, construction and agriculture may see reduced activity during colder months, impacting overall employment rates,” he continued.
Despite Red Deer’s high unemployment rate, the minister adds that Red Deer’s economy is going strong, pointing to the Municipality of Red Deer’s most recent Economic Report Card, as well as Statistics Canada’s Labour Force Survey (LFS).
“Based on LFS data, the labour force in Red Deer has grown by 5.8 per cent over the last 12 months, the second fastest among CMAs in Alberta after Calgary (+7.9 per cent). However, the employment growth at three per cent, has not kept pace with labour force growth in the same period – resulting in an increase of the unemployment rate,” Jones explained.
The province adds it’s working to ensure unemployed Albertans have access to supports and training programs.
Concordia University economist Moshe Lander agreed with some of the provincial government’s response, saying it’s less about losing jobs and more about a growing population.
“It’s more a matter of people that are moving without necessarily a job in hand when they arrive – technically become classified as unemployed,” Lander explained.
“Are there jobs and I need people to fill it? Or are there people that show up and I need jobs to absorb them. Right now Alberta is going through the latter not the former.”
Lander believes the threat of tariffs coming from the United States could drive up concern for businesses.
“It’s entirely possible that businesses start shedding jobs. You can imagine that the oil and gas companies would start laying off workers. Because even if only 10 per cent tariffs are applied and not 25 per cent, it’s still going hit those businesses,” Lander said.
Lethbridge was the only other Alberta city listed in the report, hitting an unemployment rate significantly lower than the other three cities, at 5.2 per cent.
