New labor market data from Statistics Canada highlights a puzzling dynamic in Alberta’s economy: while the province continues to add jobs, unemployment is on the rise. The seemingly contradictory trends—job creation alongside a higher jobless rate—are prompting questions about whether Alberta’s employment growth is keeping pace with its booming population.
In August, Alberta’s economy added 12,800 jobs, driven primarily by growth in the services sector, including wholesale and retail trade, real estate, finance, food services, and accommodation. These gains, however, were largely in part-time positions. Despite this job growth, Alberta’s unemployment rate climbed to its highest level since 2017—excluding the COVID-19 pandemic—and now sits behind only Prince Edward Island and Newfoundland and Labrador in the country.
The rise in unemployment is partly explained by Alberta’s significant population growth. As more people move to the province in search of opportunities, the labor market is struggling to absorb the influx of workers.
“We’re just bringing in more people than the economy can absorb,” said Mike Holden, vice-president of the Business Council of Alberta. “There’s a slowing economy factor here that’s also contributing to this rising unemployment.”
Alberta’s economy created about 50,000 jobs over the past year, but the pace of growth has slowed. Higher interest rates and a sluggish national economy have tempered hiring momentum in recent months, according to Charles St-Arnaud, chief economist at Alberta Central.
The employment landscape is further complicated by the types of jobs being created. While gains in the services sector are positive, the prevalence of part-time positions and the slower recovery in higher-paying industries like construction and manufacturing have raised concerns about the quality and sustainability of the new jobs.
As Alberta continues to attract newcomers, its labor market faces mounting pressure to generate enough meaningful employment opportunities. Policymakers and economists are closely watching these trends, recognizing that sustained job creation will be critical to maintaining economic stability in the face of rapid population growth.
For now, Alberta’s economy is navigating a delicate balance: strong employment numbers are a positive signal, but the growing number of job seekers underscores the challenges of managing a surging population amid a cooling economic environment.
