For the first time in more than 27 years, Alberta’s unemployment rate is higher than the national average.
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Calgary was hit especially hard last month; the unemployment rate rocketed up from 7 per cent to 7.7 per cent. The unemployment rate in Wood Buffalo/Cold Lake, home to most of Alberta’s oilsands projects, rose to 9.0 per cent in January from 8.6 per cent in December and 5.4 per cent a year ago.
Peters reported drilling activity has decreased by 46 per cent year over year since January 1 and is tracking at the lowest level in 30 years.
The decline was in line with expectations among economists who were calling for a loss of 6,000 jobs last month as economic conditions deteriorated. Compared to a year earlier, Ontario showed a net gain of 100,200 jobs, an increase of 1.5 per cent.
Ontario experienced an increase of 20,000 positions, the lone province in Canada to see an employment increase in January.
The jobless rate in Alberta hit 7.4 per cent in January, up from seven per cent in December.
“So, that’s a little bit slow historically, but still, I mean, it’s not bad given the oil-price shock that we’ve been dealing with”.
Its report found a nationwide net increase of 19,700 jobs in the services industry only partially made up for the 25,300 net drop in employment in the goods-producing sector. While the local labour force increased to 410,000 from 401,800, the number actually employed rose to 383,800 from 379,500.
In Edmonton, our jobless rate went up by 0.2% to 6.3%.
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“Overall, the story is the economy is struggling to grow and it is struggling to produce much in the way of employment”, said BMO Capital Markets chief economist Doug Porter. The decline was weighed down by big losses 13,700 positions in agriculture and 11,000 jobs in manufacturing.
