Alberta's unemployment rate jumps yet hospitality faces staffing challenges
Rising unemployment is a sign the economy is starting to cool off amid efforts to rein in inflation, while Alberta's hospitality sector struggles to fill open positions.
Teatro Group officials say there are open positions in management, front-of-house and in the kitchen at all seven of its Calgary locations.
"There's definitely a shortage of people who are coming through the front door looking to work in hospitality," said Matthew Batey, chief operating officer for Teatro Group.
"It is very curious that the (un)employment rate is continuing to increase yet hospitality continues to struggle, but I think it's a bit of a lagging indicator. As the unemployment rate goes up, some of that correction will happen in a month or so in hospitality."
Batey says the company is equally focused on recruitment and employee retention, but strengthening the dining experience for guests is the best way the group hopes to manage ongoing economic uncertainty.
ALBERTA'S JOBLESS RATE CLIMBS
There's a growing pool of job-seekers in Alberta.
Alberta's unemployment rate spiked in August, but jobless rates in both Calgary and Edmonton remained largely unchanged.
According to Statistics Canada’s August 2022 Labour Force Survey, Alberta had an unemployment rate of 5.4 per cent last month, up from July when it sat at 4.8 per cent.
Statistics Canada noted that Alberta, along with Manitoba, had the youngest employed population in Canada, as younger workers outnumbered older workers by approximately six to five (not seasonally adjusted).
In Calgary, unemployment fell slightly to 4.9 per cent in August from five per cent the month before.
The last year unemployment in Calgary was under 5.0 per cent was 2014. Unemployment peaked at 15.4 per cent in June 2020.
"Our unemployment rate has reached levels last seen during the peak of Calgary’s energy boom," said Calgary Economic Development spokesperson Dexter Lam.
"While this may appear welcome after years of labour market uncertainty related to energy sector volatility and COVID-19, such tight labor market conditions do complicate the near-term outlook in the face of inflation and potential recessionary pressures."
INFLATION AND HOUSEHOLDS
To cool inflation, the Bank of Canada continues to increase the key interest rate, which now rests at 3.25 per cent.
"There's just too much stimulus in the economy right now in the eyes of the Bank of Canada, and for that reason they want to damper demand," said Trent Hamans, vice-president of private banking and wealth management.
He says it means Alberta households should take steps to prepare for economic volatility.
"We talk to clients about managing what they can control," said Hamans.
"(We ask) what is their savings rate? What is their debt management ratio."
UNEMPLOYMENT DIPS
Edmonton's unemployment rate also dipped to 4.9 per cent in August, compared to 5.1 per cent in July.
Nationally, the unemployment rate was 5.4 per cent in August, up from a historic low of 4.9 in June and July.
It was the first time in seven months the national jobless rate had risen.
Statistics Canada says the economy lost 31,000 jobs in August, marking the second consecutive month of job losses.
CTVNews.ca Top Stories
BREAKING New York appeals court overturns Harvey Weinstein's 2020 rape conviction from landmark #MeToo trial
New York’s highest court on Thursday overturned Harvey Weinstein’s 2020 rape conviction, finding the judge at the landmark #MeToo trial prejudiced the ex-movie mogul with improper rulings, including a decision to let women testify about allegations that weren’t part of the case.
BREAKING Monthly earnings rise, payroll employment falls: jobs report
The number of vacant jobs in Canada increased in February, while monthly payroll employment decreased in food services, manufacturing, and retail trade, among other sectors.
Doctors say capital gains tax changes will jeopardize their retirement. Is that true?
The Canadian Medical Association asserts the Liberals' proposed changes to capital gains taxation will put doctors' retirement savings in jeopardy, but some financial experts insist incorporated professionals are not as doomed as they say they are.
Remains from a mother-daughter cold case were found nearly 24 years later, after a deathbed confession from the suspect
A West Virginia father is getting some sense of closure after authorities found the remains of his young daughter and her mother following a deathbed confession from the man believed to have fatally shot them nearly two decades ago.
Something in the water? Canadian family latest to spot elusive 'Loch Ness Monster'
For centuries, people have wondered what, if anything, might be lurking beneath the surface of Loch Ness in Scotland. When Canadian couple Parry Malm and Shannon Wiseman visited the Scottish highlands earlier this month with their two children, they didn’t expect to become part of the mystery.
What do weight loss drugs mean for a diet industry built on eating less and exercising more?
Recent injected drugs like Wegovy and its predecessor, the diabetes medication Ozempic, are reshaping the health and fitness industries.
2 military horses that broke free and ran loose across London are in serious condition
Two military horses that bolted and ran miles through the streets of London after being spooked by construction noise and tossing their riders were in a serious condition and required operations, a British government official said Thursday.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
It's no secret that spring can be a tumultuous time for Canadian weather, and as an unseasonably mild El Nino winter gives way to summer, there's bound to be a few swings in temperature that seem out of the ordinary. From Ontario to the Atlantic, though, this week is about to feel a little erratic.