Lethbridge unemployment rate stays steady; workforce shrinks
New employment data from Statistics Canada shows the unemployment rate in Lethbridge stayed at 5.3 per cent between May and June.
That's a better figure than the Canadian average of 5.4 per cent and Alberta's average of 5.7 per cent.
But that figure doesn't tell the whole story, as the workforce in Lethbridge shrank.
"It's a bit of a misleading number. There are actually fewer people employed. So there were about 1,400 fewer jobs in the economy last month, so people might ask, 'Why didn't the unemployment rate change?' ... That's a function of more people actually leaving the workforce," said Trevor Lewington, Economic Development Lethbridge CEO.
In January of this year, 68.7 per cent of people were either employed or looking for work but by June, that figure had fallen to 61.3 per cent.
Experts aren't sure why so many appear to be leaving the workforce.
"If you see a wave of retirements, for example, that could be a part of a normal change in the workforce. People going on maternity leave, for example, are assumed to not be participating in the workforce. But we've seen a significant decrease and there's really no explanation," Lewington said.
The shrinking workforce is taking its toll on businesses.
Blanco Cantina recently opened in downtown Lethbridge and has had some issues with staffing the restaurant.
"So, front-of-house, the side that all the customers see, we've actually had a really good time retaining that staff. Back-of-house though, it can always be challenging. So we've had a little bit of turnover in the back. But we're doing our best to adjust," said Ryan Wakeman, general manager for Blanco Cantina.
Wakeman says the restaurant industry has been dealing with staffing problems since the onset of the pandemic.
He says Blanco Cantina is working hard to attract new employees, while also retaining its current workforce.
"We're kind of always looking for more applicants, whether that's word-of-mouth, online, friends through other employees. We've offered incentive programs for employees bringing other employees in,” he said.
Lethbridge's 61.3 per cent participation rate falls behind the national average of 65.7 per cent and Alberta's average of 69.5 per cent.
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