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Unemployment rate increases in Alberta despite more jobs: StatCan
CALGARY -- Alberta gained 28,000 jobs in the month of May, according to the latest Labour Force Survey released Friday morning from Statistics Canada.
The increase in employment follows a cumulative decline of 361,000 jobs from February to April.
Alberta’s job increases were entirely driven by the services-producing sector after the province allowed some businesses such as restaurants and non-essential shops to reopen as of May 14.
The unemployment rate in the province increased by 2.1 percentage points to 15.5 per cent, which is now the second highest in the country behind Newfoundland and Labrador at 16.3 per cent.
Nationwide, the average rate of unemployment is now 13.7 per cent, topping the previous high of 13.1 per cent set back in December 1982.
Canada added a total of 290,000 jobs across the country. According to Statistics Canada data, the total number of hours worked is increasing at a faster pace than employment.
Total hours worked across all industries grew by 6.3 per cent in May, compared with an increase of 1.8 per cent (290,000 jobs) in employment.
Alberta Economic Recovery Plan
In response to one of the most dramatic economic downturns in Alberta’s history, the provincial government will start rolling out an economic recovery plan later this month focused on cultivating key industries.
Premier Jason Kenney said last week that Alberta’s strategy will take a "pedal to the metal" approach to diversification after a steep decline in the price of oil.
On Monday, Finance Minister Travis Toews announced that his financial blueprint will be centred on growing sectors such as energy, agriculture, technology and petrochemical manufacturing.
A recent study from the Conference Board of Canada projects Alberta will see its economy shrink by 6.8 per cent this year.
Toews called that report realistic and noted the downturn will be measured in months not weeks.