Calgary: Alberta’s unemployment rate has surged past the national average despite an overall positive trend across Canada, according to the latest report from Statistics Canada. The country generated 18,000 new jobs in June, outperforming economists’ expectations and lowering the national unemployment rate to 6.5%, down from 6.6% in May. This follows a massive gain of 88,000 jobs in May, marking a sustained period of growth for the Canadian labor market.
In stark contrast to the national momentum, Alberta’s unemployment rate climbed to 7% in June, representing a 0.4% increase from the previous month. Economists attribute this rise to a rapid population boom driven by interprovincial migration and international immigration. While the province continues to add positions, the sheer volume of newcomers has outpaced job creation, making it a major challenge to absorb the rapidly expanding workforce.
Nationally, job gains were primarily concentrated among youth and core-aged workers between 25 and 54, while labor participation fell among those over 55. The accommodation and food services sectors saw the strongest growth. Conversely, manufacturing, agriculture, and utilities experienced notable losses. The manufacturing sector alone has shed 61,000 jobs since January 2025, largely due to ongoing tariff disputes and economic uncertainties with the United States. Meanwhile, average hourly wages rose by 3.3% to $37.20, serving as the final major economic indicator for the Bank of Canada ahead of its upcoming interest rate announcement.
The crisis is particularly severe for Alberta’s youth, with the demographic’s unemployment rate soaring to 15.8%. Illustrating this struggle, Valerie Martinez, a young resident of Calgary, shared that she applied to over ten restaurants after finishing school but found it nearly impossible to secure employment without professional recommendations. Mark Parsons, chief economist at ATB Financial, noted that while Alberta’s job market is expanding, the workforce is growing at an unprecedented speed. Currently, growth in the service sectors alongside the traditional oil and gas industries remains the primary economic lifeline for the province.
