AREA’S JOBLESS RATE AT 15.6%

Unemployment has doubled since COVID-19 slammed economy

Calgary’s unemployment rate has now more than doubled since the start of the COVID-19 pandemic, according to numbers from Statistics Canada released Friday.

The region’s unemployment rate is now the second-highest among major cities, sitting at 15.6 per cent, just behind Edmonton — a major increase from the pre-pandemic rate of 7.4 per cent.

Though Alberta as a whole gained 91,600 jobs from May, a 4.6 per cent increase, the Calgary region lost another 14,300 jobs. In even deeper contrast, Canada as a whole gained 953,000 jobs.

Though the continued job losses are a big hit, it’s a significant slowdown from the 33,900 jobs lost in May and the 42,700 positions shed in April, said Mary Moran, president and chief executive officer of Calgary Economic Development.

“The rate of increase in the number of people losing jobs is slowing, but the continued losses are contrary to the national rebound,” Moran said in a statement. “The job losses due to the COVID-19 pandemic and depressed energy prices are having a devastating impact and we need help from all orders of government to navigate this historic challenge.”

Moran touted the provincial government’s Alberta Recovery Plan, which saw tax cuts for corporations accelerated and pledged capital commitments to large infrastructure projects, as a path to recovery from the grim numbers.

“The province’s support programs and focus on tech will help us move forward our vision for Calgary being the destination for people who want to help solve some of the world’s greatest challenges through advanced technology,” she said.

The June 2020 labour force survey was conducted between June 14-20, just days after the province’s stage two of the COVID-19 economic relaunch allowed many businesses to reopen.

Edmonton’s active workforce grew by 10,200 to 667,400, which is 16 per cent less than the same time last year.

Alberta-wide, job growth was stronger than in the two largest cities, but overall weaker compared to the rest of the country. The 91,600 jobs gained in Alberta were the third lowest out of the provinces. Only Newfoundland and Labrador and P.E.I. experienced a smaller percentage increase in employment. Nationally, employment rose 5.8 per cent.

The number of unemployed grew in Alberta by 17,400, an increase higher than any other province. The province continues to have the second-highest unemployment rate in the country only behind Newfoundland and Labrador and well above the national rate of 12.3 per cent.

Premier Jason Kenney said the numbers show there is a long way to go, and pointed to the government’s economic recovery plan announced by the province last week.

“The unemployment rate continues

Continued losses are contrary to the national rebound.

to be at an historic high due to the global coronavirus recession and of course the largest collapse of energy prices in history,” he said while marking a carbon capture milestone at a Shell facility in Fort Saskatchewan Friday afternoon. “Through bold action, (the economic recovery plan) will leverage our biggest industry, energy, while continuing to diversify in other areas, including innovation.”

The plan includes a $10-billion investment in infrastructure to create 32,000 jobs and immediate reduction of the corporate tax rate to eight per cent to attract investment.

But Opposition NDP MLA Joe Ceci argued the tax cut won’t do the trick and a plan needs to be in place to better diversify the economy and provide support for residents looking to get back to work.

“Albertans need support for Albertans to get them back to work,” Ceci said Friday in response to the job stats. “We need a bold vision and a real plan that diversifies our economy and sets our province up for recovery that includes each and every Albertan.”