Local job numbers worsen but region fairing better than elsewhere in Alberta
By Medicine Hat News on May 9, 2020.
The unemployment rate in rural southern Alberta rose in April but sits well below other areas of Alberta as the effects of the pandemic response plowed into economic activity. The jobless rate in the Medicine Hat-Lethbridge economic region rose to 6.8 per cent last month – up 1.6 percentage points from March but less than half a point up from April 2019. Economists have argued that the numbers could mask deeper problems such as a higher number of business owners and contractors, who are ineligible for employment insurance, earning no income as commerce ground to a halt in April. As well, a large number of employees are likely getting fewer or potentially no hours as their places of employment prepare to re-open. It all comes after a steep decline in activity after health restrictions forced the temporary closure of many businesses and a raft of employment supports and income supports not technically classed as “unemployment insurance” were launched by Ottawa to gird the economy. The rate across the province doubled year over year in April to 13.4 per cent, led by Calgary and Edmonton where jobless claims rose by one-third over 2019 levels. That is just above a national jobless rate that shot up to sit at 13 per cent as previously leading provincial economies absorbed the shock of social distancing. Quebec’s figure doubled month to month and quadrupled year to year to sit at 17 per cent – the highest of any province. B.C., Ontario, Saskatchewan, and Manitoba all saw rates climb above 11 per cent. In Alberta, the rate is highest in central Alberta, where Red Deer’s rate sat at 11.1 per cent, up just marginally from the previous month. Calgary (currently 10.8 per cent), Edmonton (10.0), northeastern Alberta (10.1), and Camrose-Drumheller (9.3) and Wood Buffalo (7.9 per cent) were also higher. Compared to April 2019, 300,000 fewer positions were reported province wide in the service sector, and 85,000 fewer in the smaller goods-producing sector, where manufacturing, construction and oil and gas saw the largest declines. Among services, the total positions in food and accommodation provision were cut in half to 77,500 , and general trade lost 50,000 jobs during the month, Even health care and other social services lost 15,000 jobs, and public administration was lower as well. Information and technology was the only one of 16 sub-sectors that saw a gain in positions month to month, gaining 2,000 jobs, but still 10,000 less from spring 2019. 13-12
