Red Deer closes 2023 with highest unemployment of major economic regions

The province started out the year at 6.0 per cent, also fourth highest in the country. The national average to start 2023 was 5.0 per cent.

Interestingly, Red Deer’s unemployment rate dipped in the middle of the year, but ended two tenths above where it was in January 2023, at 7.7 per cent. Among the five noted regions, Calgary was the only one to see an overall decline from January to December of last year.

Red Deer’s unemployment rate is shown in red. (Gov’t of Alberta Economic Dashboard)

Scott Robinson, CEO, Red Deer and District Chamber of Commerce, believes the approach to economic development in central Alberta is disjointed.

“[Red Deer having the highest rate] reflects, on a macro level, the pretty well flat economic development conditions here in the city. We have other indicators like housing starts and building permits also reflecting the same lack of growth. That lack of growth shows up in job numbers in that there’s nothing driving unemployment to come down,” says Robinson.

“We are certainly one of the slower regions to come out of the post-COVID environment while other regions are growing. We’re kind of all doing the same thing or independent things and not collaborating as well as we need to. Economic development is a long-term strategy development for your region, but the reality is there’s been a siloed approach to it the last few years.”

Robinson says while an organization like Central Alberta Economic Partnership (CAEP) has done good work with more on the horizon, it’s a, “small organization [representing 42 communities] with a big mandate,” that has also experienced leadership changes in recent years.

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The biggest player who can make a difference, he believes, is the City of Red Deer.

“In the City’s case, it knows it needs to and is in the process of looking at how it does economic development. It needs to take the leadership role of bringing everyone together. That’s what’s been missing the last couple years and there are a lot of reasons for that, some completely out of the City’s control,” he says. “We’re primed to come together and refocus around economic development, and the indicators are telling us we need to do that, which is an impetus to make it happen.”

Robinson says new energy developments, green energy projects, and a buoyed oil and gas industry will help in the months and years to come.

On the construction front, the $1.8 billion hospital expansion project will also help.

Robinson says a small but significant portion of the population — between 2.0 and 2.5 per cent — strongly desires construction jobs but is unwilling to move to find them, thus driving up the unemployment rate.

Matt Jones, Alberta’s Minister of Jobs Economy and Trade, says that with an increase of more than 93,000 jobs over the past year, Alberta has one of the top performing economies in Canada.

“Last month, Alberta’s leadership continued with the addition of 6,700 jobs, including many in the service, tech, and training sectors,” he says.

“While Alberta experienced a reduction in new construction jobs in December, this can be attributed to the seasonal nature of this work. 2024 is shaping up to be a promising year for new jobs as major projects including Dow, McCain, Coca-Cola and Teknol begin construction. Companies continue to choose Alberta because of our pro-business policies, skilled workforce, low taxes, abundant natural resources, and world class education system.”

A report from ATB Financial optimistically notes that Alberta employment has held up well in the higher interest rate environment. A 3.6 per cent job gain in 2023 was above the national increase of 2.4 per cent, and second only to P.E.I.

The annual unemployment rate was also steady, going up one tenth of a per cent over the year, despite a 3.7 per cent increase in the labour force — the largest increase since 2007, ATB notes.

(ATB Financial via Statistics Canada)

Alberta’s Opposition NDP says the latest numbers mean pressures of affordability on families continues to mount.

“Adding to the UCP decision to reimpose the gas tax on Albertans and breaking their promise to lower taxes, and refusal to provide any support, means that many Albertans are being faced with increasingly more difficult choices on how to make ends meet,” Nathan Ip, Jobs, Economy and Trade Critic, says.

“The UCP could have supported families in the recent session of the legislature, instead they focused on giving themselves more expensive gifts and higher salaries for their friends and insiders. These employment numbers should be a wake-up call for Danielle Smith and her government, who need to step up and start supporting Albertans.”

Learn more about the province’s latest job numbers on the Economic Dashboard at Alberta.ca.

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by Josh Hall | @Vancan19

Red Deer closes 2023 with highest unemployment of major economic regions

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