Alberta unemployment rate expected to rise - august 8. 2009

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Alberta unemployment rate expected to rise

Economists predict more job losses to come, after July figures worse than anticipated

By Bill Mah, Edmonton Journal

Alberta's jobless toll may be the highest in 13 years, but the worst is yet to come as companies continue to cut workers during a deep recession, say economists.

Alberta's unemployment rate rose to 7.2 per cent in July--a high not seen since June 1996, said Statistics Canada, which released unexpectedly grim labour market news Friday.

Canada lost 45,000 jobs--more than feared. Most economists were predicting 20,000 job losses in July.

Alberta lost 3,700 jobs compared to June, while the province's labour force increased by 5,600 in July as jobseekers moved to the province.

The number of full-time workers fell by 11,900 in Alberta; those working part-time increased by 8,100-- another sign economists say points to a weakening labour market.

"The current weakness in conventional oil and gas drilling, as well as the sharp retrenchment in construction and manufacturing activity, has left many companies no choice but to cut payrolls," said ATB Financial senior economist Todd Hirsch.

Job losses in Alberta will only get worse in the next few months, he predicted.

"Labour indicators ... are well-known to lag conditions in the overall economy. So even if the recession appears to be losing its grip, we don't expect the jobs market to reach a bottom until sometime in the fall or early winter."

Premier Ed Stelmach is confident oil and gas drilling incentives introduced this year will keep some Albertans from joining the unemployment ranks.

"The numbers are increasing more than originally predicted, and it's very concerning to me," he said.

"But I can assure all Albertans that we will maintain all the programs that are necessary to look after those who not only lost their jobs, but look at how we also can get them back into the workforce."

Alberta's unemployment rate could see improvement in September when many jobseekers leave the labour market for school or training, said Sally Stuike, a spokeswoman for Alberta Employment and Immigration.

"We are hopeful and optimistic that the jobless rate here in Alberta will improve," she said, noting the latest statistics at least show an increase in part-time jobs.

As well, the overall job picture wasn't bad in all parts of Alberta. The Lethbridge-Medicine Hat area's unemployment rate remained unchanged from June to July at 5.5 per cent. The Banff-Jasper-Rocky Mountain House area remained at 5.9 per cent. Wood Buffalo-Cold Lake's jobless rate actually declined to 5.4 per cent in July from six per cent a month earlier.

Compared to the same time a year earlier, there were 51,100 more people in Alberta's labour force--an increase the provincial government and economists attribute to an influx of people from other parts of Canada.

Meanwhile, since July 2008 Alberta has shed 26,100 jobs.

Between June 2009 and July 2009, finance, insurance, real estate and leasing sectors lost 7,600 jobs. Accommodation and food services lost 4,600 jobs in the same period.

Third lowest

Alberta maintained Canada's third-lowest jobless rate, behind Saskatchewan at 4.7 per cent and Manitoba at 5.2 per cent.

But since last fall, Alberta has been the hardest hit by job losses, said one economist.

"While the national jobless rate has climbed by 2.3 percentage points since the onset of the recession in October 2008, unemployment has surged the most in Alberta (a gain of 3.5 percentage points), Newfoundland (plus 3.3), British Columbia (plus 2.6) and Ontario (plus 2.6)," said Pascal Gauthier, an economist with TD Bank Financial Group.

The national unemployment rate remained flat in July at 8.6 per cent as some jobless stopped looking for work, the federal agency said. The country lost 45,000 jobs full-and part-time jobs in July.

"The current recession's job loss tally now sits at 414,000, or 2.4 per cent, and keeps inching closer to that experienced in the early 1990s recession (3.3 per cent)," Gauthier said.



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"Albertans are losing jobs at a faster pace than workers in most other provinces," McGowan said. "But the system that is supposed to provide a safety net is failing us miserably. Only about 40 per cent of Alberta's unemployed are getting EI benefits --the lowest rate in the country."

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quelle

http://www.calgaryherald.com/business/fp...4075/story.html

momentan siehts echt beschissen aus.naja naechstes jahr wirds wohl wieder aufwaerts gehn und hoffentlich fallen hier bald mal die hauspreise .bis jetzt tut sich net viel

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Cash squeeze fills Inn From the Cold for first time

Agencies expect greater winter demand

By Jamie Komarnicki, Calgary HeraldAugust 8, 2009Comments (2)

In a rare summer occurrence, homeless shelters across the city are overflowing, with the Inn From the Cold location reaching capacity for the first time since opening last fall.

The elevated numbers are another indication of the pressure the economic downturn is putting on the city's most vulnerable, agencies say.

"You're seeing people losing their jobs and losing their homes," said Diana Segboer, Inn From the Cold's executive director. The emergency shelter's 20 units are full with 19 families, said Segboer.

The facility reached its limit after six new families arrived over the long weekend and filled up the remaining units.

The situation is fluid, as some families are preparing to move to more permanent housing arrangements, Segboer said. The agency will seek other arrangements rather than turn families away, she said.

But the issue is a warning sign for the tough winter days ahead, said Debbie Newman, assistant executive director at the Calgary Drop-In Centre.

The centre is also stretched to the limit this summer, said Newman.

"Typically, summertimes have been more plentiful with seasonal labour and landscaping," said Newman. "We're seeing people unable to secure employment after months and months have gone by.

"We could increase our capacity marginally, but not enough to accommodate all of the numbers expected to come through the door in winter," Newman added.

Indeed, the news comes as statistics show the province's unemployment numbers are on the rise this month.

According to Statistics Canada, Alberta's jobless rate jumped to 7.2 per cent in July, the highest level in 13 years.

Reports have also shown a startling jump in shelter use in Calgary, coupled with continued rising homelessness.

Earlier this week, the Calgary Homeless Foundation reported 4,581 homeless people in Calgary, up from 521 since an official count last year.

The added pressure is straining an already burdened system, said Newman.

According to Segboer, summer is also a difficult time of year since it's easier to evict tenants during warm weather, rather than put them on the streets in the cold.

The Inn From the Cold shelter has seen numbers swell with evicted tenants and recent immigrants, she said.

"Times are tight out there," she said. "The basic needs we take for granted every day-- the food, milk and bread--our families are hurting for."

jkomarnicki@theherald.canwest.com

© Copyright (c) The Calgary Herald

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http://www.calgaryherald.com/news/Cash+s...2118/story.html