Though Alberta’s unemployment rate dropped slightly last month, it remained higher than the national number. Statistics Canada release its August 2026 Labour Force Survey on Friday, which showed Alberta’s jobless rate dipping to 6.8 per cent from seven per cent in July. Canada’s national unemployment rate was 6.4 per cent, unchanged from the month before. However, August saw employment decline by 42,000 nationally, which some say came as a bit of a surprise following several economists predicting more job gains. “I think what you’re seeing is an economy that’s just really struggling to find its legs.” said ATB Financial chief economist Mark Parsons. “We had three consecutive months of job growth and now we’re seeing that peter out.” “I know the numbers being released are a little bit of a shock when it comes to the predictions that economists had made for the month. However, it’s not all that surprising for us to see that trending downward during peak summer months,” said About Staffing recruitment manager Cristina Schultz. “Oftentimes, we do see key decision makers, and all of the people who are involved in hiring decisions take their holidays in the middle of the month, so many positions are put on hold. Things are slower moving in the month,” Schultz continued. Youth unemployment anxiety Those struggles are being felt by some university students, who say even finding entry-level jobs like fast food or retail has been a challenge. “I have not heard anything from them. I had applied for like 20 jobs before I got to the one that I’m being given an actual offer for. None of them got back to me, except for one, but they took me out for one interview and then nothing,” Cayden Munro, a first-year University of Calgary Student. While Munro has a job offer he plans on accepting, he says it’s been taxing to send so many applications out with almost no response or feedback. “It’s tedious, because it’s always the same thing. I go onto their website, I click apply for a job, find a job near my place, put in my resume, answer a few questions, and then give my email, and then just wait for them to never get back to me,” Munro said. “We are hearing that students are applying for dozens and dozens of jobs, and unfortunately, they’re just unsuccessful at securing a position. And as a result, they just give up,” added University of Calgary Student Union vice president external Mahad Rzain. The national youth unemployment rate is 12.9 per cent, and in Alberta this sits at 15.3 per cent. Rzain says this has caused anxiety for some students not just in finding a job as a student, but future prospects. “It is important that the province focuses on seasonal work for students such that they’re able to secure that summer job, because often students will try to be studying from the fall and winter semesters, and they will try to take a break in the summer and use that to work,” Rzain said. Other students say they’re very aware of the challenges in the job market, and chose their field of study accordingly. First-year mechanical engineering student Kyrill Filipovich says he went into mechanical engineering because it’s a field with strong hiring rates. “It’s very valuable because that’s what helps me study all those things, is the reliance of the knowledge that I can actually get a job after graduation,” Filipovich said. Key takeaways Parsons says one key takeaway from all of this is how pressure created by U.S. Canada tariffs, on top of increasing energy costs, is forcing some layoffs in key industries. “What you’re seeing, I think, is a bit of a correction for a labour market that maybe got a bit ahead of itself. It was reassuring that we’re starting to see jobs pick up. I think the question was the sustainability of those jobs,” Parsons said. It may seem contradictory to be concerned about jobs while unemployment in Alberta actually fell by 0.2 per cent, but Parsons explained that isn’t all due to job creation. He says slowing population growth and a shrinking workforce are largely contributing to less people looking for work. “When that happens. you can get lower unemployment, even when you’re losing jobs,” Parsons said. However, Schultz says there is optimism for the coming months, as she says a dip in August. has been consistent with previous years, and is usually followed by more gains. “September is historically one of the busiest months when it comes to new positions being added to the market and seeing that trend back up,” Schultz said. Alberta statistics Looking at Alberta’s four largest cities, only one – Lethbridge – sat below the national rate. Red Deer’s unemployment rate was 7.6 per cent in August, compared to 7.3 per cent in July Edmonton was unchanged at 6.9 per cent, while Calgary saw meager movement, dipping to 6.7 per cent from 6.8 the month prior. “The broader story is that Calgary continues to lead major Canadian cities in year-over-year employment growth, driven by steady gains in full-time positions,” said Brad Parry, president and CEO of Calgary Economic Development. “Even as local employers navigate a shifting economic environment and population inflows, this data points to an adaptive labour market where businesses are continuing to invest in the talent needed for long-term growth.” Lethbridge’s jobless number was 5.6 per cent, unchanged from the month prior. The August 2026 Labour Force Survey was conducted the week of Aug. 9 to 15.
