Unemployment in Alberta climbs to second-highest rate in Canada at 8.4 per cent

The August job numbers from Statistics Canada are out and here in Alberta, the unemployment rate is the highest it’s been since 2017.

Alberta’s unemployment rate is now the second highest in the country.

Statistics Canada released its August 2025 Labour Force Survey on Friday, which showed Alberta’s jobless number jumping six-tenths of a percentage point to sit at 8.4 per cent, significantly higher than the national rate of 7.1 per cent.

Only Newfoundland and Labrador had a higher unemployment rate in August, sitting at 10.7 per cent.

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It marked Alberta’s the highest rate since August 2017 – excluding 2020 and 2021 when the COVID-19 pandemic hit.

Employment fell by 14,000 (-0.6 per cent) in August, the second consecutive monthly decrease.

According to Statistics Canada, the biggest declines were in manufacturing and in wholesale and retail trade.

“We’re still kind of in a wait-and-see mode for the Canadian economy,” ATB Financial chief economist Mark Parsons said. “We’re looking for a trade deal with the U.S., but in the meantime, it’s a very uncertain environment and businesses are very cautious with their hiring.”

That’s been especially tough on young people in the province.

Alberta’s youth employment organizations say they’ve been noticing a worrying trend over the last few months.

“(This summer), youth (were) coming through telling us exactly what the numbers are telling us now,” said Trevor Wagenvoort with 5th and 5th Youth Services. “One in every five coming through could not find a job, and a lot of them were trying to get into manufacturing.”

Alberta’s Jobs Minister Joseph Schow sent a statement echoing the concern — and largely blaming the federal government for the downturn.

“The job numbers published (Friday) show a challenging situation across the whole country,” it read. “These numbers also come after a decade of reckless immigration policy, along with Alberta facing the fastest-growing population in Canada through both immigration and interprovincial migration.”

Municipal magnifier

Looking at jobless rates in Alberta’s four largest cities, Edmonton’s was highest in August, climbing to 8.5 per cent from 7.9 per cent the month before.

Calgary’s jobless rate was unchanged, sitting at 7.7 per cent in August.

“Calgary’s labour market held relatively steady in August as the city continues to lead major Canadian cities in labour force participation,” said Kate Koplovich from Calgary Economic Development. “However, dipping consumer confidence and continued trade uncertainty is resulting in a slowdown of both goods-producing industries as well as service sectors.”

Lethbridge and Red Deer both had unemployment rates of 6.7 per cent in August, up from 5.7 per cent and 5.4 per cent respectively.

The city with the largest unemployment nationally was Windsor, Ont., at 11.1 per cent.