Unemployment in Alberta increases in December after a year of ‘economic uncertainty’

Alberta's provincial flag flies on a flag pole in Ottawa, Monday July 6, 2020. (THE CANADIAN PRESS/Adrian Wyld)

Alberta’s unemployment rate climbed slightly last month, ending the year on par with what the province saw at the end of 2024.

Statistics Canada released its December 2025 Labour Force Survey on Friday, which showed Alberta’s jobless rate gaining 0.3 percentage points from the month prior to sit at 6.8 per cent.

That’s relatively unchanged from the 6.7 per cent the province recorded in December 2024.

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According to Statistics Canada, employment in Alberta declined by 14,000 jobs in December (0.5 per cent), partly offsetting an increase of 29,000 in November.

Year-over-year, employment in Alberta was up by 58,000 jobs (2.3 per cent) in December 2025.

Unemployment in Alberta cities

Unemployment in three of Alberta’s four largest cities declined in December.

It increased only in Red Deer, which now has the third-highest jobless rate of any city in Canada, sitting at 8.9 per cent, up from 8.7 in November 2025.

Calgary saw a sizeable drop of 0.5 percentage points, sitting at 6.8 per cent in December compared to 7.3 per cent in November.

“Calgary’s job market ended the year on relatively steadier footing,” said Afiba Nyamekye, director of economic intelligence at Calgary Economic Development. “We continue to lead the nation with the highest participation rate. At the same time, fewer people were looking for work in December, and more gains were in part-time roles, so we’re cautious about calling this a turning point.”

“As we head into 2026, Calgary is well positioned to continue attracting investment and skilled talent, but maintaining momentum will require a continued focus on innovation and diversification.”

Edmonton’s unemployment rate dipped to 7. 5 per cent in December from 7.7 the month before.

Lethbridge’s jobless rate sat at 7.7 per cent, compared to eight per cent in November.

Youth unemployment rate increases

Nationally, the youth unemployment rate (ages 15 to 24) climbed by 0.5 percentage points in December to sit at 13.3 per cent.

The December 2025 labour force survey examined the week of Dec. 7 to 13.

In its report, Statistics Canada noted Canada’s labour market faced headwinds in 2025, due in part to the “economic uncertainty” introduced by the threat or imposition of tariffs on exports to the United States.