Highest Unemployment Since Jan 2017
7.5% unemployment in Alberta
"Canada's unemployment rate rises to 6.8%"
"Jobless rate at its highest since January 2017, excluding the pandemic"
These were the headline and sub-headline of a recent article on Financial Post
If you live in many Provinces in Canada, you may be feeling the impact of unemployment and the economy.
It feels very much like we're in a recession even though technically the GDP data doesn't say so.
I'll write about this "gap" phenomenon in a future newsletter - the gap between the GDP data suggesting a growing economy vs. people "feeling" like a recession
.
Today, I want to unpack the unemployment rate.
Especially about the unemployment rate in Alberta.
I wrote about this topic couple months ago.
You can read that issue here:
https://www.whyalbertanow.ca/p/alberta-unemployment
If you recall, I mentioned the unemployment data in Alberta doesn't show the entire picture of the health of the Alberta economy:
"If we zoom out, we'll see what's happening is completely normal.
With the historic influx of people moving to Alberta in the past couple years, the jobs market are taking some time to adjust.
The increase in unemployment rate is a reflection of people moving to Alberta and not able to find a job, today."
Let's take a look at the Alberta November Unemployment (released on December 6, 2024)
"Alberta is the province with the fourth-highest unemployment rate in Canada, behind Ontario (7.5 per cent), Prince Edward Island (eight per cent) and Newfound Land and Labrador (10.1 per cent)."
On the surface, it looks like the Alberta economy is struggling:
The fourth-highest unemployment rate in Canada.
7.5% unemployment rate.
Ouch and ouch!
.
Some investors may look at that data on the surface and say:
"This is why I don't invest in Alberta"
But if they would look deeper, they would see a completely different picture.
Their refusal to spend the time to look deeper will leave more opportunities for people like my Partners and myself.
How unfortunate!
.
What's the insight they missed?
Take a look at the data published by Stats Can:
"Employment increases in Alberta (+24,000; +1.0%) and Quebec (+22,000; +0.5%) accounted for most of the overall national employment increase (+51,000; +0.2%) in November.
In Alberta, the employment gain in November was the third in four months, and pushed the employment rate in the province up 0.4 percentage points to 64.1%. The unemployment rate in Alberta was little changed at 7.5% in November."
During November, 51k jobs were created in Canada.
Out of those 51k jobs created, 24k of them were created in Alberta.
24k ÷ 54k = 47%
Say it in plain English:
47% of the new jobs created last month in Canada were in Alberta.
Alberta has also been adding new jobs for the past 3 out of 4 months.
Quebec’s numbers may look competitive to Alberta.
Except, Quebec has twice the population than Alberta.
It means, most Provinces in Canada has virtually no job growth, with only Quebec and Alberta are growing.
Alberta is growing twice as fast as Quebec when it comes to creating new jobs.
Alberta is the economic engine of Canada right now!
.
Isn't it interesting how that's not the headline of a news article?
"47% of the new jobs created last month in Canada were in Alberta"
This is what excites me as an investor in Alberta.
Because, if everyone sees what I'm seeing, then there's no opportunity to explore.
Opportunity is seeing things when others don't.
Look beyond the headlines, do your research.
You will find that opportunities are waiting for you to uncover.
If you like my work, I invite you to share it with others.
Happy investing,
Eric Chang
Calgary, Alberta
December 10, 2024
Copyright © 2024 Why Alberta Now.
No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law.
The information provided herein is believed to be accurate and reliable, but Why Alberta Now does not guarantee its accuracy or completeness. The content is for informational purposes only and is not intended to be a substitute for professional financial advice. Why Alberta Now is not a financial advisor and does not provide personalized financial advice. The views and opinions expressed in this publication are those of the author and do not necessarily reflect the official policy or position of Why Alberta Now. The content may be subject to change without notice and may become outdated over time. Why Alberta Now is under no obligation to update or revise any information presented herein.
Investments involve risks, and individuals should consult with a qualified financial advisor before making any investment decisions. Prospective investors should carefully consider the investment objectives, risks, charges, and expenses of any investment before investing.