Alberta's jobs crisis continues

National unemployment drops; Alberta's increases as we shed full-time jobs

EDMONTON, July 9 /CNW/ - Alberta is experiencing an ongoing jobs crisis, as our province shed full-time jobs while Canada, overall, saw increases in full-time employment.

In June, Alberta's unemployment rate edged up slightly, from 6.6% to 6.7%. However, the more disturbing picture is in the loss of full-time employment. Alberta dropped 9,600 full-time jobs between May and June 2010.

"Alberta is clearly still feeling the impacts of the recession - unnecessarily," says Gil McGowan, President of the Alberta Federation of Labour. "Alberta was one of the only jurisdictions in the industrialized world to refuse to invest in economic stimulus. The result is we are lagging behind in recovery, especially where it counts the most, which is full-time employment," says McGowan.

"Even business leaders know our economy is still fragile," he says. The Canadian Federation of Independent Business reported this week that confidence levels among owners of Alberta's small and medium-sized business fell almost three points and said: "Unfortunately, business owners in several key sectors of Alberta's economy, including agriculture, construction and hospitality, continue to maintain the lowest levels of confidence."

Youth unemployment (15-24) remains stubbornly high at 11.7%, and aboriginal off-reserve unemployment remains at 15%, unchanged from a year ago.

In Budget 2010, the government of Alberta cut training programs by $23 million, mostly for youth and aboriginal people (see backgrounder).

Alberta's ongoing jobs crisis is further illustrated by bulging social assistance caseloads. Since 2008, social assistance caseloads have gone up by 50% (see backgrounder) to over 40,000 cases. According to the government of Alberta, the province has not seen income support caseloads this high since 1997.

"Unemployed Albertans are exhausting their EI benefits, and they have no other options. This government is creating a social crisis by going against all available economic wisdom - cutting spending when they should be investing, cutting training programs when they should be placing a premium on job growth," concludes McGowan.

Backgrounder

Alberta's Jobs, Employment Training and Social Crisis

    
             Employment Training Programs in Alberta, 2009-2010
       Source: Alberta Employment and Immigration Budget Estimates By
                           Department, Budget 2010

    -----------------------------------------------------------------
                                         2010 Budget
    Employment          2009 Forecast     Estimates
     Program            (in millions)   (in millions)      % Cut
    -----------------------------------------------------------------
    Youth Connections        7.5             5.51          26.59%
    -----------------------------------------------------------------
    Career Development
     Services              60.02            52.41          12.68%
    -----------------------------------------------------------------
    Basic Skills/
     Academic
     Upgrading             27.48            22.93          16.55%
    -----------------------------------------------------------------
    Summer Temporary
     Employment             9.56             7.41          22.48%
    -----------------------------------------------------------------
    Workforce
     Partnerships          11.52             7.56          34.36%
    -----------------------------------------------------------------
    Aboriginal
     Development
     Partnerships           3.68             3.41           7.39%
    -----------------------------------------------------------------
    

To view Alberta Social Assistance Caseloads, 2002-2010 click here for graph: http://www.afl.org/upload/Release17Graph.pdf

For further information: Media Contacts: Gil McGowan, President, Alberta Federation of Labour, 780-218-9888