Mixed message from recent unemployment numbers

Business leaders are not reading much into recent unemployment numbers for the region.

In the monthly data dump of labour numbers from Statistics Canada, Prince Albert’s unemployment rate dropped slightly in June to 7 per cent unadjusted seasonally, down from 8.8 per cent in 2016. The provincial rate, however, rose slightly from 6.3 to 6.5 per cent. This is 0.3 per cent higher than this time last year.

“Those numbers are changing and probably upwards, but I don’t think they are significant on the effect on our economy at this point,” Larry Fladager, CEO of Prince Albert and District Chamber of Commerce said, making note the numbers are in line with the national average.

The country has added 351,000 jobs in the past year, bringing the rate to 6.5 per cent, down 0.1 points from May.

Saskatchewan was the only Western province to see year-over-year unemployment rise, with Alberta, B.C. and Manitoba seeing a decline in rates.

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The trend upwards was of slight concern for Fladager, but he held confidence in the gradual recovery of the oil patch and felt this could help get a few people back to work.

“We are hearing that there is work but the job pay rates are not as high as they once were when oil was $110,” he said. “When those people get back to work they will not be getting paid as well and this will have a long-term effect on the economy.”

According to Fladager, the economic mood in Prince Albert has remained unchanged for some time. He said many underestimated how hard and how long the downturn would linger over the economy.

“The comeback just isn’t there yet,” he said. “I think it will rebound and get back, but at the same point and time, I am not a firm believer we are ever going to see the oil prices we saw in the past.”

He thought many business people have adjusted to the current state and are running lean operations. Despite, Fladager said many are still optimistic and this has kept employment in the area steady. He said as the city rebrands from a “smokestack industry” to a more service-based community, its becoming more resilient. As well, news such as the prospect of a diamond mine east of P.A. helps to create confidence in the future.

“If people are competitive, their business is going to be good. People still need the services P.A. provides,” he added.

tyler.marr@jpbg.ca

On Twitter: @JournoMarr