'Stunning' job rush continues in Alberta
Employment roll grows by 8,600 in September
By Mario Toneguzzi, Calgary Herald; With Files From ReutersOctober 9, 2011 7:21 AM
calgaryherald.com
Alberta continues to churn out jobs at a frenetic pace amid what one analyst described Friday as a period of "blockbuster" employment growth across the country.Photograph by: Colleen De Neve, Calgary Herald file photo
Alberta continues to churn out jobs at a frenetic pace amid what one analyst described Friday as a period of "blockbuster" employment growth across the country.
The province's unemployment rate dipped to 5.4 per cent in September - from 5.6 per cent in August - following a fifth straight month of job gains, Statistics Canada reported Friday.
The federal agency recorded 8,600 new jobs, bringing to almost 98,000 the number of new jobs created during the past year.
Robert Kavcic, an economist with BMO Capital Markets, said job growth in Alberta continues to separate itself from the rest of the country.
"Private-sector job growth in the province was up a massive 8.8 per cent year-over-year in September, the strongest growth since 1981 and even outpacing growth seen at the height of the energy boom in 2007."
Raquelle Kilotaitis has seen first-hand how positive the employment picture has become in Calgary. In September, she secured a job as a server with Model Milk restaurant.
"I was pretty pleased (with her job search)," said Kilotaitis, who graduated from university in April. "I have obviously been searching being a recent grad for a while now. But it's definitely a lot better than it was two years ago.
"There were lots of places (looking to hire). Lots of opportunities."
In the Calgary census metropolitan area, the unemployment rate dropped to 5.9 per cent in September from 6.0 per cent the previous month as 500 jobs were created. Since last year, 20,400 jobs have been created in the Calgary CMA, an increase of 2.9 per cent in employment.
Nationally, Canada created six times as many jobs as analysts expected in September, once again outshining the United States.
"It's a blockbuster report," said TD Securities macro strategist Mazen Issa.
Adjusted to take account of the relative sizes of the two economies and slightly different statistical methods, Canada's stunning gain of 60,900 new jobs, reported by Statistics Canada on Friday, would be comparable to half a million new U.S. positions.
U.S. employment rose 103,000 in September.
"There's a lot of job creation here and certainly an awful lot compared to what we're seeing in the United States . . . (but) we remain in a fragile global recovery," Prime Minister Stephen Harper told reporters in Regina.
Adding to the positive news, September saw 63,800 fulltime additions, while parttime employment declined by 2,900.
The unemployment rate was Canada's lowest since December 2008, and appears to reflect the greater speed with which Canadians who lose their jobs manage to return to work. A jobless American has about a 15 per cent chance of leaving unemployment in a month, while in Canada the chances are about 33 per cent, Statistics Canada said recently.
Dan Sumner, economist with ATB Financial in Calgary, said Alberta's job creation figures have impressed even the most optimistic observers.
"Moving forward, it is highly unlikely that Alberta's labour market is going to be able to keep churning out jobs the way it has in the first three quarters of 2011," he said.
"Nonetheless, if fears surrounding a European financial crisis and/or U.S. recession are realized, Alberta's labour market will be entering that period in a strong position."
Sumner said the number of full-time jobs in Alberta expanded by a "stunning" 21,400 positions and was offset by a loss of 12,800 part-time positions.
The oil and gas extraction category was the largest gainer, adding 10,600 positions in September.
mtoneguzzi@calgaryherald.com
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