Edmonton jobs on the rise despite falling oil prices
Economist says oil price dive could impact local job numbers in about six months
Despite falling oil prices, Edmonton gained 2,500 new jobs in December, says the city’s chief economist.
“We have a lot of pent-up demand for housing, for consumer services, for retail, et cetera, and it’s that momentum that’s going to be moving us forward over the next six to 12 months,” John Rose said on Monday's Edmonton AM.
Income in Edmonton is about 20 per cent above the national average. The unemployment rate also decreased slightly, down to 5 per cent from November’s 5.3 per cent. And the overall job growth during the past five years has been steadily up, a trend Rose calls “stupendous.”
“I think it’s probably still too early to pop the champagne corks.”
He thinks Edmontonians will likely begin to see the impact of falling oil prices in about six months.
“Many companies, large companies, have indicated that they’re going to be pulling back on their investment expenditures over the next year or so, and that’s going to hit field operations very, very quickly.”
In general, Rose said Edmonton is somewhat insulated from the direct impact of daily changing oil values because its economy relies primarily on manufacturing and professional services like engineering.
“While those are going to take a hit, it’s going to be a while before they’re affected,” he said.
But he warned that other sectors like post-secondary education and health care could feel the pinch if the province opts to deal with the oil deficit through more cutbacks.
“The province is a major employer here, as well we’re a centre for post-secondary education and healthcare, and both of those are highly dependant on provincial funding.”
Although Edmonton’s full-time employment numbers took a slight hit, overall Alberta saw more full-time jobs open up with the creation of 8,400 jobs.
The province-wide unemployment rate also went up slightly compared to November figures.