At 9.7 per cent Red Deer has the worst unemployment rate among Canada's metropolitan areas, according to Statistics Canada's January Labour Force Survey.
The seasonally adjusted, three-month moving average for metropolitan areas showed Windsor, Ont. had the second highest unemployment rate at 9.1 per cent, followed by Toronto at 8.8, Belleville-Quinte West, Ont. at 8.3, and Oshawa, Ont. at 8.2.
Red Deer's unemployment rate has actually improved from 10 per cent in December.
Rhiannon Hoyle, Alberta NDP Shadow Minister for Jobs, Economy, and Trade, said Calgary also has the worst unemployment rate of a major Canadian city at 7.7 per cent.
“This month Alberta takes the disappointing distinction of having cities with the worst unemployment in the entire country. Red Deer has been identified as the Canadian city with the highest unemployment rate," said Hoyle, in a statement.
“It all just continues to show how ineffective this UCP government is at meeting the needs of Albertans who continue to struggle. Instead of doing what’s right and focusing on the issues important to Albertans, Danielle Smith’s self-serving government won’t combat the rising cost of living many are facing.”
Jobs, Economy and Trade Minister Matt Jones said unemployment rates are declining in all major Alberta metropolitan areas including Calgary, Edmonton, Lethbridge and Red Deer.
According to the Municipality of Red Deer’s most recent Economic Report Card, Red Deer’s economy is going strong, he added.
"Based on Labour Force Survey data, the labour force in Red Deer has grown by 5.8 per cent over the last 12 months, the second fastest among census metropolitan areas in Alberta after Calgary (+7.9 per cent). However, the employment growth at three per cent, has not kept pace with labour force growth in the same period - resulting in an increase of the unemployment rate. With affordable housing, low taxes and a reasonable cost-of-living, it is no wonder more people from across Canada are wanting to live and work in Red Deer," said Jones, in a statement.
He said according to the City of Red Deer's website, the city is also undergoing a shift from traditional industries like manufacturing and agriculture to sectors such as professional services and technology.
"This transition can lead to temporary employment gaps as the workforce adapts. Certain industries in Red Deer experience seasonal fluctuations, affecting employment levels. For instance, construction and agriculture may see reduced activity during colder months, impacting overall employment rates," Jones said.
"As we have seen across Alberta, as new residents settle into their new jobs and the labour force growth rate naturally slows, we will see the unemployment rate retract. Alberta’s economy is diversifying and with that, some labour market changes are expected in our major metropolitan areas.”
He said Alberta remains the economic engine of Canada, and our labour force is holding strong - despite uncertainties in international trade and a stagnate national job market.
"Alberta still maintains the highest weekly earnings in Canada and has some of the lowest tax burdens in all of North America. With affordable housing, low taxes and limitless opportunities, Alberta continues to be the best place in Canada to live, work, invest and raise a family," Jones said.
Mayor Ken Johnston said he was surprised by Red Deer's January unemployment rate after such positive year.
"When I look back at 2024, we had record housing starts, we had a great year for development permits. We had new physicians coming into the city. Our population grew by 3.7 per cent," Johnston said.
He said affordable rent and the cost of living make Red Deer an attractive place, but there wasn't the employment growth to offset the expanding local labour market. Struggles in retail sector may have played a role, as well as the post-Christmas period slump. A mismatch between labour's skills and available jobs could have also contributed.
But based on continued growth in development permits in January unemployment should fall when construction gets back into high gear, which will include the expansion of Red Deer Regional Hospital Centre, Johnston said.
"Just based on development permits, and what I see in the community, I do see improvement ahead."
Alberta’s seasonally adjusted unemployment rate in January held steady at December's rate of 6.7 per cent, and was fourth highest in Canada last month. Quebec and Saskatchewan had the lowest rates in January, both at 5.4 per cent.
The national unemployment rate is 6.6 per cent.
