Alberta joblessness escalates in July, returning above the federal average after a previous dip below it.
In July 2025, Alberta's unemployment rate saw a significant increase, climbing from 6.8% in June to 7.8%. This rise was primarily due to a decline in employment, particularly a loss of full-time jobs, combined with an increase in the labour force participation.
Edmonton, the provincial capital, experienced the highest unemployment rate among Alberta's four largest cities, increasing from 7.5% in June to 7.9% in July. This made Edmonton's unemployment rate the fifth-highest among the 42 cities surveyed in the national labour force survey.
Red Deer was the only Alberta city to buck this trend, seeing a small decline in unemployment. The city's unemployment rate dipped one-tenth of a percentage point to 5.4% in July.
Lethbridge's unemployment rate also increased, rising from 5.2% in June to 5.7% in July. All but one of Alberta's four largest cities experienced an increase in unemployment, according to the July 2025 Labour Force Survey.
Calgary, however, showed resilience in its job market. Despite an increase in its unemployment rate from 7.4% in June to 7.7% in July, Calgary led job creation among Canada's major cities year over year. Kate Koplovich from Calgary Economic Development stated that it is yet to be determined whether the employment figures indicate a long-term slowdown in the job market or represent a temporary decrease in hiring.
It's worth noting that nationally, the unemployment rate remained at 6.9% in July, the same as the month prior. This means that Alberta's unemployment rate is currently higher than the national average.
The decline in employment in Alberta in July was approximately 17,000 (-0.6%). The job losses were concentrated among full-time positions (-38,400), although there was a partial offset by an increase in part-time employment (+21,600). The rise in the labour force participation amplified the increase in the unemployment rate.
Youth and core-aged workers particularly experienced employment declines, consistent with the broader Canadian trend where youth employment dropped sharply.
This situation reversed some of the gains seen in June and led to a significant increase in unemployment in Alberta, making the province’s rate higher than the national average.
[1] National Labour Force Survey July 2025 [2] Alberta Labour Force Survey July 2025 [3] Calgary Labour Force Survey July 2025 [4] Edmonton Labour Force Survey July 2025 [5] Lethbridge Labour Force Survey July 2025
- With the unemployment rate in Alberta increasing to 7.8% in July 2025, news outlets have been discussing the potential impacts of politics and tariffs on the province's employment sector, as the rise was largely due to a decline in full-time jobs and increased labour force participation.
- The general-news is abuzz with reports of Calgary's resilience in its job market, despite an increase in the unemployment rate to 7.7% in July, as Calgary led job creation among Canada's major cities year over year, according to the Calgary Labour Force Survey July 2025.
