Labour force

According to Statistics Canada’s Labour Force Survey (LFS), the West Yellowhead region’s employment rate1 for the working age population of 15 years and older was 70.7% in 2010 and the participation rate2 was 75.9%.  By comparison, Alberta’s employment and participation rates were lower at 68.1% and 72.9%, respectively.

The region’s unemployment rate fell to an estimated 6.8% in 2010, down from 8.0% in 2009.  Alberta’s unemployment rate was 6.5% in 2010.  

Although timely labour force estimates from the Labour Force Survey (LFS) are generally not reliable for small areas such as this region3, it is clear from the LFS database that employment in the region has declined between 2008 and 2010.  Census estimates are used for the following discussions on employment estimates.

Between 2001 and 2006, the number of people employed in Alberta grew by 14.7% or by 239,800.  Over the same period, employment in the West Yellowhead region grew by an estimated 4,900 or 11.8%.  In 2006, the West Yellowhead region made up 2.4% of Alberta’s working age population (15+ years), and the region’s increase in employment between 2001 and 2006 accounted for 1.9% of all new jobs created in Alberta over that period. 

According to the 2006 census, the level of educational attainment is lower for this region than for Alberta. For the working age population of between 25 and 64 years, 31.4% had a post-secondary degree or diploma, compared with 48.1% for all of Alberta. However, the region does have a larger share holding a trades certificate: 16.8% in the region vs. 12.4% in Alberta.  23.6% of the region’s working age population did not finish high school, higher than the Alberta average of 15.4%.

Employment Insurance Beneficiaries

In 2010, 1,400 people received regular Employment Insurance (EI) benefits4 in the West Yellowhead region, a 17% decrease from the 2009 number of 1,690 5.  Over the same period, the number of EI recipients fell by 9% in Alberta.  As a result, the region’s share of Alberta EI recipients fell to 3.0%.  Between February 2010 and February 2011, the number of regular beneficiaries fell by an estimated 35% in the region.

The total number of income beneficiaries6 with both regular and special benefits, such as for sickness or parental leave, fell by 15% between 2009 and 2010.

Note: although this measure provides a useful gauge of unemployment it is an imperfect measure, as it excludes self-employed workers and individuals who were unemployed for more than 12 months.  At the Canadian level, the EI beneficiaries-to-unemployed ratio was fairly stable over time prior to the recession at between 40% and 45%. In Alberta, the ratio fell gradually during the economic boom years from more than 40% in 1996 to less than 25% in 2007 and the first nine months of 2008.  The ratio climbed to more than 40% in 2009 and was 36% in 2010.

Employment by Industry

In 2006, according to Statistics Canada’s census data, the services-producing sector in the West Yellowhead region accounted for about 61% of the total number employed.  By comparison, the service sector accounted for 72% of Alberta’s employment.

The Mining and Oil and Gas industry employed the largest number of individuals.  This industry accounted for 16% of the region’s employment in 2006, much higher than the industry’s 7% share at the Alberta level.  The region’s next largest industries were Retail Trade and Accommodation and Food Services, which accounted for 11% and 9%, respectively, of regional employment.

Between 2001 and 2006, the Mining and Oil and Gas industry had the largest employment gain (up 2,320), mainly because of increased drilling activity.  A large increase of about 700 jobs was also noted for the Construction sector.  Employment decreased by about 400 in Manufacturing (mainly forest products) and in Accommodation and Food Services.

Although estimates from the Labour Force Survey are not very reliable7 for the small regions, it would appear from the survey’s results that employment in the Manufacturing and Forestry sectors declined between 2006 and 2010.

 


1 The employment rate measures the proportion of the adult population that is employed. Employment Rate = (Employed / Population 15+)*100. High labour utilization traditionally accompanies strong economic activity.
2 The participation rate measures the proportion of the adult population that is in the labour force. Participation Rate = (Labour Force / Population 15+)*100. High labour participation is an effective indicator of the level of engagement among the working age population and traditionally accompanies strong economic activity.
3 Due to sample size problems and there not being any population control totals for non-standard geographies 
4 The number of beneficiaries receiving regular benefits excludes claimants receiving training, job creation and self-employment benefits as well as other employment and support measures benefits.
5 Some of this increase was the result of Canada’s Economic Action Plan providing beneficiaries with five extra weeks of regular EI benefits in 2009.
6 The number of beneficiaries receiving total income benefits includes both the beneficiaries receiving regular benefits and those receiving special benefits, such as for training, job creation, sickness, parental. 
7 Due to sample size problems and there not being any population control totals for non-standard geographies

Date Updated:
RDP-2493