Labour force

According to Statistics Canada’s Labour Force Survey (LFS), the Wood Buffalo region’s employment rate¹ for the working age population of 15 years and older was 80.6% in 2010 and the participation rate² was 84.7%.  By comparison, Alberta’s employment and participation rates were much lower at 68.1% and 72.9%, respectively. 

The region’s unemployment rate was 4.8% in 2010, down from 2009’s rate of 5.2%.  Alberta’s unemployment rate was 6.5% in 2010. 

Between census years 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 Wood Buffalo region grew by an estimated 8,515 or 29.6%, the largest increase of all regions.  In 2006, the Wood Buffalo region made up 1.6% of Alberta’s working age population (15+ years). 

Between 2006 and 2010, the region’s working age population (15+) increased by about 12,000, while employment increased by more than 9,000 as a result of rapid growth in the oil sands sector.

In 2010, the number of people employed in Alberta declined by 0.4% or by 8,600, after a 1.4% decline in 2009, due to the global recession.  Employment levels in the Wood Buffalo region have increased steadily since 2006 and increased by an estimated 3,300 in 2010.  In 2010, the Wood Buffalo region made up 1.9% of Alberta’s working age population (15+ years), compared with the region’s 1.6% share in 2006. 

 According to the 2006 census, for the working age population of between 25 and 64 years, 42.9% had a post-secondary degree or diploma in the region, compared with 48.1% for all of Alberta.  However, the region does have a much larger share holding a trades certificate: 20.5% in the region vs. 12.4% in Alberta.  14.9% of the region’s working age population did not finish high school, comparable to the Alberta average of 15.4%.

Employment Insurance Beneficiaries

In 2010, 730 people received regular Employment Insurance (EI) benefits³ in the Wood Buffalo region, a 4% decrease from the 2009 number of 760 ⁴.  Over the same period, the number of EI recipients fell by 9% in Alberta. The region’s share of Alberta EI recipients remained at 1.5%.  Between February 2010 and February 2011, the number of regular beneficiaries fell by an estimated 2% in the region.

The total number of income beneficiaries⁵ with both regular and special benefits, such as for sickness or parental leave, increased by 1% 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 Wood Buffalo region accounted for about 54% 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 30% 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 Construction and Retail Trade, which accounted for 12% and 9%, respectively, of regional employment.

Between 2001 and 2006, the Mining and Oil and Gas industry had the largest employment gain (up 2,640), mainly because of increased oil sands production.  A large increase of nearly 1,000 jobs was also noted for the Construction sector.  The Wood Buffalo region is the only Alberta region with employment gains in all major sectors between the two censuses.

Although industry specific estimates from the Labour Force Survey are not very reliable⁶ for the small regions, it would appear from the survey’s results that the Oil and Gas sector (mainly oil sands extraction) has increased its employment level between 2006 and 2010.  Large employment increases were also noted for the Retail Trade and Accommodation and Food Services sectors.

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^{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 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.
4 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 and 2010.
5 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. 
6 Due to sample size problems and there not being any population control totals for non-standard geographies}

Date Updated:
RDP-2494