The drop in oil prices has proven to be more dramatic and
prolonged than many experts expected. Hope for a quick recovery is
now extinguished, as the impact of low energy prices continues to
spread across many sectors of the Alberta and Canadian economy.
This has economists warning that Alberta is likely in the midst of
its longest and deepest economic slump since the early 1980s.
As a result, 2016 is expected to be the worst job market
Albertans have seen in decades. In January, Alberta's
seasonally adjusted unemployment rate was 7.4%, the highest it has
been since 1996, and the first time it has been above the national
rate since 1988. Experts predict a further contraction of the
Alberta economy through the first half of 2016, leading to more
layoffs and further increases in the unemployment rate.
