Alberta's economy is mostly dependent on the oil and gas industry and the economic spin-offs from those resources. There’s usually no happy medium; it’s either boom or bust. For the most part, Albertans are accustomed to the roller coaster and can bounce back. Typically, the downturns are short-lived, lasting one year and rebound just as fast as they start. However, the slump we are experiencing now has far outlived any others in twenty-plus years. Current concerns on the minds of Albertans is the very shaky future ahead.
Looking back on the history of Alberta’s economic crisis and the unemployment rates paint a bleak picture of what may be in store for the next year or more. Economists deemed the recession in 1982-83 one of the worst, but by comparison, 2020 has exceeded those statistics. Going from the current year back to almost 30 years, Alberta has gone through five significant downturns. When comparing the unemployment numbers, it appears we may not climb out of this for some time. According to Statistics Canada, at the start of the recession in 1982 - 83, Alberta’s unemployment rate hit an all-time high of 12 percent. The economic slump lasted two years before rebounding. In 1986, world oil prices dropped drastically, and once again put the province’s unemployment rate at 8.6 percent. Another significant impact on Albertans occurred over two years in 2008 due to the stock market crash, causing a substantial financial crisis worldwide. The impact was felt across the nation, but Alberta’s unemployment faired surprisingly well. In 2008, the rate was consistent at around 4.2 percent. The full effects weren't felt until 2009, when the rate almost doubled to 7.2 percent. Jumping ahead was another decline that lasted just over two years. From the end of 2014 until 2016, many companies were brought to their knees by the global oil market crash. It was a long-drawn-out period in which many service companies across the province suffered the fallout and closed their doors. Despite all the equipment that went up for sale, the unemployment rate remained between seven and nine percent.
After dragging the bottom for the past five years, the Alberta economy has not recovered. It took a monumental blow for the first time in history when oil price dropped into the negatives. Combine that with the current pandemic and the U.S Presidential election, Alberta is heading into unchartered territory for 2021 and beyond. As for the energy sector, according to CAODC, only 41 drilling rigs are currently active throughout Alberta as producers are pulling back on production. The unemployment rate topped out at 15.5 percent in June and as of November 4 decreased to 11.7 percent.
Vicki Winger, Local Journalism Initiative Reporter
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