Job numbers disappointing, but oil and gas growth expected in 2020: Kenney

Unemployment rate in Alberta rose to 7.2 per cent from 6.7 per cent last month

Alberta Premier Jason Kenney speaks at the Rural Municipalities of Alberta conference in Edmonton Alta, on Friday November 15, 2019. Premier Jason Kenney says the latest job numbers from Statistics Canada are disappointing, but says he expects the situation will soon be turning around in Alberta. (JASON FRANSON / THE CANADIAN PRESS)

The latest job numbers from Statistics Canada are disappointing, said Alberta Premier Jason Kenney, but he’s expecting the situation will soon turn around.

The agency reported that Canada lost 71,200 jobs last month and the unemployment rate rose four-tenths of a percentage point to 5.9 per cent.

In Alberta, the unemployment rate rose to 7.2 per cent from 6.7 per cent. Jobs fell by 18,000, led by wholesale and retail trade.

In Edmonton, unemployment went up to 7.7 per cent from 7.1. In Calgary, it fell slightly from 7.2 per cent to 6.9.

“We’re always disturbed to hear about any job losses in the economy,” Kenney told reporters Friday.

“We took over an economy in Alberta here that I think was basically in recession and had gone through a four-year job crisis, and I always knew we were not going to be able to turn that around overnight.”

READ MORE: Economy lost 71,200 jobs in November, unemployment rate climbs to 5.9%

The United Conservative premier, elected in April, said the critical problem is bottlenecks in getting Alberta oil to market via pipeline or rail, forcing the province to dictate curtailment on production to keep the price from plummeting.

He expects that will soon be changing, that more oil will be getting out the door in 2020, which he said will lift not only the industry, but also the broader economy.

“I believe we are going to reach a turning point in 2020.”

The Trans Mountain pipeline expansion to the British Columbia coast is underway, and Kenney noted there’s progress on the Enbridge Line 3 project from Alberta to Wisconsin.

Industry incentives will also see more oil shipped by rail, he said.

“I’m confident that we will be up several hundred thousand barrels of egress, so we should not need curtailment any longer (by) this time next year.

“We should be producing and shipping more oil than ever, and that should help incent additional investment.”

Opposition NDP trade critic Deron Bilous said the numbers show Kenney is taking the economy in the wrong direction by cutting public sector jobs and services to balance the budget, while reducing corporate income tax with no obvious benefit to jobs numbers.

“Their plan is failing,” Bilous said. “It’s more clear than ever that Premier Kenney and the UCP’s risky experiment to hand over billions of dollars to corporations has failed Albertans.”

READ MORE: Canadian economy lost 1,800 jobs in October, unemployment rate steadies

It was the second sobering economic announcement for Alberta this week.

On Tuesday, Moody’s Investors Service downgraded the province’s rating to Aa2 stable from Aa1 negative, citing concerns over its reliance on non-renewable resources — mainly oil.

It also warned that Alberta has a high “environmental risk,” with its carbon intensive oil and gas sector leaving it susceptible to costly wildfires and floods.

Kenney said Friday he doesn’t believe analysts are giving Alberta due credit for progress reducing its environmental footprint.

In a radio interview on Calgary’s CHQR on Wednesday, Kenney also said the Moody’s report is symptomatic of a broader politicized fight.

“Increasingly, financial institutions — and this includes apparently Moody’s — are buying into the political agenda emanating from Europe, which is trying to stigmatize development of hydrocarbon energy,”Kenney said.

“And I just think they are completely, factually wrong.”

Bilous urged Kenney to use the Moody’s report to take off ideological blinders, diversify the economy and stop trafficking in “environmentalist conspiracy.”

Dean Bennett, The Canadian Press

READ MORE: Canada adds 66,800 net new jobs in January, but unemployment rate ticks higher

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Revenue Canada, RCMP don’t accept Bitcoin: police

RCMP issue Bitcoin warning posters

Mat program not quite ready to open its doors

Committee hopes to bring people out from the cold with overnight shelter program

Ponoka County writes off quarter of a million in taxes

Bankrupt energy companies hitting county financially

Rebels fight back from 3-1 Raider lead to win 4-3 in shootout

Two goals by Zak Smith key to Rebels comeback

‘Extensive’ work planned at Big Bar landslide ahead of salmon, steelhead migration

Fisheries Minister Bernadette Jordan visited the site of the slide from June

Royal deal clears way for Harry, Meghan part-time Canada move: experts

Keith Roy of the Monarchist League of Canada said the deal is exactly what Harry and Meghan asked for

PHOTOS: Eastern Newfoundland reeling, search underway for missing man after blizzard

More than 70 centimetres of new snow fell overnight, creating whiteout conditions

Prince Harry, Meghan to give up ‘royal highness’ titles

‘Harry, Meghan and Archie will always be much loved members of my family,’ says Queen Elizabeth II

RCMP Major Crimes Unit lays charges in Stettler death

Nicholas Climb Johnson, 32, of Stettler is charged with second degree murder in the death of his father

‘Manny’s Motel’ badly damaged by fire Jan. 15

Police say 40 Ave. closed due to fire, use alternate route

Most Read