Once an economic driver for Canada, the western province of Alberta now faces the longest recession on record. Low energy prices have devastated the petroleum industry which once made Alberta’s economy one of the strongest in the world.
Fort Mac fire cost plenty
In addition, the Fort McMurray wildfire in May cost the province $495-million. The province, which was once deficit free, now faces a deficit of almost $1.0 billion. It is likely to be $32 billion in debt by the end of this fiscal year.
Jobs have disappeared
Many Canadians had moved from other parts of the country to take jobs in Alberta. But over the past year, nearly 50,000 jobs have been lost. The unemployment hit 8.6 per cent in July and is expected to average eight per cent for the rest of the year.
It is not easy for people to move back to their home provinces. Many would have bought homes which could now be difficult to sell and the distances are often great. But some people are leaving.
Pawn shops busy
The public broadcaster CBC ran a report about pawn shops filling with luxury items as people fallen on hard times have traded goods for cash.
Some of Alberta’s other industries are benefitting from the low value of the Canadian dollar. There has been some growth in agriculture, forestry and tourism.
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