Alberta employment rises sharply in January as job market tightens

Alberta’s labour market began 2026 on strong footing, with employment rising sharply in January and the province’s unemployment rate falling below the national average, according to new data released Friday by Statistics Canada.

The Labour Force Survey shows 2.65 million Albertans were employed in January, up 20,300 jobs, or 0.8 per cent, from December. Compared with January 2025, employment increased by 86,400 positions, a gain of 3.4 per cent.

The unemployment rate fell to 6.4 per cent, down 0.3 percentage points from the previous month and below the national rate of 6.5 per cent. Alberta’s labour force grew by 13,300 people in January, while the number of unemployed declined by 7,100.

Full-time work drove the monthly gains. Full-time employment rose by 41,800 positions, while part-time employment fell by 21,400. On a year-over-year basis, full-time employment was up by 102,100 jobs, while part-time employment declined by 15,700.

Employment growth was strongest among the self-employed, which increased by 24,700 jobs month over month. In contrast, employment edged down in the private sector by 1,700 positions and in the public sector by 2,600.

By industry, construction recorded the largest employment increase in January, adding 9,200 jobs. Gains were also reported in finance, insurance, real estate, rental and leasing (+6,200) and health care and social assistance (+5,500).

These increases were partly offset by declines in professional, scientific and technical services (−4,100); forestry, fishing, mining, quarrying, oil and gas (−3,400); and transportation and warehousing (−2,400).

Other key labour market indicators pointed to continued strength. Alberta’s participation rate rose to 69.0 per cent, up 0.2 percentage points from December, while average weekly wages increased to $1,419.21, up 0.4 per cent month over month and three per cent compared with a year earlier.

Among major urban centres, the three-month moving average unemployment rate fell to 6.8 per cent in Edmonton and 6.7 per cent in Calgary.

Indigenous labour market conditions also improved on a year-over-year basis. The unemployment rate for Indigenous peoples living off reserve in Alberta was 8.9 per cent in January, up slightly from December but down 5.3 percentage points from the same month last year.

Employment gains among Indigenous Albertans were concentrated among men aged 15 to 24 and women aged 55 and older, while declines were recorded among younger women and men aged 25 to 54. Month over month, employment increased most in educational services, finance and real estate, and transportation and warehousing.

Statistics Canada noted that historical Labour Force Survey data were revised in January, which may result in minor changes to previously published figures.

The full reports are available through the Government of Alberta’s Labour Force Highlights and Indigenous Labour Force Highlights publications.