Lethbridge CMA approaching ‘toxic unemployment’ threshold: economic experts

Workers are wanted and needed in Lethbridge.

According to Lethbridge Construction Association executive director Erin Low, the commercial building sector is struggling to find trained employees after COVID-19 enlarged employment gaps.

“What we’re finding is that our industry needs trades that already have the skills and can come in and do the work without the supervision, because they’re just spread so thin they don’t have the capability to supervise all of the new hires right now,” Low said.

Problems hiring qualified labour could become more common in the region.

The latest unemployment rate for the Lethbridge census metropolitan area is 3.5 per cent.

That’s approaching the two to three per cent rate Economic Development Lethbridge CEO Trevor Lewington calls “toxic unemployment.”

“That, of course, is a little bit of a scary word but all it means is that there’s not enough movement in the workforce that employers are actually really struggling to find the people that they need,” Lewington said.

The Lethbridge CMA’s unemployment rate is at its lowest point since November 2014.

According to Lewington, falling even further could create a drag on the economy.

1:57 Economic challenges and goals similar for Lethbridge and Great Falls

“You have restaurants that may not be able to fill all of their tables… (or) manufacturers that can’t produce to full volume because they simply don’t have enough labour to make that happen,” Lewington said.

The construction industry is trying to resolve its hiring issues. Low sees more workers beginning apprenticeships.

“We have seen an increase in the (Registered Apprenticeship Program) students coming back into the programs and into the schools,” Low said.

But the unemployment rate remains a concern for local businesses.

“Lethbridge is certainly leading the way from a job growth perspective,” Lewington said.

“But again, that’s a bit of a scary trend. If we continue to go lower, we can expect a little more pain for employers trying to fill those spots.”

Tweet This Click to share quote on Twitter: "But again, that's a bit of a scary trend. If we continue to go lower, we can expect a little more pain for employers trying to fill those spots."

Lewington added that attracting new Canadians, retaining young talent and exploring new technologies will be important for offsetting a thinning labour force.