Alberta has led Canada in job creation this year, but the gains have not been driven by the energy sector, which is the province's traditional economic engine, RBC Economics said in a Thursday note.
Instead, employment growth has been concentrated in health care, social assistance and public administration, reflecting rising demand for essential services following years of rapid population growth, said the bank.
Employment increased by roughly 79,000 positions year over year in June, a 3% gain that ranked among the strongest provincial performances in Canada. Nearly three-quarters of the increase came from full-time jobs, led by a 55,000 rise in health care and social assistance employment.
Despite strong oil and natural gas production and export demand, energy-sector employment has remained largely unchanged, as automation and productivity gains have supported higher output without a significant increase in hiring.
"The energy sector continues to benefit from strong production and robust demand for exports, but hiring in the sector remains largely unchanged," wrote RBC Economist Salim Zanzana in the note.
Strong health-care hiring reflects Alberta's rapid population growth, which added more than 570,000 people between the second quarter of 2022 and the second quarter of this year. The population surge boosted demand for essential services while temporarily lifting unemployment as labor force growth outpaced job creation
The labor market imbalance is easing as population growth and migration pressures moderate, added RBC. While job gains may slow, demand for health care and public service workers is expected to remain resilient as demographic trends continue to shape Alberta's economy.