The decrease in oil prices is a bonus for consumers, but for those in the oil industry, these lower prices mean higher unemployment rates. Alberta and other oil-sensitive areas of Canada are taking quite the hit. According to a report in the Globe and Mail in January 2015, the industry’s unemployment rate was 4.5 percent, but by February it jumped to 5.3 percent, and the worst is yet to come.
The Oil Shock Will Further Deteriorate the Job Market
As oil prices continue to drop, cutbacks in the oil fields will increase. Unfortunately, the job market had heavily depended on oil patches to create new jobs in the country. Without a strong oil patch, the unemployment rates are expected to increase even more for spring and summer.
To put it in perspective, here are a few statistics:
- 18,000 jobs were lost in Alberta, Saskatchewan and Newfoundland and Labrador.
- The unemployment rate in Saskatchewan went from 3.4 percent in November 2014 to 5 percent in February 2015.
Potential homebuyers are also an issue. With so many jobless individuals in the area, home owners are trying to sell their properties to avoid foreclosure. However, because buyers are steering clear of these struggling cities, homeowners are not finding much relief.
Tips for Riding Out the Oil Shock Crisis
The oil shock crisis will not last forever. As always, oil prices will eventually rise. Until then, however, residents need to find a way to survive on cutback hours or unemployment wages. One of the best ways to do so is through debt consolidation loans. A debt consolidation loan can combine multiple debts, such as credit cards and car loans into a single monthly payment. This may save consumers several hundred a month, which may be just enough to help them get by on minimal income.
Were you hit by the oil shock crisis? Whether you are looking for credit counselling in Alberta, a consolidation loan, or you need to file a consumer proposal, or a bankruptcy, the team at Faber can help. We understand how the lower oil prices have impacted the Alberta economy and the individuals employed in the oil industry. Meet with a Faber Licensed Insolvency Trustee in Alberta today for your free confidential consultation to discuss all of your options and let our experts help you ride out the storm. Call us at 1.877.944.1177 for an appointment or contact us online.