Alberta's Economic Strain Deepens: Social Safety Net Tested as Diversification Lags

By Debra Allen

Calgary, AB – A new report from the Salvation Army paints a concerning picture of economic hardship across Alberta, highlighting rising costs, job insecurity, and a growing strain on social services. The findings, coupled with independent analysis, suggest the province is facing a complex economic challenge that demands urgent attention and a reassessment of its diversification strategies.

A Province Under Pressure

The Salvation Army’s report reveals a significant increase in demand for its services, with a 25% surge in individuals needing assistance over the past year. This coincides with data showing Alberta’s unemployment rate consistently above the national average, currently at 7.2%, and a concerning trend of stagnant wage growth. “We’re seeing more and more people, many of whom have never needed assistance before, struggling to make ends meet,” says one local social worker. “The cost of everything – housing, food, transportation – is just going up, and wages aren’t keeping pace.”

But the issue isn’t simply about stagnant wages. A deep dive into Statistics Canada data confirms a worrying trend: Alberta’s economic growth is lagging behind the national average, projected at just 1.5% for 2025 compared to the national 2.1%. This slower growth, coupled with reliance on cyclical commodity prices, contributes to increased economic vulnerability.

The Shifting Safety Net

This economic strain is translating directly into increased pressure on Alberta’s social safety net. Funding requests to organizations like the United Way have surged, and food banks across the province are reporting record levels of usage. “We’re seeing a broader range of people needing help,” explains a spokesperson for a Calgary food bank. “It’s not just those traditionally reliant on food banks; it’s working families, seniors, and even individuals with full-time jobs who are struggling with the rising cost of living.”

Analysis from Alberta Human Services reveals a 15% increase in individuals accessing social assistance programs in the past year, a clear indication that existing support systems are being stretched to their limits. The increased demand has forced organizations to prioritize resources and, in some cases, reduce the level of support they can provide. “We’re doing the best we can, but it’s getting harder and harder to meet the needs of everyone who comes through our doors,” adds the social worker.

Beyond Oil: The Diversification Challenge

Experts agree that a key component of addressing Alberta’s economic challenges is diversification—moving beyond its reliance on the oil and gas sector. However, progress on this front has been slow, and the province continues to be heavily influenced by fluctuations in commodity prices.

“The economic downturn highlighted the vulnerability of an economy so dependent on a single industry,” says an economist specializing in regional development. “While Alberta has made some progress in attracting investment in other sectors, it’s not happening quickly enough to offset the decline in the energy sector.”

Data from Industry Canada confirms that while Alberta has seen growth in sectors like technology and tourism, these gains have been insufficient to compensate for the losses in oil and gas. Moreover, the province faces challenges in attracting skilled workers and competing with other provinces and countries for investment. “We need to create a more attractive business environment and invest in education and training to develop a skilled workforce that can support a diversified economy,” the economist adds.

A Looming Crisis?

The confluence of rising costs, job insecurity, and slow economic diversification is creating a potentially unsustainable situation for Alberta. Without significant changes, the province risks a deepening economic crisis and a growing social safety net crisis.

“If we don’t address these challenges now, we could see a significant increase in poverty and social inequality,” warns a community advocate. “We need to invest in programs that support vulnerable populations, create economic opportunities, and build a more resilient economy.”

The solution is multifaceted. Increased government investment in skills training, support for small businesses, and incentives for diversification are crucial. Equally important is a long-term vision for Alberta’s economic future that prioritizes sustainability, innovation, and social inclusion.

The Salvation Army's report serves as a stark reminder that Alberta’s economic challenges are not simply abstract statistics; they are real-life struggles for families and individuals across the province. Addressing these challenges requires urgent action, bold leadership, and a commitment to building a more equitable and sustainable future for all Albertans.

The question now is whether Alberta will rise to the occasion before the strain on its economy and social safety net becomes unbearable.