Prince Edward Island saw the sharpest increase in unemployment across Canada in September, even as the national economy added tens of thousands of jobs, highlighting the province’s ongoing struggle to match workers with available positions.
Statistics Canada’s September Labour Force Survey showed the national unemployment rate held steady at 7.1 per cent, despite the addition of 60,000 new jobs—a 0.3 per cent rise after two consecutive monthly declines. In P.E.I., however, the unemployment rate jumped by 1.6 percentage points, the largest increase in the country.
On the ground in downtown Charlottetown, businesses like Tekila Mexican Restaurant are still scrambling to hire. Co-owner Kevin Gallant has been advertising for line cooks, wait staff, and managerial positions but says the applicants simply aren’t the right fit.
“What we’re finding is people are applying for some of the jobs, but none of them have the experience,” Gallant said. His restaurant offers minimum wage plus gratuities for servers, $17.50 to $20 an hour for cooks, and up to $24 for kitchen and restaurant managers. In two weeks, he received just 12 applications, mostly for server roles, many from students and newcomers with backgrounds in fields like computer science and marketing.
“There’s no focus anymore on culinary arts or hospitality as much in the province. Less and less people are applying for jobs at restaurants,” he said, adding that the ideal candidate is someone eager to learn the trade and grow in the industry.
The challenge reflects a wider issue of skills mismatch, says Fred Bergman, senior policy analyst with the Atlantic Economic Council. He noted that employers may hesitate to hire overqualified applicants for lower-paying roles. “Maybe that’s a deterrent for an employer to hire them, because they feel, ‘Well, geez, if I paid the minimum wage plus tips, is that enough to keep them happy?’” he said.
Bergman described the rise in unemployment as surprising, pointing out that much of the decline came from full-time positions. Manufacturing jobs fell despite strong export performance this year, and construction activity remains high with strong housing starts. Even education saw an unexpected dip in employment heading into the school year.
Despite these short-term fluctuations, P.E.I.’s year-to-date employment growth remains up 1.2 per cent, and Bergman cautioned that monthly numbers should be read carefully given the province’s small sample size in the Labour Force Survey.
For job seekers like Vanessa DiFalco, 26, the labour market feels uncertain. Sitting on the University of Prince Edward Island campus, she shared how months of job searching have yet to yield a position aligned with her degree in biology and sociology. “The consensus is that no matter where you are, it’s a bit stressful to look for a job,” she said. “They’re still applying for jobs that are outside of what they want, but they’re not even hearing back from those jobs.”
While she currently works as a Rover dog walker and pet sitter, she hopes to land a role in a veterinary clinic, animal shelter, or wildlife rehabilitation center—fields that match her training and offer more stability.
Though some opportunities have fallen through, DiFalco remains optimistic thanks to mentorship from professors and community members. “Everyone is very willing to give you their time and their knowledge and their efforts if they have the resources available,” she said. “That’s what makes me excited, to hopefully be able to do that myself, when I’m in the workforce and be able to contribute to the community that P.E.I. is.”