P.E.I. Unemployment Surges by 1.6%: Restaurants Struggle to Hire

UPDATE: P.E.I. has just reported a staggering rise in unemployment, surging by 1.6 percentage points in September, marking the highest increase across Canada. This alarming trend comes as the national unemployment rate remains stable at 7.1%, despite Canada adding 60,000 jobs last month, according to the latest data from Statistics Canada.

The urgent situation highlights a critical issue in the province: local businesses, particularly in the restaurant sector, are grappling with hiring challenges. In downtown Charlottetown, the Tekila Mexican Restaurant is feeling the pinch. Co-owner Kevin Gallant reports, “What we’re finding is people are applying for some of the jobs, but none of them have the experience.” The restaurant is on the lookout for line cooks, wait staff, and managers, offering competitive wages that range from $17.50 to $24 per hour.

Despite receiving only 12 applications in two weeks, Gallant notes that many candidates lack the necessary skills, with a significant number coming from backgrounds unrelated to hospitality. “There’s no focus anymore on culinary arts or hospitality as much in the province,” he states, underscoring a troubling disconnect between job seekers and available roles.

The rise in unemployment is particularly concerning as Fred Bergman, a senior policy analyst with the Atlantic Economic Council, points out that the shift seems concentrated in full-time positions. He elaborates, “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?’” This sentiment reflects a broader struggle in the P.E.I. job market, where manufacturing jobs are on the decline, despite an increase in exports.

Furthermore, the construction sector appears to be a mixed bag, with significant growth in the real value of building, while education positions have also seen a decline as schools reopen in September. Bergman adds, “That’s a bit of a surprise as well,” drawing attention to the complexities of the current labor landscape.

The impact on recent graduates is palpable. Vanessa DiFalco, 26, has been job hunting for months with a degree focused on biology and sociology. “The consensus is that no matter where you are, it’s a bit stressful to look for a job,” she shares. Many of her peers are applying for roles outside their desired fields and often do not receive responses. Despite the setbacks, DiFalco remains hopeful, working flexibly as a pet sitter while seeking roles aligned with her long-term career goals.

“Everyone is very willing to give you their time and their knowledge,” she states, emphasizing the community’s support. This sentiment shines a light on the resilience of P.E.I. residents as they navigate an evolving job market.

As the province grapples with these urgent employment issues, local business owners and job seekers alike are adapting to a rapidly changing landscape. The question remains: what will be the next steps to bridge the gap between the workforce and available opportunities?

Stay tuned for updates on this developing story as P.E.I. continues to confront its employment challenges.