P.E.I. Job Market Struggles Amid Rising Unemployment Rate

UPDATE: P.E.I.’s unemployment rate has surged by **1.6 percentage points** in September, marking the **largest increase** in Canada. As the province grapples with hiring challenges, local businesses are feeling the pinch, especially in the hospitality sector, where demand is high but qualified candidates are scarce.

According to **Statistics Canada**, Canada added **60,000 jobs** in September, reflecting a **0.3 percent** increase after two months of declines. However, the national unemployment rate remains steady at **7.1 percent**, indicating a growing pool of job seekers. In **downtown Charlottetown**, Tekila Mexican Restaurant is among those struggling to fill critical positions.

Co-owner **Kevin Gallant** has highlighted the difficulty of attracting qualified applicants. “What we’re finding is people are applying for some of the jobs, but none of them have the experience,” he stated. The restaurant is currently looking for **line cooks, wait staff**, and both a **kitchen and restaurant manager**, offering competitive wages ranging from **$17.50 to $24 per hour**, plus gratuities for servers.

Despite receiving **12 applications** in the past two weeks, most candidates lack relevant experience. Gallant notes that many applicants are immigrants with backgrounds in unrelated fields, such as **computer science** or **marketing**. “There’s no focus anymore on culinary arts or hospitality as much in the province,” he lamented. The challenge of finding employees who are eager to learn and excel in the restaurant business is a growing concern for Gallant and others in the industry.

This disconnect between qualifications and entry-level roles is further emphasized by **Fred Bergman**, a senior policy analyst with the **Atlantic Economic Council**. He remarked, “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?’”

The rise in P.E.I.’s unemployment has surprised many, particularly as certain industries are witnessing job declines. Bergman noted that while **manufacturing jobs** have decreased, the real value of building construction on the island is “way up,” along with housing starts. Additionally, there was an unexpected decline in education-related employment as schools reopened in September.

Despite the recent spike, P.E.I.’s year-to-date employment growth remains promising, with an increase of **1.2 percent**. Bergman emphasizes that long-term trends are more reliable for smaller provinces like P.E.I., given that the Labour Force Survey uses a small sample size.

On the job-seeking front, **Vanessa DiFalco**, a **26-year-old** graduate with a degree in arts and sciences from **UPEI**, has been actively searching for work for several months. Like many of her peers, she is feeling the stress of job hunting. “The consensus is that no matter where you are, it’s a bit stressful to look for a job,” she shared. DiFalco has been applying for roles outside her field but is often met with silence.

While she works as a rover pet sitter and dog walker, she aspires to find a position within a vet clinic or animal shelter that aligns with her long-term goals. DiFalco remains optimistic, noting, “Everyone is very willing to give you their time and their knowledge and their efforts if they have the resources available.”

As the job market continues to shift, both employers and job seekers in **P.E.I.** face significant challenges. The urgent need for qualified candidates in a thriving industry underscores the complexities of the region’s employment landscape.

What’s next? Employers will need to adapt their hiring strategies to attract talent, while job seekers must navigate a competitive landscape where relevant experience is increasingly essential. All eyes will be on the upcoming months as the province seeks solutions to bridge this growing employment gap.