Supporting Young Oil and Gas Workers in Alberta: Lessons from Just Transition
January 19, 2023
Executive Summary
Young oil and gas workers in Alberta were significantly affected by job losses in the aftermath of the 2014 crash of the price of oil and the economic downturn that followed. Structural changes in the oil and gas sector render it unlikely that they will be able to return to employment in that sector. However, they continue to face a tough labour market situation despite the availability of a range of programs and services in Alberta’s employment services system. Indeed, the unemployment rate for young men under 25 years of age reached 19.4% in late 2019. As such, this study examines policy options to improve the effectiveness of that system. It takes a bottom-up approach, informed by the concept of Just Transition, to ensure that the perspective of young oil and gas workers and what will be most effective for them, are the basis of analysis.
A review of studies surveying existing evaluations of government active labour market policy interventions from across the world found that such measures, including those available in Alberta, generally have positive impacts. They show that training and private sector employment incentives have greater impacts, particularly over the medium and longer term, compared to job search assistance. However, research also demonstrates that interventions to support young workers are limited in situations of high unemployment rates. Such measures are unable to overcome the widespread lack of demand for young workers in such contexts, as firms seek to retain and hire more experienced workers.
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