Employment in Alberta declined in August even as the province’s unemployment rate moved lower, according to new Statistics Canada figures.

The number of people working in Alberta fell 0.3 per cent from July to 2.661 million on a seasonally adjusted basis.

Alberta’s unemployment rate decreased to 6.8 per cent from 7.0 per cent. A lower unemployment rate alongside lower employment can occur when fewer people are participating in the labour market or actively looking for work.

The provincial figures were part of a national report showing Canadian employment fell by about 42,000 in August. The decline followed a gain of about 75,000 jobs in July.

Canada’s unemployment rate remained at 6.4 per cent, its lowest level in two years, while the employment rate declined 0.1 percentage points to 60.8 per cent.

The national labour force also contracted for the first time since February. Statistics Canada measures the labour force as people who are employed or actively seeking work.

Most of the August employment decline was in full-time work. Full-time positions decreased by about 36,000 and part-time employment fell by about 6,000.

Service-producing industries accounted for the largest losses. Business, building and support services and wholesale and retail trade were among the areas reporting declines.

Employment among Canadians aged 15 to 24 fell by about 19,000. The youth unemployment rate rose 0.3 percentage points to 12.9 per cent after improving during the previous four months.

Permanent employees earned an average of two per cent more per hour than a year earlier. That was down from three per cent annual wage growth in July and was the slowest pace outside the pandemic period in more than seven years.

The report covers labour-market conditions during the week of Aug. 9 to 15. Monthly figures can move sharply and are subject to later revision, so the trend over several months provides more context than a single reading.

For Alberta businesses, the decline arrives as exporters and importers prepare for another round of Canadian and U.S. tariffs. Trade-exposed sectors could face changes in orders, input costs and staffing as the measures take effect.

Rural communities can experience the labour market differently from Calgary and Edmonton. Agriculture, energy, construction, health care and local services each follow different seasonal patterns, while smaller labour markets can be more sensitive to a major employer’s hiring decisions.

The provincial unemployment rate does not show how conditions vary across east-central Alberta. Statistics Canada publishes regional rates as three-month moving averages because monthly samples in smaller areas are limited.

The August report also follows temporary hiring earlier in the summer connected to the census and the soccer World Cup. Across Canada, employment had increased by about 181,000 from April through July before the August decline.

The next labour-force report will show whether August marked a short pause after summer hiring or the beginning of a broader slowdown.

Workers and employers will also be watching interest-rate decisions. Weaker hiring can reduce pressure for higher borrowing costs, while rising energy and food prices can keep inflation concerns alive.

Alberta’s August unemployment rate remained above the national rate but was lower than it had been in July. The province’s employment level remained above 2.6 million.