CPABC: Recent employment growth helps lower unemployment in Northeast BC, but challenges remain
For instance, while employment was up over the past year, it remained well below 2019 levels.
FORT ST. JOHN, British Columbia, Nov. 03, 2022 (GLOBE NEWSWIRE) -- According to the BC Check-Up: Work, an annual report by the Chartered Professional Accountants of British Columbia (CPABC) on employment trends across the province, Northwest B.C’s unemployment rate was 3.8 per cent in August 2022, down from 4.8 per cent in August 2021.
“While the headline unemployment number suggests a healthy labour market, there are some concerning signals,” said Ben Sander, FCPA, FCA, partner at Sander Rose Bone Grindle. “For instance, while employment was up over the past year, it remained well below 2019 levels.”
As of September 2022, total employment in the region reached 38,200, a 5.5 per cent increase compared to September 2021. Over that period, job gains were concentrated amongst full-time positions (+10.0 per cent), while part-time positions fell (-16.1 per cent). Overall, employment remained 2.6 per cent lower than in September 2019.
Northeast B.C.’s labour participation rate – the portion of working-aged individuals actively seeking or employed – was 70.7 per cent in September 2022, up from 69.7 per cent in September 2021. However, it remained 5.4 percentage points lower than in September 2019.
“The sustained decline in labour participation is a troubling sign, as our region has relied on its robust working age population to drive the economy,” continued Sander. “It has also become a growing challenge for businesses looking to add employees, particularly in the service sector where many industries have struggled to recover. Conversely, the natural resource workforce saw significant growth.”
Northeast B.C.’s service sector employment fell to 24,000 in September 2022, a decline of 0.8 per cent compared to September 2021 and 6.6 per cent from September 2019. Employment in the hospitality industry fell 9.1 per cent over the past year and declined by a third compared to September 2019. Wholesale/retail employment also decreased by 9.6 per cent over the past year and remained 13.0 per cent lower than in September 2019.
Goods sector employment increased 14,100 in September 2022, increasing of 17.5 per cent over the past year. This was due to a significant uptick in natural resource employment, with the industry’s workforce more than doubling to 6,500 positions (+109.7 per cent). Overall, goods sector employment was up by 3.7 per cent compared to in September 2019.
“The employment data highlights that our economy still has not fully recovered. Worryingly, the region’s job vacancy rate hit a record high this year and many businesses have struggled to find enough employees to fill open positions,” concluded Sander. “To improve our economic outlook, it is critical that barriers to re-entering the labour market are minimized, and the region is marketed as an affordable and attractive place to immigrate.”
| Northeast | Sep-19 | Sep-21 | Sep-22 |
| Unemployment (%) | 6 | 5.7 | 3.8* |
| Employment | 39,200 | 36,200 | 38,200 |
| Full-time | 33,600 | 30,000 | 33,000 |
| Part-time | 5,700 | 6,200 | 5,200 |
| Participation rate (%) | 76.1 | 69.7 | 70.7 |
Learn more about the BC Check-Up: Work report. Data is from Statistics Canada Labour Force Survey, follows a moving three-month average and is not seasonally adjusted.
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About CPA British Columbia
The Chartered Professional Accountants of British Columbia (CPABC) is the training, governing, and regulatory body for over 38,000 CPA members and 6,000 CPA students. CPABC carries out its primary mission to protect the public by enforcing the highest professional and ethical standards and contributing to the advancement of public policy. CPAs are recognized internationally for bringing superior financial expertise, strategic thinking, business insight, and leadership to organizations.
For more information: Aaron Aerts, Economist 604.442.9161 [email protected]
