B.C.’s labour market further improved in February as employment bounced to a level just shy of pre-pandemic levels and the unemployment rate plunged.
Total employment rose 1% (26,600 persons) to a seasonally adjusted 2.62 million persons in February, following gains of 0.1% in each of the previous two months. Part-time employment rose 4.1% (22,600 persons) to contribute about 84% of the gain. Full-time employment nudged higher by 0.2%. Similar growth was observed in Metro Vancouver and the rest of the province.
Countrywide, employment bounced back 1.4% after a sharp prior-month decline when various provinces tightened social and business restrictions in response to rising COVID-19 counts.
B.C. industry gains aligned with broad improvements in the economy. Services-sector employment rose 1.7% with notable gains in retail/wholesale trade (up 3.8%), professional/scientific/technical services (up 3.0%), education (up 5.1%) and other private services (up 7.4%). Accommodations/foodservices showed no improvement during the month, which contrasted with rebounds elsewhere in the country. Broadly, goods-producing sectors contracted, led by a rollback in manufacturing employment of 3.8%.
With the latest increase, employment was only 0.6% shy of pre-pandemic year-ago levels, compared to 3.1% nationally. That said, slack persists. Full-time employment was down 1.6%, but partly offset by a 3.2% part-time gain. Total hours worked were 5.5% lower than a year ago. B.C.’s unemployment rate fell to 6.9% in February from 8% amid job gains and a flat labour force, but was still shy of the 5.1% rate posted a year ago.
Further recovery is expected as vaccine deployment helps to mend hospitality and tourism sectors in coming quarters, while construction jobs will rise with increased housing starts and major-project work.
With an exit to the pandemic in view and businesses planning for the eventual return to normalcy, investment spending is expected to play a key role in driving economic growth. Economic prospects in the U.S. and Canada have improved with vaccine deployment, fiscal spending measures, and a low interest rate environment.
The latest data for B.C. pointed to flat capital expenditures in 2020, which was stronger than expected. •
Bryan Yu is chief economist at Central 1 Credit Union.
