B.C.’s labour market remained steady in November as the economy continued to add jobs while remaining relatively tight.
Total employment rose by 4,600 persons (or 0.2%) from October. While insignificant, the trend remained positive. Relative to February 2020, employment is up 2.1% compared with about 1% nationally, and B.C. had the strongest relative performance among provinces.
B.C.’s unemployment rate remained unchanged at 5.6% compared with 6% nationally, which narrowed the gap considerably. Only Manitoba (5.1%) and Saskatchewan (5.2%) recorded lower rates.
While the headline numbers remained relatively solid, some of the underlying data was soft. November employment growth largely came in the part-time sector (1.6%) as full-time employment remained unchanged. Total hours worked in the province decelerated to 3.2% year over year from 8% in October, while monthly hours slipped on a seasonally adjusted basis, suggesting slowing of momentum, although availability of labour may be holding back hiring. Job vacancy data suggests B.C.’s labour market is the tightest among provinces.
On the industry front, goods-employment fell by 1% (5,000 persons) with declines across sectors outside the manufacturing sector. Construction employment fell by 9,500 persons. Services employment expanded 0.4% (9,600 persons), lifted by hospitality (up 5,600 persons or 3.2%) and ongoing strength in professional/scientific/technical services (up 7,900 persons or 3.3%). In contrast, public administration shed employees, which was a key drag.
Economic recovery will continue to support employment through 2022, driven by international tourism and higher immigration. That said, uncertainty persists given the Omicron variant on restrictions to travel, while short-term employment could take a hit due the B.C. floods, although rebuilding efforts will lift infrastructure related employment. Wage growth will likely pick up steam given labour market tightness.
Lower Mainland housing demand looks to have accelerated in November. Buyers found themselves racing against the clock in advance of repricing their pre-approved mortgage rates and future hikes, while more sellers chose to list to take advantage of high prices. •
Bryan Yu is chief economist at Central 1 Credit Union.
