B.C.’s labour market was surprisingly firm in January with 4,200 more people (0.2 per cent) working compared with December, contrasting with a one per cent loss nationwide.
With a sixth straight increase, employment moved 2.4 per cent above pre-pandemic levels marking the strongest rebound among provinces. The increase occurred despite tougher health restrictions enacted during December’s second half to stem the spread of Omicron.
Metro Vancouver lagged behind the provincial performance in January as employment fell 12,800 persons or 0.8 per cent.
Industry data pointed to further expansion in the services-oriented sector, contrasting with national patterns. Services added 7,000 jobs (0.3 per cent). Finance/insurance/real estate continued to expand on housing market strength.
Sectors supporting building services fell by 5,500 persons (5.5 per cent), reflecting a pause in return to offices. Goods-sector employment underperformed as fewer people were employed in agriculture (-13 per cent), suggesting an impact of flooding on activity, and construction (-0.9 per cent).
The unemployment rate fell from 5.4 per cent to 5.1 per cent, which was the lowest among provinces and marked the first dip below the level observed in February 2020.
January’s performance bodes well for the post-Omicron recovery. A tight labour market in the province means firms are holding on to employees amid short-term shocks rather than lose employees to other sectors/firms.
Lower Mainland home prices continued to explode in January, reaching an average of $1.26 million, as prospective buyers remained in a frenzy to secure properties in advance of expected hikes to interests and mortgage rates and scant availability of inventory.
Multiple Listing Service home sales reached 3,578 units in January. While outdone by last year’s record high, demand remained exceptionally strong, outpacing the 10-year January average by 38 per cent with a positive trend since August. Despite alarming affordability erosion, sales remain supported by high pandemic-era savings, increased demand for space, ultra-low variable interest rates and speculative demand. The latter reflects not only investors who are making up a greater share of the market, but also by end-use buyers in fear of being priced out of the market and rushing to lock in existing rate commitments. •
Bryan Yu is chief economist at Central 1 Credit Union.
