B.C.’s economy continued to add jobs at a robust pace in February.
Provincial employment increased by 21,000 persons (0.8 per cent) from January. While this increase lagged behind the 1.8 per cent national gain, the drag of Omicron on B.C. in January was limited by lighter restrictions. B.C. employment now exceeds pre-pandemic 2020 by 3.2 per cent, marking the strongest performance among provinces.
Underlying headline growth were strong details. Full-time employment spiked by 2.2 per cent in the latest month as part-time counts fell 4.2 per cent, suggesting Omicron-related restrictions caused employers to reduce hours in January, rather than lay off workers in a tight labour market.
Gains were modest but positive in most industries and led by manufacturing (+5,400 or 2.9 per cent), professional/scientific/technical services (+10,900 or 4.5 per cent), and educational services (+8,800 or 4.5 per cent). Hospitality employment rose a modest 4,200 (2.4 per cent), but likely driven by a more significant portion of hours worked. Sectors experiencing significant losses include building and business support (7,800 or 8.2 per cent) and public administration (-3,300 or 2.3 per cent).
Metro Vancouver hiring outpaced the rest of the province with growth of 17,700 persons or 1.2 per cent.
The broad environment for B.C.’s labour market remains tight. At 4.9 per cent, the average unemployment rate has declined to the lowest level since January 2020, while recovery in both participation and employment rates point to a labour market at capacity. Metro Vancouver unemployment sat at 5.1 per cent of the labour force. While employment in industries like hospitality remain below pre-pandemic levels, this partly reflects a shuffling-out of the workforce into other high-growth sectors through the pandemic and aligns with high job vacancy rates. These sectors will need to rely on increased automation or hike wages to adapt to this new reality. Broadly, economy-wide average hourly wages are trending at about 3.2 per cent year-over-year.
Canadian merchandise trade disappointed to start to 2022 as dollar-volume exports held flat while imports declined sharply. Supply chain factors continued to drag on the production and shipments of motor vehicles and parts, both to and from the country, aircraft and other electronics. •
Bryan Yu is chief economist at Central 1 Credit Union.
