Strong B.C. labour market conditions persisted in March despite an uptick in the province’s unemployment rate.
B.C. employment increased by 10,500 persons or 0.4 per cent to surpass 2.73 million in March. While statistically insignificant, growth matched the Canadian performance and rose for an eighth consecutive month.
Employment rose 2.8 per cent year over year, which lagged behind the four per cent national increase. However, this reflects a smoother recovery trend compared with other provinces. Relative to February 2020, B.C. employment has increased 3.5 per cent and outpaced all other provinces.
Below the surface, performance was softer than headline figures. B.C.’s full-time employment retraced by 8,300 or 0.4 per cent but followed a sharp increase in February (2.2 per cent). In contrast, part-time employment rose 3.3 per cent. This reflects broader reopenings of gyms in February and some other high-touch services which lifted part-time work. Other sectors showing stronger growth included transportation/warehousing (9,200), and professional/scientific/technical services (5,200).
In contrast, losses were recorded in manufacturing (-6,500) and education services (-7,100).
The unemployment rate popped higher to 5.1 per cent from 4.9 per cent in February, one of only three provinces to record an increase. Metro Vancouver’s unemployment rate rose from 5.1 to 5.4 per cent.
Housing market conditions are expected to cool on higher interest rates, but strong Lower Mainland housing demand and price growth continued through March. The latest benchmark home value for the region shot up 3.8 per cent month over month to a record $1.39 million and marked a 28 per cent rise over the past 12 months.
Demand remained strong despite, or in part due to, the rising mortgage rate environment. Multiple Listing Service sales in the region reached 6,839 units. While down 24 per cent year over year, this largely reflected last year’s record high. March sales were still the third highest on record and 40 per cent higher than the same-month average from 2010 to 2019. •
Bryan Yu is chief economist at Central 1 Credit Union.
