B.C. employment was little changed in May, but the key story remained a tight labour market as the unemployment rate fell to a level last seen in 2019.
Employment rose by 5,100 persons or 0.2 per cent from April to reach 2.74 million persons, but growth was within the margin of error. Like the national pattern, full-time employment growth far outpaced headline increases with a 26,500 (1.2 per cent) gain, which reversed two months of declines and more than offset a 3.6 per cent drop in part-time employment. Employers are lengthening scheduled hours amidst growing labour shortages and economic growth.
Net gains were led by private-sector employers (up 81,000), which partly rebounded after an April pullback, while public-sector employment slipped, and self-employed counts were unchanged. Among industries, the goods sector lifted net growth as construction employment rose by 131,000 persons or 6.1 per cent as residential and non-residential permit volumes surged in recent months amidst work on projects such as the Oakridge redevelopment, regional hospitals and the Broadway subway line. This marked an upturn from a weak pandemic period. In contrast, manufacturing employment dropped sharply (101,000 or 5.8 per cent) aligned with national trend.
In the services sector, accommodations/foodservices (up 68,000 or 3.9 per cent), information/culture/recreation (up 7,400 or 5.5 per cent) growth points to ongoing rotation to services spending, while health care/social assistance employment also rose. Weakness came in transportation/warehousing (down 143,000 or 9.4 per cent).
The unemployment rate dropped 0.9 points to 4.5 per cent to a level last seen in July 2019. While the latest decline owes mostly to a decrease in labour force participation rate, firms are clearly pinched by labour shortages. The recent Canadian Survey of Business Conditions pointed to difficulties in finding workers and the likelihood of wage acceleration. Although data can fluctuate, the trend of low unemployment is likely to persist even as economic growth decelerates amidst rising interest rates.
B.C. businesses exported goods valued at $5.72 billion to international markets in April, which was up a stellar 40.4 per cent year over year to maintain a record level of activity. This marked the largest 12- month gain since August 2021. We calculate a 14 per cent seasonally-adjusted month-to-month increase.
Exports of energy products rocketed with 188.4 per cent higher sales than the same month in 2021 to a record $2.29 billion. The persistent hike in energy prices was the main driver in energy export gains as natural gas prices doubled from a year ago. In addition to energy, metallic and non-metallic mineral products (up 22 per cent year to year), electronic and electrical equipment and parts (up 69.3 per cent), and basic/industrial chemicals, plastics and other items (up 76 per cent) were key drivers. In contrast, metal ores and non-metallic minerals (down 31.7 per cent) and forestry sales (down 4.7 per cent) were offsets.
Despite a slowdown in national import growth, B.C. continued to report steady import expansion from 2021. April’s total imports came in at $6.86 billion in B.C., up 37.8 per cent compared with last year. Seasonally adjusted, imports rose 10 per cent from March. Consumer goods continued to lead the growth in imports, reporting a 29.9 per cent year-over-year increase to $1.87 billion.
Bryan Yu is chief economist at Central 1 Credit Union.
