Jobs Minister Brenda Bailey says B.C. remains an “economic driver” in Canada, but acknowledges the latest job numbers represent a “mixed big” as provincial unemployment rose by 0.3 per cent to 5.5 per cent in March.
This figure places B.C. below the national unemployment rate of 6.1 per cent and within the figures of the last five months ranging from a low of 5.2 per cent to 5.5 per cent.
“Often, these (Labour Force Survey) numbers are a mixed bag and there is good news in here and some bad news in here,” Bailey said of the March numbers.
The good news include the addition of 10,300 people working in health care and social assistance.
Year-over-year, the sector added some 50,000 new jobs. This trend has been unfolding against the backdrop of an aging B.C. increasing the demand for health care workers, and policies designed to attract more workers into the sector.
Employment in construction, meanwhile, rose marginally in March 2024, likely a reflection of winter weather, but also still-high interest rates discouraging investments. Looking year-to-year, construction employed about 18,000 fewer people in March 2024 than in March 2023.
“I don’t have the specific cause-and-effect relationship with construction (in March), but I am glad to see it is in the positive, although I would like to see it larger,” Bailey said in pointing in various programs to help increase the future supply of trades. “I don’t have the exact details on the cause-and-effect in regards to interest rates, but I think your hunch is probably right.”
Bailey expects construction job numbers to pick up.
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Meanwhile, information, culture and recreation, and accommodation and food services lost a combined 11,000 jobs. Bailey said changes making alcohol available at wholesale rather than retail prices could help. That can make a significant difference for restaurants, whose profit margins are higher for alcohol.
She also expects the accommodation and food services sector to improve with higher exemptions from the Employers Health Tax and the upcoming run of major events including this year’s Taylor Swift concert in Vancouver and next year’s FIFA Men’s World Cup.
Declining employment in accommodation and food services could also be reading as people curtailing spending in the face of inflation.
“It’s absolutely true that people are experiencing the pinch of cost of living right now,” Bailey said. “That’s very likely to be a factor, because folks are watching their pocket books.”
This is one of reason why government has launched a series of affordability measures, Bailey said, particularly in housing.
“When you are paying such a significant percentage of your income to either rent or mortgage, it doesn’t leave a lot for everything. So the working we are doing in housing is just so pivotal.”
