An economic roundtable of business leaders feel a key to continuing a positive growth trend in the Thompson-Okanagan economy in 2014 will be the ability to attract skilled labour to the region, says a report by the Chartered Professional Accountants of BC.
Called the CPABC Regional Check-Up, the report was derived from the roundtable conference held earlier this month at the Quails’ Gate Estate Winery in West Kelowna.
“In 2014, our region’s economy improved due to population growth, increased tourism, continued strength of the forestry industry, and an improved U.S. economy,” said Karen Christiansen, moderator of the conference and a partner at the MNP LLP accounting firm office in Kelowna.
“Our population grew by 1.4 per cent last year, and this increase in population, along with better employment opportunities, helped stimulate business activity.”
According to the report, 2014 improvements in the Thompson-Okanagan labour market included an increase in employment by 2,400 jobs, a 1.0 per cent increase compared to 2013, due to increases in employment opportunities in the service sector; and a decline in the unemployment rate from 7.0 to 6.3 per cent.
However, educational attainment of the region’s labour force fell by 0.9 percentage points to 62.9 per cent, which is 5.2 percentage points below the provincial average.
“As our economy continues to grow, a primary challenge will be attracting and retaining skilled labour to meet our business needs. Industries across our region are finding it difficult to hire skilled labour at a competitive wage rate, and this is especially true in Kelowna, given our cost of living has been steadily increasing,” said Christiansen.
“Participants from our roundtable believe our region provides many opportunities, but also faces challenges, and promoting the Thompson-Okanagan as an attractive place to live is not enough to attract skilled talent. By leveraging what is happening in Alberta, marketing the diversity of our economy, and positioning our region as the hub of Interior B.C. we can help people better understand the benefits of relocating and working here.”
Residents in the region also appear to be better off as the rate of consumer insolvency fell for the fourth consecutive year, dropping by 8.1 per cent to 3.4 consumer insolvencies per 1,000 adults. Consumer insolvency happens for many reasons, including business failure, unemployment, low savings, and poor money management, and are closely tied to the economic health of the region. This indicates that fewer residents in the region are encountering financial hardships that require them to seek a consumer proposal or declare personal bankruptcy.
The report also highlighted the following:
• Housing sales were up 8.7 per cent and new housing starts increased by 25.4 per cent.
• The youth unemployment rate increased by 0.1 percentage point to 9.7 per cent, which is a result of significant growth in the youth labour force that outweighed career opportunities available for this age group.
• The rate of consumer insolvency fell for the fourth consecutive year, dropping by 8.1 per cent to 3.4 consumer insolvencies per 1,000 adults.
Other participants in the CPABC Regional Check-Up Economic Roundtable included Heather Banham, dean of the Okanagan College School of Business; Justin Bierwirth, vice-president, finance and accounting, Argus Properties; Amanda Burns, vice-president finance and CFO of Sun-Rype Products; Meryle Corbett, director of finance and CFO, KF Aerospace; Warren Everton, CFO of BC Tree Fruits Cooperative, David McFadden, owner of the Okanagan Lavender & Herb Farm, Pilar Portella, CEO of Accelerate Okanagan; Linda Shumay, CFO of Bacas Holdings; and Trevor Tremblay, vice-presdident, finance, Interior Savings Credit Union.
The Thompson-Okanagan Development Region comprises five Regional Districts, the Okanagan-Similkameen, Thompson-Nicola, Central Okanagan, North Okanagan, and Columbia-Shuswap, and has the third-highest population after Southwest B.C. and Vancouver Island/Coast.
The CPABC Regional Check-Up reports look at British Columbia’s eight Development Regions as a place to work, invest, and live. The reports are available online at www.bccheckup.com.
