Jobless numbers decrease locally

The unemployment rate in greater Kelowna fell to 8% in September from 9% in August.

A total of 99,400 people are now working across the Central Okanagan, up 1,500 from August.

At 8%, the region’s unemployment rate is now one point below the national average, and it’s below Vancouver’s 11.1% and Victoria’s 9.1%.

Kelowna’s jobless rate is equal to that of Abbotsford-Mission’s, the other B.C. metropolitan rate whose employment numbers are tracked by Statistics Canada.

But part of the drop in unemployment in Kelowna is attributable to the fact that 800 people left the labour force, and were no longer actively looking for work, between August and September.

That followed a drop in the local labour force of 1,400 people between July and August.

Still, the rise in total local employment in September made for three consecutive months that the jobless rate has declined in Kelowna.

The unemployment rate peaked at 10.2% in June after rising steadily from 5.9% in March, due to worsening economic conditions caused by layoffs and business shutdowns associated with the COVID-19 pandemic.

To some extent, Kelowna’s recovery has been held back by the slow pace in which jobs are being restored in the city’s important accommodation and food service industry.

That concern has broader implications.

“One of the key questions isn’t just what happens in areas like the restaurant industry, but whether the jitters that might show up there spread over to the broader economy,” said Brendon Bernard, an economist with job-posting website Indeed.com.

Nationally, “this industry was the furthest from recovery in September, down 15.3% from its pre-pandemic February level,” Statistics Canada said. “The accommodation and food services industry is likely to continue to face a number of challenges over the coming months.

“While outdoor dining is likely to become impractical during the winter months and as some COVID restrictions are re-introduced, a recent study indicated that Canadians plan to reduce spending at restaurants,” Statistics Canada said.

Nationally, the economy added 378,000 jobs in September as Canadians adapted to back-to-school routines and more parents returned to work.

The overall gains in September brought employment to within 720,000 of pre-pandemic levels.

The national jobless rate, now at 9%, peaked at 13.7% in May.