JOBS STATS SEND MIXED MESSAGE
British Columbia seems to have much to celebrate this Labour Day, with the lowest unemployment rate and highest job vacancy rate in Canada.
The B.C. unemployment rate stood at 5.6 per cent in July, thanks to an increase in employment of 12,100. B.C. was one of three provinces to report job gains (the others were Manitoba and New Brunswick), according to Statistics Canada. The national rate was 6.9 per cent.
And the Canadian Federation of Independent Business reported that the job vacancy rate in B.C. in the second quarter was 3.2 per cent (unchanged from the first quarter), representing 56,500 jobs, compared with the national rate of 2.4 per cent (also unchanged).
As the CFIB points out in its Help Wanted report, there’s a clear relationship between job vacancies and wages. It said businesses with at least one vacancy reported planned average increases of 1.8 per cent in the second quarter, while those fully staffed planned increases of 1.1 per cent. StatsCan said that, since January, construction has added 11,500 jobs, transportation and warehousing 10,100 and finance, insurance, real estate and leasing 8,800.
Alas, it’s not all sunshine and roses. The highest offered hourly wage in the Lower Mainland was $19.45, compared with $23.75 in Montreal at $23.75 and $21.85 Toronto. Moreover, many of the job vacancies were for food counter attendants and kitchen helpers — vital jobs, but not ones that pay enough to live in Vancouver.
Also, some jobs remain vacant because of a mismatch of skills or employers are having trouble luring talent to the one of the most unaffordable cities in North America.
Another dark cloud is the abrupt downturn in real estate triggered, some say, by the 15 per cent foreign buyers tax. The Greater Home Builders’ Association predicts 5,000 jobs will be lost in the region by the start of December, a decline of about 10 per cent.
Real estate and construction made up 25 per cent of B.C.’s GDP in 2014 and some analysts say that housing-related activities continue to be the main reason for high rates of GDP and job growth. Perhaps it’s time to find a way to reach a “yes” consensus on projects that create jobs, develop infrastructure, improve productivity and contribute to economic growth.