It was another downbeat month for B.C.’s labour market in September with employment down for a fifth consecutive month. Employment fell by 18,000 people or 0.6 per cent, narrowing year-over-year growth to 0.3 per cent. This was well below the national performance of 1.5 per cent.
The province’s unemployment rate rose 0.2 points to six per cent even as the labour force contracted (down 0.4 per cent) in September. The labour participation rate dropped to 63.8 per cent from 64.2 per cent last month, despite a 0.3-per-cent increase in the population. Economic growth has been insufficient to absorb population gains, which is likely leading to a rising pool of discouraged workers.
The decline of part-time work led the overall employment contraction in B.C. in September, falling 2.5 per cent or by 14,600 people. Full-time employment also dropped 0.2 per cent (down 3,400 people), following a decrease seen the previous month. The Vancouver census metropolitan area saw a 0.2-per-cent increase in its employment level, while its unemployment rate rose to 6.7 per cent from the 6.3 per cent recorded in August. During the same month last year, the area’s unemployment rate level was at 6.1 per cent.
By sector, services-producing industries led B.C.’s employment decline in September with a 0.7-per-cent decrease. Goods-producing industries also registered a 0.4-per-cent decline. The natural resources sector led the monthly decrease with a contraction of 4.7 per cent (down 2,500 people), alongside B.C.’s agriculture sector, which saw a 10.3-per-cent decline (down 1,900 people). The finance, insurance, real estate, rental and leasing sector (down 6.7 per cent or 12,500 people) reported a large decline in hiring in September. Notable hiring declines were also seen in sectors such as accommodation and food services (down 2.7 per cent or 4,900 people). The decreases were partially offset by employment gains in sectors such as educational services (up 2.1 per cent or 4,500 people).
B.C. building permits retrenched in August after a large gain in July. Total permit values in the province dropped significantly—down by 21 per cent—to reach $1.8 billion. The province was a key contributor to the overall national decline of seven per cent. Permits declined substantially in both the residential and non-residential sectors.
Monthly permit numbers tend to vary widely, but the 12-month moving average has not shown significant changes. The unadjusted-for-seasonality, year-to-date permits have fallen by 3.3 per cent. Still-high construction and borrowing costs are limiting activity growth in the sector. More rate cuts will be needed to support a sustained boost in activity in the sector.
Residential building permits in B.C. dipped in August, falling by 12.2 per cent to $1.3 billion. Within the sector, multi-family permit issuances declined by 11.1 per cent while single-family dwelling issuances saw a decrease of 16.4 per cent.
Non-residential permit values decreased by 35.6 per cent to $559.8 million, with all subcategories experiencing lower permit issuances in August. Industrial permit values lessened by 53.5 per cent, while commercial permits were down by 41.4 per cent. Institutional and governmental permits issued also fell by 4.5 per cent.
Reductions were widespread across B.C.’s census metropolitan areas. Permits in Vancouver decreased by 35.1 per cent during the month and by 18.8 per cent on a year-over-year basis. Kelowna permits also declined by 15.2 per cent, and fell in Kamloops by 42.5 per cent. Permits in Abbotsford-Mission were down by 50.6 per cent while they retreated in Victoria by 2.1 per cent. In contrast, the value of permits issued in Chilliwack were nearly quadruple the value of those issued in July. Permits were also up in Nanaimo by 150.3 per cent.
Bryan Yu is chief economist at Central 1.
