CPABC: Flattened Thompson-Okanagan employment growth cause for concern

KELOWNA, British Columbia, Nov. 02, 2022 (GLOBE NEWSWIRE) -- According to the BC Check-Up: Work, an annual report by the Chartered Professional Accountants of British Columbia (CPABC) on employment trends across the province, total employment in the Thompson-Okanagan reached 309,900 in September 2022, up 1.5 per cent from September 2021. However, employment was about the same as in September 2019 (310,000).

"While our region did see some job growth over the past year, it is somewhat concerning to see that job growth was in part-time positions, while full-time positions fell slightly. Further, over the past three years, the level of employment was flat," said Karen Christiansen, FCPA, FCA, partner at MNP LLP in Kelowna. "In contrast, our population grew by 5.3 per cent since September 2019. The low unemployment rate also masks the fact that many job seekers have left the labour force."

Unemployment was 4.9 per cent in September 2022 compared to 5.4 per cent in September 2021 and 4.5 per cent in September 2019.

The labour participation rate was 63.0 per cent as of September 2022, compared to the pre-pandemic level of 66.0 per cent in 2019. In total, the number of residents not in the labour force increased by 14.8 per cent over that period (+24,700).

"The sustained decrease in the number of people looking for work is a worrying trend," said Christiansen. "Businesses have faced significant challenges finding and retaining workers, and this negatively affects our region's economic growth and productivity. The situation has also varied widely by sector and industry."

Overall, the region's goods sector accounted for 67,100 jobs in September 2022, down 1.9 per cent compared to September 2021. Declines in the natural resource workforce (-22.9 percent) and construction (-9.9 per cent) industries drove losses over that period. Goods sector employment was down 5.6 per cent since September 2019.

Service sector employment reached 242,800 positions in September 2022, a 2.4 per cent increase compared to September 2021. This was driven by growth in information, culture, and recreation (+36.4 per cent), wholesale/retail trade (+31.9 per cent), and hospitality (+18.1 per cent).

Overall, service sector employment was up 1.7 per cent compared to September 2019. However, employment in the hospitality (-20.4 per cent) and wholesale/retail trade (-14.2 per cent) industries remained down over that period.

In Q2 2022, the Thompson-Okanagan had a record high job vacancy rate of 8.1 per cent, representing 22,900 vacant jobs.

"The number of vacant jobs was up by nearly a quarter compared to 2021, and up 80.6 per cent compared to the pre-pandemic level," said Christiansen. "These unfilled jobs are a drag on our economy and mean fewer services and goods for residents. Going forward, it is critical we find ways to improve the situation, such as by attracting workers to the region, improving housing affordability, and providing skills training, particularly for industries facing the greatest labour shortages."

Learn more about the BC Check-Up: Live report. Data is from Statistics Canada Labour Force Survey, follows a moving three-month average and is not seasonally adjusted. 

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About CPA British Columbia
The Chartered Professional Accountants of British Columbia (CPABC) is the training, governing, and regulatory body for over 38,000 CPA members and 6,000 CPA students. CPABC carries out its primary mission to protect the public by enforcing the highest professional and ethical standards and contributing to the advancement of public policy. CPAs are recognized internationally for bringing superior financial expertise, strategic thinking, business insight, and leadership to organizations.