CPABC: Northwest B.C. September unemployment down but well above pre-pandemic rates

SMITHERS, British Columbia, Nov. 02, 2021 (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, Northwest B.C's unemployment rate fell to 7.9 per cent in September 2021, down from 9.0 per cent in September 2020. 

"Northwest B.C.'s unemployment fell as the region added 400 jobs over the past year," said Jeanne MacNeil, CPA, CA, partner at Edmison Mehr Chartered Professional Accountants in Smithers. "However, the region has yet to return to the record employment levels in 2019, and has seen a sustained decline in the number of job seekers."

As of September 2021, total employment in the region reached 42,100 workers, a 1.0 per cent increase compared to in September 2020. Despite the increase, employment remained 6.7 per cent lower than in September 2019.

Northwest B.C.'s labour participation rate ? the portion of working-aged individuals actively seeking or employed ? was 66.0 per cent in September 2021, a 2.7 percentage point decline compared to September 2019. That change represents an 1,800 decline in the number of residents in the region's labour force.

"While the region's economy was more resilient than other parts of the province last summer, we have yet to see a strong recovery in employment over the past year," continued MacNeil. "That has been largely due to a slowdown in construction and manufacturing activity. However, employment growth in the service sector offset losses in the goods sector."

Northwest B.C.'s goods sector employment fell by 25.4 per cent in September 2021 compared to September 2020. Job losses were concentrated in manufacturing (-2,300 jobs) and construction (-2,500), while strong commodity prices helped boost the natural resource workforce (+1,100).

A 13.4 per cent increase in service sector employment helped the region see a net gain in jobs over the past year. The increase was due to strong employment gains in the whole sale and retail trade (+1,100), public administration (+1,500), and the hospitality (+1,700) industries. Despite the increase over the past year, the hospitality workforce declined by over a third compared to September 2019 (-35.0 per cent).

"While the employment situation over the past year has been positive overall, lasting damage from the 2020 recession remains," concluded MacNeil. "Businesses have also faced a growing challenge of finding employees. As we continue our economic recovery, it will be important to reduce barriers for those looking to re-enter the workforce and ensure displaced workers are provided skills training, particularly for industries facing the largest labour scarcity."

Northwest B.C. encompasses the North Coast & Nechako. To learn more, see www.bccheckup.com. 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.