COVID-19 “circuit breaker” restrictions held back B.C.’s labour market in May but relaxation of measures near the end of the month and a clear restart plan for the economy bodes well for June and beyond.
Provincial employment fell by a negligible 1,900 persons (or 0.1%), adding to April’s 43,100-person (1.6%) decline. That said, B.C. outperformed the national decline of 0.4% as restrictions in many provinces continued, while rising COVID-19 counts triggered more restrictions in Alberta, Manitoba and Nova Scotia.
Beneath headline figures, B.C.’s labour market held up well. Full-time employment increased 1% from April, marking the strongest one-month gain since December. A 4% decline in part-time work offset this gain. Job losses in restriction-sensitive sectors contributed to the latter decline, but this also signals increased intensity of work due to a broader economic recovery as employers shift employees to full-time hours. Total hours worked edged higher in May. Total employment was 1% below February 2020. B.C.’s unemployment rate edged down 0.1% to 7.0% as the labour force slipped by a comparable amount.
On an industry basis, month-to-month changes were generally insignificant, with some exceptions. Information/culture/recreation employment rebounded by 14,100 persons (12.2%) after a 16,900-person (12.8%) decline in April. Accommodations/food services inched higher by 1% after a 12% decline in April but remained constrained. Retail and wholesale trade held steady. Manufacturing fell 2.1% (or 3,800 persons).
That said, restriction-sensitive sectors continue to struggle. Accommodations/food services employment was down 21% from last February, business/building support services declined 9.3% and wholesale/retail trade was down 3.5%. In contrast, remote workers have allowed many organizations to continue to expand while growth associated with real estate, technology, professional services and resources sectors remained positive.
Home sales continued to cool in May although strong market conditions persisted. Multiple Listing Service sales in the region spanning Metro Vancouver and Abbotsford-Mission reached 7,205 units in May, up 217% year over year. While a stellar headline gain, it reflected both strength in current demand and base-year effects of the early pandemic’s steep sales decline. •
Bryan Yu is chief economist at Central 1 Credit Union.
