Job losses in B.C. were the highest across Canada last month but one economist is cautioning the province may not be the “weak spot” it appears to be.
B.C. shed 29,000 jobs in April, pushing its unemployment rate to 6.3% compared with 5.8% the previous month, according to data released May 8 from Statistics Canada.
Gains in most of the other provinces weren’t enough to offset declines in B.C. as Canada lost 20,000 jobs nationwide. The unemployment rate remained at 6.8% for the third month in a row.
BMO senior economist Robert Kavcic said in an investors’ note although B.C. appeared to be the “weak spot” of Canada, he remained skeptical of the statistics agency’s data.
“The Labour Force Survey (LFS) has, let’s just say, not always been reliable at the provincial level,” he said.
Kavcic predicted earlier this week B.C. would lead the country in GDP growth in 2015 and 2016 — the first time in a decade the province would be the No. 1 economic performer.
The new data from Statistics Canada does not align with BMO’s rosy economic forecast for B.C.
“If taken at face value, the LFS has reported no net job growth (in B.C.) since the start of 2012, whereas the payroll survey is up a solid 5.3% (as of February), and 2.4% in the past year,” Kavcic said in the investors’ note.
“Who’s telling the truth? Leaning toward the latter on this one.”
Based on Statistics Canada data, construction jobs across the nation fell by 28,000 last month.
Another 21,000 people lost jobs in retail and wholesale trade but business and support services jobs rose by 11,000.
Workers gained 47,000 full-time positions, however, this was offset by a big decline in part-time employment as 67,000 jobs were cut.
