B.C.’s economy likely lost momentum in July, according to the latest labour force survey. Employment was unchanged during the month at 2.747 million people, slowing from a 0.2 per cent gain in June. That said, with the unemployment rate sitting at 4.7 per cent, the labour market remained tight with labour supply constraining growth in some sectors.
Regionally, Metro Vancouver area changes were insignificant, with a 0.2 per cent employment decline and flat unemployment rate of 4.8 per cent.
With a flat headline performance, there were few noteworthy changes below the surface. Hiring swung to fulltime employment (up 0.7 per cent or 14,900 people) but was offset by fewer part-time workers (minus 2.5 per cent or 14,300 people), suggesting extension of hours in some sectors due to labour shortages. Seasonally adjusted total hours worked, while up 3.2 per cent from a year ago, decelerated and slipped from June. Like the national picture, employment among females 25 and older declined but this was at a comparatively modest 0.3 per cent.
Despite the hiring lull, total employment remained nearly four per cent above pre-pandemic February 2020 levels – among the strongest in the country. The unemployment rate remained low at 4.7 per cent and the labour force participation rate was unchanged at 65.1 per cent. The province continues to face rising wage pressures. Average hourly wages accelerated to 5.7 per cent year over year from 3.7 per cent in June.
B.C. consumer insolvency filings in Q2 2022 reached 2,321 cases. That is the highest reading since Q2 2020 but merely one per cent higher than the same quarter last year. The number of consumer insolvency filings in Q2 2022 was 19.6 per cent (567 cases) below pre-pandemic levels in Q4 2019 and 10.8 per cent (282 cases) less than Q1 2020.
The deterioration in household finances due to a return to normal spending patterns post-pandemic, high inflation and rising interest rates on borrowings may all lead to significant increases in insolvency filings. However, in addition to higher wages and tight labour market conditions, excess pandemic savings could alleviate some of this pressure. ■
Bryan Yu is chief economist at Central 1 Credit Union.
