Non-farm payroll employment continued to rise through December with an increase of 8,115 net jobs or 0.3 per cent to a seasonally adjusted 2.388 million positions in B.C.
Consistent with Labour Force Survey (LFS) data, the latest non-farm payroll counts did not capture tighter public health restrictions to stem the growth of Omicron infections. While these measures are likely to slow January momentum, B.C. LFS employment remained positive given the relatively lighter touch of B.C. restrictions. Moreover, the province has already repealed some measures.
December gains were driven by service sectors, which accounted for 96 per cent of additional hiring. Among the largest sectors, hiring increased month over-month in construction (up 0.5 per cent), education (up 1.3 per cent) and health care and social assistance (up 0.4 per cent). Hiring fell in retail and wholesale trade (down 0.4 per cent), manufacturing (down 0.8 per cent), professional, scientific and technical services (down 0.2 per cent) and accommodation and food services (down 0.5 per cent).
The largest month-over-month hiring growth rates were in mining, quarrying and oil and gas extraction (up 4.7 per cent) and real estate rental and leasing (up 4.5 per cent). A hot rental market with many people moving into the province has increased the need for growth in rental and leasing while increased demand for commodities and gas has lifted hiring in mining and related industries.
December’s additional hiring marked a seventh monthly increase. Compared with pre-pandemic employment, B.C.’s non-payroll employment has fully recovered and surpassed those levels in December by 32,000 workers.
In 2021, average total non-farm payroll hiring increased 6.9 per cent. Both the goods (up 7.9 per cent) and services (up 6.6 per cent) sectors posted strong growth.
Average weekly earnings rose 0.4 per cent in December to $1,125.47 but the fixed-weight index average weekly earnings rose two per cent month over month, and 4.8 per cent year over year.
B.C.’s rental market tightened in 2021, according to the latest Canada Mortgage and Housing Corp. purpose-built rental market data. B.C.’s vacancy rate for all purpose-built townhome and apartment rental units fell in October 2021 to 1.4 per cent, down from 2.5 per cent in October 2020. •
Bryan Yu is chief economist at Central 1 Credit Union.
