Unemployment
BC’s unemployment rate declined by 0.9 percentage points (ppt) in 2017, dropping to 5.1%. This was the ninth consecutive year of decline for
this indicator. Northeast BC and Northwest BC saw the largest decreases, with unemployment falling to 5.9% (-3.8 ppt) and 5.8% (-1.9 ppt),
respectively. The labour force in Northeast BC has declined over the past two years, as some workers have left the region to find work elsewhere
and others have withdrawn from the labour force altogether. In the North Coast, a combination of job growth, a smaller labour force, and reduced
participation yielded the same dramatic results.
Southwest BC’s unemployment rate declined by 0.9 ppt in 2017, dropping to 4.6%, which was the lowest rate in BC and the culmination of several
years of steady decline. Vancouver Island/Coast saw a similar decline in its unemployment rate, dropping by 0.8 ppt to 5.0%. The unemployment
rates in the Thompson-Okanagan and Kootenay development regions both declined by 0.7 ppt, falling to 7.1% and 7.3%, respectively. There was
no change, however, for Cariboo, where the unemployment rate stayed at 7.0%.
Young workers benefited from BC’s economic growth. In 2017, the youth unemployment rate (the rate of unemployment among labour force
participants between 19 and 24 years of age) declined by 1.7 ppt, dropping to 7.0%, its lowest level since 2012.
Table 2: Unemployment Rate* in All Development Regions, 2012-2017 (%)
Percentage point
change
Region
2012 2013 2014 2015 2016 2017 5-Year 1-Year
2012-17
2016-17
Cariboo
Kootenays
Northeast BC
Northwest BC
Southwest BC
Thompson-Okanagan
Vancouver Island/Coast
British Columbia
7.0 5.9 6.0 7.0 7.4 7.4 0.4 0.0
7.0 5.9 6.9 7.4 8.0 7.3 0.3 -0.7
4.1 4.8 4.9 5.9 9.7 5.9 1.8 -3.8
11.0
6.9
8.0
7.0
7.7
5.8
-5.2
-1.9
6.9
6.7
6.0
6.0
5.5
4.6
-2.3
-0.9
7.1 7.0 6.3 6.4 7.8 7.1 0.0 -0.7
6.2 6.3 6.1 6.3 5.8 5.0 -1.2 -0.8
6.8
6.6
6.1
6.2
6.0
5.1
-1.7
-0.9
Source: Statistics Canada, Labour force survey estimates (LFS), employment by economic region based on 2011 Census boundaries and North American Industry Classification System
(NAICS), annual, CANSIM Table 282-0125.
*Unemployment rates were calculated by author.
Investing in regional BC
Business and investment activity
The overall value of major capital investments in BC declined in 2017. Between the fourth quarter of 2016 and the fourth quarter of 2017, the
estimated cost of all major projects that were underway, proposed, completed, or on hold declined from $436.9 billion to $402.6 billion. Altogether,
this was a downturn of $34.4 billion (or 8%), much of which was caused by the cancellation of some proposed oil and gas projects in Northwest BC. 6
At $187.1 billion, BC’s North Coast accounted for the largest share of capital projects in BC (46%) in the fourth quarter of 2017. And despite
the cancellation of some major projects in the past year, North Coast still dominates the rest of the province in terms of resource potential. At
$69.7 billion, Southwest BC ranked second in terms of estimated capital costs, with 17.3% of the provincial total. Together, Vancouver Island/
Coast and Thompson-Okanagan comprised $80.1 billion, almost 20% of the provincial total.
Venture capital
Although venture capital constitutes only a small share of total capital investment, it provides insight into investor confidence and where these
dollars are being directed. 7 In 2017, 91 major venture capital deals with a total value of $646 million were completed in BC. 8 In fact, BC was home
to two of the top 10 disclosed venture capital deals in Canada last year: Vision Critical ($76 million) and Visier ($61 million).
BC Ministry of Jobs, Tourism and Skills Training, BC Major Projects Inventory, December 2017. This inventory lists data for capital investments
6
that exceed $20 million in value. It includes data on residential and commercial services, transportation and warehousing, mining, utilities,
manufacturing, public services, and other services.
Venture capital investors include private sector, government, corporate, institutions, and various funds.
7
Canadian Venture Capital and Private Equity Association, VC and PE Canadian Market Overview, 2017.
8
20 CPABC in Focus • July/August 2018