In 2012, BC’s job creation rate was 1.7%;
this signified an increase of 37,800 jobs,
leading to a total of 2.3 million. Employment
in the goods-producing industries grew by
2.6%, as the resurgence of the forest product
industry—softwood lumber in particular—
created new jobs in manufacturing.
BC’s unemployment rate declined by 0.8
ppt, dropping to 6.7% last year; while this
was the third consecutive year in which the
unemployment rate declined, this statistic
remains above pre-recession levels. Unfortunately, BC’s youth unemployment rate
stayed above 13% for the fourth year in a
row—a lingering effect of the last recession.
In 2012, labour force educational attainment
rose by 0.7 ppt, reaching 66.6%, and the
most rapid growth (15.8%) took place
among workers with postgraduate degrees,
reflecting the burgeoning information and
high-technology sectors.
Consumer debt per capita rose by 2.9% in
2012, but this increase was well below the
growth rate in the national average (4.2%);
moreover, the long-term unemployment
rate declined by 0.1 ppt, reversing the trend
of the previous three years and heralding
improved conditions for many displaced
workers and their families. Government
health care spending per capita rose by 1.9%
in 2012, and signalled that the provincial
government continues to make health care a
priority.
where are we going?
Exports are expected to lead BC out of its late 2012/early 2013 rough patch.3 Merchandise exports during the first five months of 2013 were 4.2% higher than during the same period in
2012, due primarily to demand growth in the US and China, with wood products showing the
greatest percentage gain (up 35%).4 Continued export growth throughout 2013 should kindle
job creation and consumer spending in BC, both this year and next. RBC is predicting a real
GDP growth rate of 1.6% in 2013 and 2.7% in 2014.
Focus Piece: The Challenge for Young workers
Given continued high levels of youth unemployment, we wanted to review current labour
market trends, and assess their impact on young workers.
The nature of the labour market has changed over the past generation. The notion of job
security has become dated, as most workers today expect to have several careers in their
lifetimes. Many will change occupations, either to advance or stay employed. In addition to
facing more competitive labour market conditions, today’s new workers are also encountering
unprecedented levels of personal debt, both within their families and among their peers.
So what are the prospects for young workers today and what does this mean for their future?
Key trends in the labour market today
Youth unemployment
As the unemployment rate for youth generally exceeds the rate for the general population,
young workers continue to be hardest hit during recessions or economic downturns.
The unemployment rate for BC youth (workers age 19 to 24)5 rose from 6.1% in 2007, to
11.1% in 2009. In 2012, the provincial youth unemployment rate in BC was still 10.9%, much
higher than the overall provincial average of 6.7%.6
3
RBC, Provincial Outlook for BC, June 2013.
4
Ibid.
5
Note: This age range (workers age 19 to 24) differs from the data used by Statistics Canada
to define youth unemployment (workers age 15 to 24), which is why these statistics differ
from those cited in our economic indicators section and introduction.
6
Statistics Canada, Labour Force Survey 2012, custom table.
13.RTurnbullChartAd1 10/10/13 11:56 AM Page 1
O D LU M B R OW N .CO M
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