Construction jobs and positions in health care and government are helping to offset some of the massive employment losses in Greater Victoria’s tourism and hospitality sector, according to an analysis by the Chartered Professional Accountants of British Columbia.
But the effects of the pandemic on employment in the capital region remain a heavy ball and chain on the economy.
The unemployment rate went from 3.6% unemployment a year ago — one of the lowest in Canada — to 10.6% during the height of the shutdowns in May.
Greater Victoria has recouped jobs over four consecutive months to September, helping to lower the unemployment rate to 9.3%. That is still well above pre-pandemic levels and significant job losses remain, says the CPA group.
In September, Greater Victoria’s total employment fell by 3.1 per cent compared to last year, a loss of 6,100 jobs entirely concentrated in the service sector, mostly surrounding tourism.
Lindalee Brougham, principal at Grant Thornton LLP, said the surge in unemployment is not surprising, noting the region relies on the service sector, which is particularly vulnerable to the actions taken to curb the COVID-19 pandemic, such as physical distancing and reduced travel.
The accountants’ group said the three hardest-hit job sectors have been accommodation and food services; personal and household services; and the information, culture and recreation industries. These sectors employed 23,400 workers in Greater Victoria during September, a significant decline from the 33,900 employed at the same time last year.
In contrast, the region’s largest employer, public administration, experienced a 3.6 per cent increase to 29,100 positions, now accounting for more than one in every seven jobs.
“As the region relies heavily on tourism activity and corporate travel, it was not surprising to see sharp declines in hospitality, personal services and entertainment positions,” said Brougham. “With flight restrictions and cruises on hold for the foreseeable future, it is possible some of these jobs may take years to return.”
It’s important to provide displaced workers support such as targeted skills training so they can secure employment again, Brougham said.
The analysis said a positive sign appeared in the goods sector, where employment expanded by 2.3%, largely due to strength in manufacturing and ongoing construction projects across Greater Victoria.
The construction industry employed 16,600 workers in September, up nearly 600 positions from a year ago, while manufacturing employment was up by more than 20%.
Brougham said real estate development has continued to flourish.
“Across Greater Victoria, the many projects underway will help maintain our region’s economic stability,” she said, adding further development should be encouraged to fuel economic recovery and improve housing affordability.
The CPGA said its research is from Statistics Canada’s Labour Force Survey, where monthly data follows a moving three-month average and is not seasonally adjusted.
