Greater Victoria’s unemployment rate was virtually flat in June at 4.1 per cent, moving up only slightly from four per cent in May.
The labour force in the capital region declined slightly to 223,900 in June from 224,600 the previous month, Statistics Canada said Friday in its monthly report on unemployment. Labour force refers to those who are working and seeking work.
The total number of people working came in at 214,800 in June, down from 215,700 in May, the federal agency said.
Many employers in the capital region are desperate for workers and are increasingly offering incentives to hire and keep employees. B.C. Ferries, for example, is offering bonuses to staff who bring in an employee in a desired job category and money for that worker if they stay on.
Other employers are trying to lure workers by offering flexible hours, custom benefits and free insurance.
Several sectors of the Greater Victoria economy report strong job growth last month compared to June 2021, Statistics Canada said, including the busy construction sector, where 17,700 workers were employed in June, up from 14,800 in June 2021.
Manufacturing saw an increase to 8,600 jobs last month from 6,500 year-over-year.
Wholesale and retail trade job numbers climbed to 29,500 in June from 28,100 in the same month in 2021.
Health-care and social-services work rose to 34,400 last month from 26,900 in June of last year.
Declines were seen in accommodation and food services, with 18,700 working last month compared with 14,800 in June 2021.
Public administration also saw a job drop to 29,500 from 31,100 year-over-year.
B.C.’s unemployment rate was 4.6 per cent last month, down from 6.4 per cent a year ago.
“In the month of June, we saw renewed confidence with full-time employment up, gains in self-employment and an increase in our labour force, while most other provinces saw reductions,” said Jobs Minister Ravi Kahlon.
Nationally, Canada’s economy recorded a loss in jobs for the first time since January while the unemployment rate dropped to another record low.
The country lost 43,000 jobs in June as the unemployment rate fell to 4.9 per cent, Statistics Canada said.
The May unemployment rate was 5.1 per cent, the lowest since at least 1976, which is as far back as comparable data goes.
“The job market still looks very strong after looking through some of the monthly noise,” said Bank of Montreal senior economist Robert Kavcic in an email.
Looking ahead, Kavcic said BMO is expecting a “meaningful slowdown in the economy later this year.”
The Bank of Canada is expected to raise its key interest rate on Wednesday, with most economists predicting a hike of three-quarters of a percentage point.
A recent study from the Canadian Centre for Policy Alternatives warned rapidly increasing interest rates will likely send the Canadian economy into a recession and could cause significant “collateral damage,” including 850,000 job losses.
For now, though, CIBC chief economist Avery Shenfeld said the Bank of Canada wouldn’t be dissuaded from raising interest rates more aggressively, noting an increase of 1.3 per cent in hours worked and the decline in jobs being offset by lower labour force participation.
“On its own, the headline jobs decline isn’t yet convincing evidence of a slowdown that will deter the Bank of Canada from a 75 basis point hike next week,” Shenfeld said in an email.
June’s decline in the unemployment rate is attributed to fewer people looking for work, Statistics Canada said, while the loss in jobs was driven by a decline in self-employment by 59,000 jobs.
For business owners, a decline in the labour force participation rate only adds to their labour shortage woes.
Mark Kitching, owner of Waldo’s on King bistro and wine bar in London, Ont., says hiring challenges are ongoing. He says he could hire two or three additional kitchen staff but isn’t getting applicants.
“I talked to people in my industry and we’re all having the same problem,” said Kitching.
The vacancies at Waldo’s mean staff have to work overtime hours, which Kitching says makes it more expensive and stressful to operate.
June also saw a faster pace of wage growth, with average hourly wages rising 5.2 per cent year over year to $31.24.
Kavcic said previous wage growth numbers were lagging and didn’t capture “reality on the ground.”
“These numbers are now better reflecting conditions in the real economy,” he said.
In comparison to wage growth prior to the pandemic, June recorded the fastest growth since the collection of comparable data in 1998. However, the rise in wages in June was still below the most recent inflation rate of 7.7 per cent reported in May.
Wage growth was led by gains among non-unionized workers, who saw their wages go up by 6.1 per cent, while unionized workers experienced a slower rise in wages of 3.7 per cent.
Employment in the public and private sectors held steady.
Jobs in the services-producing sector declined by 76,000, erasing gains made earlier in the year. The largest decline in employment was in retail trade. The report said data over the next few months may help answer whether the decline was due to consumer behaviours changing as inflation remains high.
Employment in the goods-producing sector rebounded, with 33,000 jobs added.
- With files from The Canadian Press
