REPORT: 16,000 jobs lost in BC last month
Last Friday, Statistics Canada published its Labour Force Survey for July, revealing a troubling trend in BC’s labour market this year.
BC lost a staggering 16,000 positions in its overall labour force during July, with the overall unemployment rate rising by 0.3 percent to a total of 5.9 percent. The number one reason cited across all industries was being terminated due to job layoffs.
Ravi Kahlon, Minister of Jobs and Economic Growth, blames the rise in unemployment on the American tariffs against Canadian industries, stating that the survey “shows the impact of US President Donald J. Trump’s tariff threats is being felt across the country.”
Minister Kahlon also pointed out how BC “gained 21,400 full-time jobs, the highest increase among provinces” so far this year. However, many would point out that the 16,000 jobs lost in July alone already put a significant dent in the “success” that Kahlon’s figures seem to present.
In addition, the provincial government has contributed to the layoff rate, with 57 staff being laid off from the Provincial Health Services Authority in the last month, according to documents obtained by The Globe and Mail.
These included some positions at the BC Centre for Disease Control, nine people in financial operations, “several” in health systems intelligence, and PHSA’s chief strategy officer, Heather Findlay. Sixty one “vacant” positions were also laid off, but it was not specified whether they were critical roles or if applicants were being sought to fill them.
Further adding to the controversy, Fraser Health CEO Dr. Victoria Lee received a $600k severance package after being fired from the company earlier this year, which was approved by the BC government. Many have called this unfair, especially in comparison to the treatment of the Ministry of Health positions. Organizations like the BC branch of the Canadian Taxpayers Federation have replied, saying they are disappointed that British Columbians, who are already experiencing job insecurity and cost-of-living problems, will be taxed by the government for this oversized severance package Dr. Lee is receiving.
The NDP’s New Direction
National Unemployment Rate by Age, Courtesy of Statistics Canada
These layoffs come from the expenditure management and efficiency review directive the NDP government has been quietly following to eliminate what it deems to be unnecessary spending. This was done to lower budget deficits spawned from the provincial government's high spending costs.
Interestingly, in a public post last updated in May by the provincial government elaborating on the new directive, they stated that “layoffs are not being considered.”
While May saw an increase of 13,000 jobs for BC, this can be attributed to the youth summer seasonal positions being filled across the province, like internships or short-term positions. With little change happening in the rate in the months before or the following June, as well as July’s losses completely negating these gains, May’s numbers were more of a seasonal anomaly than the start of any employment trend.
Youth in BC have recently had great difficulty in finding employment, according to Statistics Canada, as well, with the overall youth unemployment rate being the third-worst amongst the provinces. Nationwide youth unemployment has reached its highest level since 2010, which followed a major global recession.
Provincially and nationally, it is clear that there is a need for leadership to reverse the course on unemployment rates, especially for Canadian youth.
