Smaller labour force means unemployment rates improve in Thompson-Okanagan

Interior jobless rates plunge

Photo: The Canadian Press

Unemployment rates fell in both Kelowna and Kamloops in January.

The new year kicked off with solid employment data in both Kelowna and Kamloops.

The unemployment rates in both cities fell dramatically in January, according to the labour force survey released Friday by Statistics Canada. The Kamloops’ mark dropped nearly three percentage points from December to 4.8% last month, making it the seventh lowest rate in Canada.

Kamloops’ jobless figure was one of the highest in Canada as recently as July, when it was 10.7%. It has fallen all but one month since then.

Kelowna’s unemployment rate, meanwhile, continued its plunge and landed at 6.8% in January. That was well down from 11% in November and 8.6% in December. The reason for the drop was a decline in the labour force, which is the number of people who are able and looking for work. Kelowna actually lost 1,300 jobs in January, but the labour force drop—from 143,800 people in December to 139,600 in January—caused the unemployment rate to improve.

Kamloops gained 200 jobs in January, and its labour force dropped by nearly 2,000 people, resulting in the healthy unemployment rate.

The improvements in Kamloops and Kelowna also resulted in the entire Thompson-Okanagan unemployment rate falling from 7.4% to 6.8%.

B.C.’s unemployment rate in January was 6.1%, which was the third lowest in Canada. The national unemployment rate last month was 6.5%.

“People around the world and across Canada are feeling the effects of a slowing global economy driven by unjustified trade wars and tariffs reducing market access, and economic uncertainty,” B.C. Minster of Jobs and Economic Growth Ravi Kahlon said in a press release.

“Despite these challenges, B.C. is seeing continued strength in labour-market performance in areas such as health care and social assistance, construction and wholesale trade.”

The opposition took aim at the NDP government for B.C.’s recent population loss, which it says indicates a lack of faith in the economic future. B.C. is one of only two provinces that has lost population

“With debt at record highs and another massive deficit budget coming, David Eby has spent years weakening the very economy he’s depending on to pay for his surge in spending,” Conservative critic for jobs, economic development, innovation and AI Gavin Dew said. “The money is gone, the jobs are gone, and private sector potential is fleeing.

“People are leaving BC, and what’s most concerning is that we’re losing the next generation of innovators, entrepreneurs, and job creators as they seek greener pastures.”

The national economy lost 25,000 jobs in January, compared to economists’ expectations for a slight gain, but a smaller labour force meant fewer people were looking for work and the unemployment rate fell from 6.8% to 6.5% in January.

Desjardins economist Kari Norman said January marked a "bit of a U-turn" for the economy, which had steadily added jobs across the previous four months.

January’s job losses mostly came from the private sector and part-time work, and were largely concentrated among women aged 25 to 54. Ontario bore the weight of the losses last month, particularly in the manufacturing sector.

StatCan said manufacturing shed 28,000 positions in January and is down roughly 51,000 jobs from a year earlier—before U.S. tariffs hampered the industry.

Also seeing losses were the education sector and the professional, scientific and technical services industry. There were some gains in the information, culture and recreation sector and the business, building and other support services industries to offset the losses.

Average hourly wages rose 3.3% annually last month, a tick below December’s levels.

Bank of Canada governor Tiff Macklem said in a speech Thursday that he expects an “uneven” recovery in the labour market this year as some sectors and occupations see gains but others face slower improvement.

Norman said many businesses will likely be watching the upcoming review of the Canada-U.S.-Mexico trade agreement for signs of clarity on the tariff front before making major hiring decisions.

The Bank of Canada held its benchmark interest rate steady at 2.25% last week. Its next decision is set for March 18.

— with files from The Canadian Press