September was another gloomy month for British Columbia’s labor market, with employment declining for a fifth straight month. Employment fell by 18,000 people, or 0.6 percent, reducing year-over-year growth to 0.3 percent. This figure is well below the national performance of 1.5 percent.

The province’s unemployment rate rose 0.2 points to 6 per cent, even as the labor force contracted (down 0.4 per cent) in September. The participation rate fell to 63.8 percent from 64.2 percent last month, despite a 0.3 percent increase in the population. Economic growth has been insufficient to absorb demographic gains, likely leading to an increase in the number of discouraged workers.

The decline in part-time work was responsible for the overall contraction in employment in British Columbia in September, a drop of 2.5 per cent or 14,600 people. Full-time employment also fell 0.2 percent (down 3,400 people), following a decline seen the previous month. The Vancouver census metropolitan area saw a 0.2 percent increase in its employment level, while its unemployment rate increased to 6.7 percent from 6.3 percent recorded in August. During the same month last year, the region’s unemployment rate was 6.1 percent.

By sector, service-producing industries led the decline in employment in British Columbia in September, with a decline of 0.7 per cent. Goods-producing industries also recorded a decline of 0.4 percent. The natural resources sector led the monthly decline with a contraction of 4.7 per cent (down 2,500 people), alongside British Columbia’s agricultural sector, which saw a decline of 10.3 per cent. (down 1,900 people). The finance, insurance, real estate and leasing sector (down 6.7 percent or 12,500 people) reported a sharp decline in hiring in September. Notable declines in hiring were also seen in sectors such as accommodation and food services (down 2.7 percent or 4,900 people). The decreases were partially offset by employment gains in sectors such as educational services (up 2.1 percent or 4,500 people).

Building permits in British Columbia fell in August after a sharp increase in July. The total value of permits in the province fell significantly – by 21 per cent – ​​to $1.8 billion. The province played a key role in the overall national decline of 7 per cent. Permits have declined significantly in both residential and non-residential sectors.

Monthly permit numbers tend to vary widely, but the 12-month rolling average has not shown significant changes. Unadjusted permits since the beginning of the year have decreased by 3.3 percent. The still high construction and borrowing costs limit the growth of activity in the sector. Further rate reductions will be necessary to support a sustainable recovery in activity in the sector.

Residential building permits in British Columbia fell in August, falling 12.2 per cent to $1.3 billion. Within the sector, multi-family permit issuances decreased by 11.1 percent while single-family permit issuances saw a decrease of 16.4 percent.

The value of non-residential permits decreased 35.6 percent to $559.8 million, with all subcategories seeing declines in permit issuances in August. The value of industrial permits decreased by 53.5 percent, while that of commercial permits decreased by 41.4 percent. Institutional and government permits issued also decreased by 4.5 percent.

The reductions were widespread across all of British Columbia’s census metropolitan areas. Permits in Vancouver fell 35.1 percent over the month and 18.8 percent on an annual basis. Kelowna’s permits also decreased by 15.2 per cent and Kamloops’ permits by 42.5 per cent. Permits in Abbotsford-Mission decreased by 50.6 percent while they fell by 2.1 percent in Victoria. In contrast, the value of permits issued in Chilliwack was almost four times that of those issued in July. Permits also increased in Nanaimo by 150.3 percent.

Bryan Yu is chief economist at Central 1.