Jobs Minister Brenda Bailey says B.C.鈥檚 economy remains strong, but her political opposition continues to warn of declining employment in the private sector.
Figures released last week show the provincial unemployment rate has dropped by 0.2 per cent to 5.2 per cent in February.
鈥淚n the face of high interest rates and slower global economic growth, B.C. held steady in February with a growth of 5,900 jobs and a gain of 70,900 jobs since February 2023,鈥� Bailey said, adding that the provincial unemployment rate remains one of Canada鈥檚 lowest, and below the national average of 5.8 per cent.
The opposition, however, has focused on different numbers.
BC United pointed out on social media that B.C. lost 17,200 private sector jobs in February 2024 compared to January 2024 and repeated previous warnings about a shrinking private sector. The public sector added 7,100 jobs in February for a net loss of 10,100 employed British Columbians. Another 16,000 joined the ranks of the self-employed in February, leaving B.C. with a net gain of 5,900 jobs of all kinds.
Overall, 2.84 million British Columbians were employed in February 2024 with 2.4 million considered paid employees and the rest self-employed. Just under 1.8 million employees worked in the private sector, while about 590,000 worked in the public sector. Looking at the period from February 2023 to February 2024, public sector employment grew by 8.7 per cent, while private sector employment grew by 1.3 per cent.
While some economists warn of public spending 鈥榗rowding鈥� out private sector investments and burdening future generations with rising interest rate payments on debt, others say investments in public infrastructure and services (such as health care) are needed because of B.C.鈥檚 rising and aging population.
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BC United has long warned of declining employment in the private sector, pointing to the pending completion of several large energy-construction projects including Site C. Bailey鈥檚 statement appears to have anticipated this critique in pointing out that B.C. has added the second-most private-sector jobs in Canada since February 2023 with 22,400.
Finance Minister Katrine Conroy last month also tried to assuage fears about declining private sector employment, noting that several unspecified projects are in the pipeline. The provincial budget includes additional spending on a range of capital projects that could absorb private sector jobs.
February鈥檚 job figures were the first of their kind following the release of last month鈥檚 provincial budget. While the new job figures reflect conditions before the budget, Bailey used the occasion of their release to repeat its key talking points, including various temporary relief measures and changes to the Employer Health Tax.
鈥淔or small business owners, the Employer Health Tax threshold has been increased to $1 million (from $500,000),鈥� Bailey said. 鈥淭his means 90 per cent of businesses will be exempt from the Employer Health Tax and thousands more will receive savings.鈥�
The release of the new job figures also coincides with the ongoing debate in the provincial legislature about the budget, which includes a record-setting deficit of nearly $8 billion.
Critics received some additional ammunition when the credit rating agency Morningstar DBRS raised concerns about B.C.鈥檚 financial trajectory.
鈥淐ontrary to prior expectations at the time of our last review in May 2023, British Columbia鈥檚 debt outlook has deteriorated,鈥� it reads. 鈥淭he debt burden is expected to rise substantially as spending ramps up for budget-related investments.鈥�
While 鈥渟ubstantial increases in spending on priority areas, higher deficits and and a larger borrowing program鈥� will reduce B.C.鈥檚 financial flexibility for years to come, Morningstar DBRS has signalled that it won鈥檛 down-grade B.C.鈥檚 credit rating.
鈥淭he Province鈥檚 prudent fiscal approach, consistent track record of outperformance and strong balance sheet lend stability to its AA (high) credit rating,鈥� it reads.
