FINLAYSON: COVID-related job losses concentrated in urban areas… especially Metro Vancouver

The biggest job losses, in absolute terms, have been in Metro Vancouver

A little talked about dimension of the impact of COVID-19 on the provincial labour market is the differing regional employment profiles. Upon inspection, these turn out to be significant.

The biggest job losses, in absolute terms, have been in Metro Vancouver. This is not surprising, since about half of the province’s population lives there. But proportionally, Metro Vancouver has been harder hit by the virus-driven recession than other parts of the province. Employment in Metro Vancouver is still down 12 per cent from February. In comparison, B.C.’s other three other census metropolitan areas – Abbotsford-Mission, Kelowna, and Greater Victoria — have seen more moderate job losses in the range of 5-7 per cent.

Meanwhile, the job numbers for non-metro British Columbia are striking. Collectively, employment in regions of the province other than the four census metropolitan areas has fully recovered since the spring. True, some non-metropolitan local economies have been more affected than others. But in general, smaller cities and rural areas have fared better in terms of job losses, particularly compared the province’s largest urban centre.

The fact that Metro Vancouver has experienced the steepest job losses reflects the region’s industrial and employment mix. Industries hammered hardest by the lockdown of consumer-facing business and the virtual cessation of international travel have an over-sized presence in the lower mainland’s economy relative to non-metropolitan regions as well as the province’s other three census metropolitan areas.

FINLAYSON: COVID-related job losses concentrated in urban areas… especially Metro Vancouver

The impacts of no cruise ships, significant job losses in air transportation, no tour operators, the cancellation of all major audience-attended sporting events and concerts, no conventions, shuttered casinos, the reduction in business travel, and a bare trickle of international tourists – all of these are felt most acutely in Metro Vancouver.

The industries that remain fully or partially closed are heavily represented in the City of Vancouver and its surrounding suburbs. Coupled with the shift to remote working – starkly evident in the strange near-emptiness of downtown Vancouver – these trends have delivered a body blow to large segments of the Metro Vancouver economy.

Many businesses in the region’s tourism, travel, event and accommodation sectors have been struggling to survive. And lots of lower mainland retailers have also seen traffic drop off sharply.

On the other hand, manufacturing, forestry, mining, oil and gas, and agriculture have regained all of the jobs lost since February, and then some. These industries are over-represented in regions of B.C. beyond Metro Vancouver.

In addition, it should not be overlooked that the public sector’s economic footprint is often proportionally larger in small communities – and most public sector organizations have not laid off staff since February. Thus, the relative stability of public sector jobs has also supported employment in non-urban areas of the province.

Policy makers should be alive to the comparative strengths and weaknesses of both urban and non-metropolitan economies amid the ongoing COVID-19 saga. It is important to pay attention to the economic health of the industries underpinning different communities and regional economies.

Of interest, several of B.C.’s leading export industries have continued to operate during the pandemic, and these industries are central to the economies of non-metropolitan regions. B.C. needs to build upon the relative resiliency of our export-oriented industries to support the regions where they are based.

In Metro Vancouver, making further headway in regaining lost jobs depends on reopening closed or partially operating sectors as well as the return of international travel, business meetings and conventions. Absent an effective vaccine or herd immunity being achieved, the employment recovery in Metro Vancouver and some other B.C. urban areas is apt to be both sluggish and uneven.

Jock Finlayson is executive vice president and chief policy officer of the Business Council of British Columbia

Just Posted

A tent housing a mobile vaccination clinic. (Interior Health/Contributed)
Second dose vaccinations accelerating throughout region: Interior Health

To date, more than 675,000 doses have been administered throughout the region

Okanagan Lake (File photo)
Thompson-Okanagan ready to welcome back tourists

The Thompson-Okanagan Tourism Association expects this summer to be a busy one

Aerial view of a wildfire at 16 Mile, 11 kilometres northwest of Cache Creek, that started on the afternoon of June 15. (Photo credit: BC Wildfire Service)
Wildfire at 16 Mile now being held

Wildfire started on the afternoon of June 15 at 16 Mile, east of Highway 97

The Desert Daze Music Festival is doggone good fun, as shown in this photo from the 2019 festival, and it will be back in Spences Bridge this September. (Photo credit: Barbara Roden)
‘Best Little Fest in the West’ returning to Spences Bridge

Belated 10th anniversary Desert Daze festival going ahead with music, vendors, workshops, and more

Internet speed graphic, no date. Photo credit: Pixabay
Study asks for public input to show actual internet speeds in B.C. communities

Federal maps showing Internet speeds might be inflated, so communities lose out on faster Internet

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

An old growth cedar stands in a cut-block within the Caycuse Valley. More than 100 prominent Canadians, have signed an open letter calling for the immediate protection of all remaining old-growth forests in B.C. (Submitted)
Brian Mulroney and Greta Thunberg among 100 celebrities pushing to save B.C. old growth

List includes Indigenous leaders, scientists, authors, Oscar winners

The border crossing into the United States is seen during the COVID-19 pandemic in Lacolle, Que. on Friday, February 12, 2021. THE CANADIAN PRESS/Paul Chiasson
U.S. border restrictions to remain in place until at least July 21

Safety minister says Canada, U.S. extending restrictions on non-essential international travel

Himalayan Life helped finance the construction of Nepal’s Yangri Academic Centre and dormitories after a 2015 earthquake devastated the valley, killing more than 9,000 people. (Screen grab/Peter Schaeublin)
B.C. charity founder pledges to rebuild Nepalese school swept away by flash floods

6 years after a catastrophic earthquake killed more than 9,000 people, Nepal gets hit again

FILE – A science class at L.A. Matheson Secondary in Surrey, B.C. on March 12, 2021. (Lauren Collins/Surrey Now Leader)
Teachers’ union wants more COVID transmission data as B.C. prepares for back-to-school

BCTF says that details will be important as province works on plan for September

Provincial health officer Dr. Bonnie Henry outlines B.C.’s COVID-19 restart plan, May 25, 2021, including larger gatherings and a possible easing of mandatory masks on July 1. (B.C. government photo)
B.C. records 120 new COVID-19 cases, second vaccines accelerating

Lower Pfizer deliveries for early July, Moderna shipments up

A Heffley Creek peacock caught not one - but two - lifts on a logging truck this month. (Photo submitted)
Heffley Creek-area peacock hops logging trucks in search of love

Peacock hitched two lifts in the past month

The Calgary skyline is seen on Friday, Sept. 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
2 deaths from COVID-19 Delta variant in Alberta, 1 patient was fully immunized

Kerry Williamson with Alberta Health Services says the patients likely acquired the virus in the hospital

The first suspension bridge is the tallest in Canada, with a second suspension bridge just below it. The two are connected by a trail that’s just over 1 km. (Claire Palmer photo)
PHOTOS: The highest suspension bridges in Canada just opened in B.C.

The Skybridge in Golden allows visitors to take in views standing at 130 and 80 metres

Most Read