BC tops Canada job growth

B.C.'s economy created 79,700 jobs for the year, according to StatsCan's labour force survey.

The province's unemployment rate nudged up 0.2 percentage points from 4.9 per cent in November to 5.1 per cent in December, but still remained among the lowest in more than three decades, StatsCan said.

Job growth in B.C. outpaced Alberta, Saskatchewan, Quebec and Ontario for the year. Alberta recorded the second highest job growth rate in 2005, with employment up 1.8 per cent.

National employment was up 1.4 per cent in 2005, though the Canadian economy lost 2,100 jobs in December. The national unemployment rate in December was 6.5 per cent, up slightly from 6.4 per cent in November.

The construction, trade, and information, culture and recreation industries were the fastest growing areas in B.C.

Construction jobs grew 14 per cent to 178,800 in 2005, followed by a 13.3 per cent hike in retail and wholesale trade jobs, and a 13.1 per cent rise in information, culture and recreation jobs.

StatsCan labour analyst Jeannine Usalcas pointed to increased construction activity in B.C., fuelled by preparations for the 2010 Winter Olympics and a hot housing market. But she noted that job growth in the province was broad-based, with strong gains also seen in the educational services, professional, scientific and technical services, and utilities industries.

"You're doing well everywhere," Usalcas said.

Craig Wright, vice-president and chief economist of RBC Financial Group, said B.C.'s job gains were in line with expectations.

"It's nothing new for this year," he said.

B.C.'s economy is enjoying an upswing after a dismal decade, with a strong pickup in global trade and high commodity prices, he said.

"We've also seen significant growth in China so the whole conduit to Asia has lifted B.C.'s growth prospects," he added.

Wright said there is some uncertainty as to whether B.C. will continue to enjoy the same rate of growth after the 2010 Olympics, but the province is showing prudent planning ahead of the Winter Games, reducing the risk of a "boom-bust" scenario.

B.C.'s reliance on resource industries helped the provincial economy weather a rising Canadian dollar better than provinces with a large manufacturing base like Ontario and Quebec, said Jock Finlayson, executive vice-president of the Business Council of B.C.

"The economic toll exacted by the rising Canadian dollar disproportionately affected central Canada," he said.

Finlayson also expected that rising consumer confidence in B.C. will likely continue boosting the demand for housing, as long as interest rates do not rise sharply.

Any increases in borrowing rates are expected to be modest, however, since underlying inflation remains low, he said.

Canadians saw their average hourly wages increase 3.8 per cent over the year to $19.45 in 2005, compared with $18.74 in 2004, Usalcas said

In B.C., however, hourly wages were slightly higher than the national average. Average hourly wages in the province rose to $19.52 in 2005, from $19.41 the previous year, Usalcas said.

(prepared by Wendy Leung/Vancouver Sun)

THE WINNERS: Sectors with the biggest B.C. job gains in 2005

Trade

353,500 (workers employed in sector)

Information, culture and recreation

127,600

Educational services

147,700

Utilities

8,000

Professional, scientific and technical services

164,400

Transportation and warehousing

119,100

Business, building and other support services

88,300

Goods-producing sector

456,700

Agriculture

39,500

THE LOSERS: Sectors with the largest B.C. job losses in 2005

Health care and social assistance

213,100 (Workers employed in sector)

Public administration

92,800

Other services

9,100

Finance, insurance, real estate and leasing

133,400

Forestry, fishing, mining, oil and gas

36,400

Accommodation and food services

181,700