B.C. Loses 20,000 Jobs in September as Construction and Manufacturing Take Biggest Hits

Subhadarshi Tripathy

10/12/20262 min read

British Columbia lost 20,000 jobs in September, accounting for nearly one-third of all employment losses recorded across Canada during the month.

New Statistics Canada data shows the decline marked B.C.’s first monthly drop in employment since March.

Across Canada, employment fell by 68,000 jobs in September.

In B.C., construction, manufacturing and health care and social assistance were among the sectors hit hardest.

Construction and Manufacturing Lead Job Losses

The construction sector lost approximately 9,800 jobs in September.

Manufacturing employment fell by about 8,100 positions, while health care and social assistance shed another 6,800 jobs.

Other industries recording declines included educational services, accommodation and food services, public administration, professional, scientific and technical services, utilities, and transportation and warehousing.

Despite the overall decline in employment, B.C.’s unemployment rate fell slightly by 0.1 percentage points to 6.4 per cent.

Economist Points to Slower Economic Conditions

Bryan Yu, chief economist at Central 1 Economics, said the numbers are consistent with broader signs of weakness in the provincial economy.

“Not a great number,” Yu said.

“Really it aligns with a soft economic environment when we think about some of the newer trade risks that we’ve seen, a pretty slow housing market.”

Yu said the ongoing trade dispute between Canada and the United States could help explain some of the losses in manufacturing.

He added that declining construction employment is also consistent with weakness in B.C.’s housing market.

The accommodation and food services sector may also be coming down from unusually strong summer hiring, he said.

Vancouver hosted World Cup matches earlier this year, creating additional tourism-related employment during the summer months.

Some Sectors Still Added Jobs

Not every part of the labour market moved downward.

Business, building and other support services recorded the largest gain, adding approximately 7,300 jobs.

The information, culture and recreation sector also grew, adding about 4,500 positions.

Yu said he remains cautiously optimistic that major investment projects could help support employment growth next year.

He pointed to LNG Canada’s planned expansion in Kitimat as one project expected to generate additional jobs.

“I don’t think there’s any magic bullet right now in terms of turning around this economy,” Yu said.

“I think there are quite a few challenges when it comes to . . . the business environment that we’re currently in.”

Youth Employment Emerges as Campaign Issue

The September employment numbers are also becoming an issue in B.C.’s provincial election campaign.

NDP Leader David Eby focused on youth employment during a campaign stop in Burnaby on Friday, promising a tax credit for small and medium-sized businesses that hire younger workers.

“The urgency of getting young people into the workforce to give them the experience, the training, the opportunities to be successful is paramount,” Eby said.

B.C. Conservative Leader Lorne Doerksen described the latest employment numbers as “bad news.”

The Conservative Party announced its own proposed tax credit on Saturday, saying it would reward businesses that hire young British Columbians for their first jobs.

“We have a plan to supercharge the economy in British Columbia, to create jobs and put more money in people’s pockets,” Doerksen said.

With B.C. facing slower construction activity, manufacturing pressure and uncertainty around trade, the latest employment report adds another economic issue to the provincial campaign as parties compete over how best to stimulate hiring and business investment.

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