While Canada's national economy celebrated the addition of tens of thousands of new positions, the city of Kelowna in British Columbia is grappling with a deepening employment crisis. Recent data reveals a startling divergence, with Kelowna's jobless rate soaring to levels not seen since the peak of the pandemic.
Stark Contrast: Kelowna's Struggle vs. National Growth
According to the latest figures, Kelowna's unemployment rate has surged to 11%. This marks a significant rise from 9.3% the previous month and overshadows the city's pandemic-era highs. Castanet reports that approximately 16,200 residents across the Metro Kelowna region, spanning from Peachland to Lake Country, are now actively searching for work.
This local distress stands in sharp opposition to the broader Canadian labour picture. Statistics Canada announced that the national economy added 54,000 jobs in November, causing the country's overall unemployment rate to dip to 6.5%. The national growth was driven by sectors like health-care and social assistance, which gained 46,000 jobs, and a rise in part-time employment and youth hiring.
Understanding the Local Economic Downturn
Experts are puzzled by Kelowna's opposing trajectory. Ross Hickey, an associate professor at the University of British Columbia Okanagan, stated he was unsure why the city is losing jobs while the nation creates them. He emphasised that economists typically look at longer-term trends rather than monthly fluctuations, which can be influenced by sampling variations in labour force surveys.
Castanet's data illustrates a steady and concerning climb in Kelowna's jobless rate:
- August: 4.1%
- October: 9.3%
- November: 11%
Interestingly, the city's labour force also expanded from 130,000 to 147,800 during this period, meaning more people entered the job market even as opportunities dwindled.
Key Sectors in Crisis: Construction and Education Hit Hard
Local business leaders point to severe contractions in core industries. George Greenwood, CEO of the Kelowna Chamber of Commerce, highlighted full-time job losses across major sectors. He described a paralysed homebuilding industry and a significant slowdown in construction and real estate activity.
Both Kelowna and West Kelowna have witnessed substantial drops in building permit applications. Greenwood noted that several large multi-year projects have concluded without new ones to replace them, leaving construction workers stranded.
Furthermore, the post-secondary education sector is facing its own challenges. Local universities and colleges have been forced to cut staffing levels due to a decline in international student enrolment. Professor Hickey noted that these cuts have a ripple effect, reducing direct employment and the associated spending that supports the wider local economy.
Broader Pressures and Future Concerns
The situation may deteriorate further without intervention. Greenwood warned of the impact of ongoing trade uncertainties, particularly tariffs affecting lumber, steel, aluminium, and autos. This uncertainty is causing local businesses to delay crucial investment decisions, stifling potential recovery.
In summary, as Canada displays economic resilience heading into the year's end, Kelowna finds itself moving in the opposite direction. The simultaneous contraction of its construction, real estate, and education sectors underscores a localized economic challenge that defies the national trend of job growth and recovery.
