1.1 BC Labour Market Trends
An analysis of the external factors impacting industry partner engagement
Highlights
Employment in BC was down 170,000 jobs in August 2020 compared to August 2019. Part-time jobs were more easily retained, with the decline being more than twice as high for full-time workers. Women and youth have been the most impacted, with 1 in 4 young workers unable to find work. Typically, youth unemployment is twice as high as the regional unemployment rate, but it was 3 times as high during the pandemic.
The economic impact of Covid-19 has disproportionately affected young people aged 15-24. While youth typically have increased workplace barriers, the service sector with lower wages and more part-time jobs that usually hire youth, like hospitality, accommodations, food services, travel, and tourism, have been the most impacted during this economic downturn.
The COVID-19 pandemic has devastated industries that require high density and close interaction — a prerequisite for much of the service sector. While innovative changes to business models such as increased digital offerings and physical space alterations have helped, the situation remains dire for some industries.
In BC, the three hardest-hit service industries in August were:
- Information, culture, and recreation, which includes media production and entertainment businesses (-31.6%)
- Business services, which encompass building maintenance and administration (-18.0%)
- Other services, such as household and personal services (-13.3%).
BC & Vancouver Island Summary – Comparing 2019 to 2020
Industry Disruption
- BC’s service sector was heavily disrupted, with a 7.6% decline in jobs.
- Service sector jobs like Information, Culture, and Recreation; Business and Building Support; and Other Services topped the list.
- Jobs in the Other Services include estheticians, hairstylists, massage therapy, cleaning, and maid services.
- Workers in Information, Culture and Recreation and Other Services tend to be younger than those in other industries, and temporary employment is common.
- Many lower-wage, part-time service jobs that require human interaction were shuttered.
- 1 in every 2 hospitality jobs were lost.
- The BC goods sector, Forestry, Mining, Wood Products saw a 2.6% decline compared to 2019.
- Manufacturing with a 1.4% decline was less impacted than previous economic downturns.
- One of the pandemic’s legacies is underemployment.
Vancouver Island & Coast Summary
Vancouver Island Highlights
- Vancouver Island’s unemployment rate in Aug of 2019 was 4.2%, and in Aug of 2020, it was a staggering 10.3%.
- With the region’s overall stable economy, the rate remains one of BC’s lowest unemployment rates.
- The decline was the same in Greater Victoria and the rest of the Island, but concentrated in different industries.
- Job losses on the Island were entirely concentrated in the service sector – the sector that employs the highest number of 18-24 year-olds.
- Victoria and Vancouver Island, with their strong hospitality and tourism industries, were more impacted than the rest of the province with 33.2% of job losses in Other Services, Accommodation & Food, and Information, Culture & Recreation.
- While innovative changes to business models such as increased digital offerings and physical space alterations have helped, the situation remains dire for some industries.
Key Take-Aways For Job Developers
- As the economy recovers, smaller to medium-sized businesses on Vancouver Island will have an increasing need for savvy digital skills tech skills in addition to their other skills clusters.
- The pandemic has created unique opportunities for academic institutions in Co-op and Career Services to build new partnerships with employers who may not have considered working with students.
- As businesses pivot operations and adjust strategies, there is an increased need for digital native skill sets, fresh ideas, energy, and collaboration that students can bring to organizations.
- WIL Job developers engaging with industry should highlight the value of partnerships as we collaboratively build back better.
- WIL funding and wage-subsidies will continue to be an important key message.
- The most useful resources in enabling WIL student hiring during the next 6-12 months:
- Access to wage subsidies to hire/engage students (61% thought it would be extremely or very useful)
- Help navigating various wage subsidies and submitting requests for funding (57%)
- Help navigating types of WIL programs (39%)
- Help navigating the process for engaging WIL students (35%)
The pandemic has created unique opportunities for academic institutions in Co-op and Career Services to build new partnerships with industry. As businesses pivot operations and adjust strategies, there is an increased need for fresh ideas and energy that students can bring to organizations.
Job Postings – 2020 vs 2019
- Summer 2020 saw Indeed job postings down 20% compared to Summer 2019.
- Job postings continue to increase; November’s number of Indeed job postings were only down 8% compared to last year.
- In April 2020, indeed was down 64% in new job postings compared to April 2020.
- New job postings in November 2020 are up 9% compared to 2019 (and November is typically not a peak hiring time of year), signaling that many employers are looking ahead to next year.
- Jobs in most sectors continue to improve with the most significant increases in loading and stocking, production and manufacturing, software development, and customer service.
- Manufacturing and production are up 6% in November 2020 compared to October 2020 and up 4% compared to the same time last year.
- HR, Admin Assistance, and Installation are up since last month but considerably down compared to the previous year.
- Roles like AA, clerical, and Installation & Maintenance are at risk of disruption by automation over the long term. Typically in downturns, organizations review their business processes to see where they can automate, streamline and cut operating costs.
- Disruption to business practices caused by COVID-19 restrictions will likely increase automation.
- Organizations are also looking to see how to do more with less, as is the case with management roles.
- Sport has been consistently down throughout the pandemic.
- Food prep and service continues to struggle – down 35% compared to last year.
Disruption to business practices caused by COVID-19 restrictions will likely increase automation.
C.D. Howe Institute, 2020
Section 1: Research & Analysis
1.2 Automation