the rennie landscape - fall 2022

economy

ASYMPTOTIC GOODS AND SERVICES EMPLOYMENT While employment in British Columbia exceeded its pre-pandemic level many months ago, the number of jobs province-wide remains below its pre-pandemic trend.

By June 2021, employment in British Columbia had, in a sense, recovered from the crater caused by the pandemic. Specifically, the province’s employment base consistently exceeded 2.64 million jobs (the scale of employment in February 2020) each month thereafter, with the number of jobs generally growing from month-to-month since then. This isn’t the whole story, however. Two observations are worth noting as they relate to high-level employment trends in BC. The first is that total employment has not fully gotten back on track since the pandemic— and by that we mean, it hasn't achieved the

pre-pandemic trend in job counts that we would have seen in the absence of the pandemic (and all else being equal). In aggregate, service sector employment is still 86,000 jobs (4%) below trend as of August 2022, while goods sector employment is lagging by 31,000 jobs (6%). The second takeaway from the most recent data is the retreat in employment we saw in August, with there being 28,000 fewer jobs province-wide (on a seasonally-adjusted basis) than in July. Whether this is merely a blip or the beginning of a new trend deserves watching in the coming months.

ON THE MEND, BUT STILL OFF-TREND: PART I

2,500

1,000

pandemic begins EARLY 

900

2,000

800

services job gap -86,000

700

1,500

600

500

goods job gap -31,000

1,000

400

300

500

200

100

0

0









ACTUAL EMPLOYMENT, SERVICES LEFT AXIS

ACTUAL EMPLOYMENT, GOODS RIGHT AXIS

PROJECTED EMPLOYMENT

DATA: EMPLOYMENT BY INDUSTRY, MONTHLY, SEASONALLY-ADJUSTED, BRITISH COLUMBIA

SOURCE: STATISTICS CANADA. TABLE 14-10-0355-01

6

rennie.com

Made with FlippingBook - professional solution for displaying marketing and sales documents online