Pub patio in Victoria reopens with widely spaced tables, June 2020. B.C.’s summer job recovery is slowing down. (Tom Fletcher/Black Press)

New B.C. jobs won’t be enough when CERB ends: economist

Unemployment double what it was before COVID-19

Statistics Canada says B.C. gained 15,300 employed people in August, creating a slight drop in the seasonally adjusted unemployment rate from 11.1 per cent to 10.7.

While that’s the third month of improvement in a row, it’s less than June and July and making further gains won’t be easy, says Ken Peacock, chief economist for the Business Council of B.C. And the end of the federal government’s Canada Emergency Response Benefit (CERB) is going to have an enormous impact.

“If this were normal times, a 15,000 upward movement would be quite good, even kind of strong,” Peacock said in an interview with Black Press Media Sept. 4. “But in this current context, it’s such a dramatic pull-back from the previous couple of months. It speaks to exactly what we’ve been concerned about, that the low-hanging fruit in terms of rehiring has been accomplished, and we’re going to see sluggish job growth from here on out.”

Peacock notes that 1.15 million people in B.C. applied for CERB since it was offered in spring, with few barriers to receiving $2,000 per month to offset lost income during the pandemic.

“That’s 45 per cent of the pre-COVID workforce, so nearly half of all employed people in B.C. at some point have claimed the CERB,” he said. “This is going to force people back to work, but the question is are the jobs going to be there for them.”

RELATED: Trudeau says CERB extension delayed some payments

RELATED: Deferred B.C. sales, carbon and fuel tax due Sept. 30

Statistics Canada’s breakdown by city shows similar gains as the national job picture. Victoria’s unemployment rate went from 11.1 per cent to 10.3, Kelowna’s fell to nine per cent from 10 and Abbotsford-Mission barely moved from 8.3 per cent to 8.2.

CERB was originally to run out at the end of August, but Prime Minister Justin Trudeau announced a four-week extension on Aug. 20, with a promise of a transition to a revised program.

The federal government is making Employment Insurance more accessible and available for self-employed people, but it’s nowhere near a replacement for the CERB, Peacock said. And B.C.’s $1.5 billion business relief fund may sound like a lot but it is modest compared to the federal wage support and other pandemic programs that are also due to wind down.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureCoronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

No plans to discontinue bus service, says Pacific Coastal

The company will continue to provide transfers to Anahim Lake on weather days

New bus service announced for Bella Coola

The shuttle will run to Williams Lake and Kamloops

Unofficial holidays: Here’s what people are celebrating for the week of Sept. 27 to Oct. 3

World Farm Animals Day, Drink Beer Day and Virus Appreciation Day are all coming up this week

Bella Coola Heli Sports now offering yacht-based heliskiing starting at $319K

BCHS has partnered with Maple Leaf Adventures and the MV Cascadia

Liberals and Greens yet to announce North Coast candidates

North Coast candidates have until two weeks before the election to name contenders

Weekend sees 267 cases, 3 deaths in B.C.; Dr. Henry says events leading to COVID spread

There are currently 1,302 active cases in B.C., while 3,372 people are under public health monitoring

Liberals seek to fast track new COVID-19 aid bill after CERB expires

Government secured NDP support for legislation by hiking amount of benefits by $100 to $500 per week

B.C. VOTES 2020: Echoes of HST in B.C. debate over sales tax

Cannabis, tobacco, luxury cars still taxed in B.C. Liberal plan

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

She warned her son about toxic drugs, then he was dead

Donna Bridgman’s son died at the age of 38 in Vancouver

B.C. food and beverage producers set record sales in 2019

Farmed salmon again leads international exports

Most Read