Statistics
Canada publishes
regional unemployment numbers using two different definitions
of regions. The first is based on "economic
regions" defined in the Labour Force Survey. The
second is based on geographic descriptions determined by
Human Resources and Skills Development Canada (HRSDC). The
figures published for the economic regions are interesting,
but the figures published for the HRSDC
regions have immediate practical application; they are
used to determine the length of benefits in the Employment
Insurance Program.
For
both types of regions, the published regional unemployment
rates use three month moving averages of seasonally unadjusted
data. The seven economic regions in BC and their unemployment
rate for the three month average ending October 2004 are:
Vancouver Island and Coast (7.5%), Lower Mainland-Southwest
(6.9%), Thompson-Okanagan (6.5%), Kootenay (7.5%), Cariboo
(7.3%), North Coast and Nechako (9.5%), and Northeast (4.7%).
It is good news that all of those unemployment rates are
single digit and lower than they were for the average ending
October 2003. The news is not quite as good for the rate
that matters in determining Employment Insurance benefits.
The six HRSDC regions and their unemployment rates are:
Southern Interior (8.5%), Abbotsford (7.1%), Vancouver (6.8%),
Victoria (6.2%), Southern Coastal (10.1%) and Northern (13.0%).
The rate for Abbotsford is higher than it was a year earlier;
two of the six regions still suffer double digit unemployment,
and all but two have unemployment rates higher than the
6.9% seasonally adjusted figure for October (only one is
lower than BC's 6.3% seasonally unadjusted figure for October).
The
number of beneficiaries receiving regular Employment Insurance
benefits is published by Statistics Canada. In August (the
most recent data available), 58,960 beneficiaries were receiving
benefits in BC, a 4.7% increase from July. This was the
first time in a year that the number of beneficiaries increased
in BC.
Despite
being tied up at their Whistler convention, Skills Development
and Labour Minister Graham Bruce was quick to issue a news
release trumpeting the good news contained in the October
Labour Force Survey. As you might have guessed, he chose
to use the economic regions rather than the regions used
to determine Employment Insurance benefits. He also chose
to describe the October numbers as indicating continuing
economic turn around. We should all hope he's right because
that would encourage the government to announce more pre-election
"goodies". Unfortunately, construction alone accounts
for more than the total job growth. In other words, other
industries, especially manufacturing, the resource sector,
retail and wholesale trade, have lost jobs over the last
year. There is room for some cautious optimism but how much
varies by industry and region. It is definitely not true
that BC has broad based economic growth.