Canadian employment grew by 953,000 jobs in June (5.8%, m/m). This, combined with the increase in May, represents 40 per cent of the jobs lost in March and April. The national unemployment rate fell by 1.4 percentage points to 12.3 per cent from the previous month. The employment gains in June were somewhat evenly split between full-time work (488,000) and part-time work (465,000).

Regionally, all provinces reported an increase in employment as all had substantially eased COVID-19 measures. Ontario and Quebec made up two-thirds of the gain. Strong gains were reported in accommodation and food services, and retail, which were industries hardest hit by the pandemic. However, employment levels in these industries are still below pre-COVID levels. In June, employment rose slightly faster among women than men, but on a cumulative basis, men are at 92 per cent of pre-COVID levels, while women are at 89 per cent. Compared to the same month last year, Canadian employment was down by -8.5% (-1.6 million).

Meanwhile, employment in BC grew by 118,100 jobs (5.4%, m/m) in June, following a gain of 43,000 jobs in the previous month. Gains in the last two months represented 40 per cent of jobs lost in BC in March and April. June’s employment gain brought down the unemployment rate by 0.4 percentage points to 13 per cent. Half of the employment increase was in accommodation and food services (55k), followed by professional services (18k) and retail (16k). This is consistent with the province’s gradual reopening. Compared to one year ago, employment in BC was down by 10% (-267k) jobs.

This was another good news report, as it appears we continue to be on a slow path to recovery. At the same time, much of the gains were in industries that were waiting to reopen. There are still structural changes that need to work their way through the system, as some individuals who were furloughed may now be permanently unemployed. Also important are consumers’ demand for goods and services, which is expected to be hampered by the still 235,000 unemployed individuals in BC.

For more information, please contact: Gino Pezzani.

Canadian housing starts increased by 8% m/m to 211,681 units in June at a seasonally adjusted annual rate (SAAR). The gain in June put starts back at pre-pandemic levels. The trend in national housing starts fell to an average of 199,700 units SAAR over the past six months. Housing starts were up in five of 10 provinces with Ontario driving the increase.

In BC, growth in housing starts was flat in June, following a 29% increase in the previous month. Historically speaking, starts in the province are still robust but have been trending downwards since the fall of 2019. Housing starts have shown resilience during the pandemic and in the near future will depend on demand as unemployment levels remain elevated and as government support programs wind down. Meanwhile, building permits for May were up by 4.4% in the province.

Looking at census metropolitan areas in BC:

Housing starts in Vancouver were down by 5% m/m in June to 23,577 units SAAR. Multi-units were down by 9%, while singles were up by 26%. Compared to last year in June, housing starts were down by 43%, which marks the third consecutive month of negative year-over-year growth.

In Victoria, housing starts were down by 23% m/m to 2,342 units SAAR. Compared to a year ago in June, housing starts were down by 5%.

In Kelowna, housing starts increased by 61% m/m to 2,858. Starts were up by 1% in the region compared to the same time last year.

Monthly housing starts in Abbotsford-Mission were up by 18% at 590 units SAAR. Compared to the same time last year, new home construction was down by 25%.

For more information, please contact: Gino Pezzani.