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

The Williams Lake Skating Club is thrilled to introduce new coach Brenda Boulin (right) to its team. Boulin joins head coach Joanne Macnair (centre) and coach Breanna Davidson. (Photo submitted)
Williams Lake Skating Club welcomes new coach to team

WLSC longtime head coach Joanne Macnair is thrilled to welcome Brenda Boulin back home

While the weather in Williams Lake wreaked havoc on roads and flooded homes this week, the swans didn’t seem to mind it at all. (David Fait photo)
Waterlogged: Williams Lake downright soggy after days of rain

October has seen an unusual amount of rain fall in the Cariboo this year

Roberts Drive resident Lisa Tarlings awoke at 6 a.m. Thursday, Oct. 29 to water roaring down the driveway. She and other residents began working to try and divert the water off the road into the ditch. (Monica Lamb-Yorski photo - Williams Lake Tribune.
‘I could hear the water roaring outside’: Williams Lake homes flood after snow, heavy rain

Bette McLennan has lived in her home 41 years and this is the worst it’s ever been

Residents of Riske Creek came to the rescue of a truck driver who slid off Highway 20 in icy conditions with a load of calves Tuesday night (Oct. 27). (Facebook photo)
Riske Creek residents rush to scene of overturned cattleliner on Highway 20 Tuesday night

Residents rounded up cattle and directed traffic in the dark during a heavy snowfall

Sooke’s Paul Larouche enjoys gold panning along the Sooke River, looking for small treasures. (Aaron Guillen/News Staff)
VIDEO: Island man finds niche audience by gold-panning on YouTube

Paul Larouche, 29, with over 215,000 subscribers, opens up about his journey

Health care employees take extensive precautions when working with people infected or suspected of having COVID-19. THE CANADIAN PRESS/Chris Young
WorkSafeBC disallows majority of COVID-19 job injury claims

Health care, social services employees filing the most claims

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

Conservative leader Erin O’Toole rises during Question Period in the House of Commons in Ottawa on Wednesday October 28, 2020. (Adrian Wyld/The Canadian Press)
Conversion therapy ban gets approval in principle, exposes Conservative divisions

Erin O’Toole himself voted in favour of the bill, as did most Conservative MPs

CBSA. (Black Press Media File)
4 sentenced in B.C. steroid smuggling, distribution ring that spilled into U.S.

Canadian Border Services Agency announced the results of a lengthy investigation it called ‘Project Trajectory’

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Search and Rescue Technicians carry a stretcher to the CH149 Cormorant during a 442 Squadron Search and Rescue Exercise in Tofino on February 28. (Photo by: Cpl Joey Beaudin, 19 Wing Imaging, Comox)
Father and son found dead after weeklong search near Pemberton

The father and son had set out for a day of mushroom picking last Thursday

A full moon rises over Mt. Cheam on Saturday, Feb. 8, 2020. (Jenna Hauck/ The Progress)
Rare full moon, Daylight Saving makes for a uniquely spooky Halloween – despite COVID-19

We can’t host costume parties but this weekend is still one for the history books

A woman wears a face mask and plastic gloves while browsing books as a sticker on the floor indicates a one-way direction of travel between shelves of books at the Vancouver Public Library’s central branch, after it and four other branches reopened with limited services, in Vancouver, on Tuesday, July 14, 2020. (THE CANADIAN PRESS/Darryl Dyck)
B.C. reports 234 new COVID cases, 1 death of senior who had attended small birthday party

Roughly 5,700 people are isolating due to being exposed to a confirmed case

Most Read