During COVID times, especially, the ‘State of the Island’ differs greatly sector by sector.
The Vancouver Island Economic Summit concluded Thursday, Oct. 28, with the annual presentation of the State of the Island report from Susan Mowbray, senior economist with MNP.
This year’s report highlighted “the sectoral nature of the impacts of COVID-19.” Whereas pandemic health restrictions harmed industries such as tourism, service, arts and entertainment, recreation and transportation industries, other sectors such as health and certain financial and professional services that transitioned to remote work environments reported growth.
Mowbray recalled that last year’s State of the Island report came in more uncertain times, when different pandemic restrictions were in place and vaccines weren’t yet available.
“We definitely have more clarity on where things are going, but there has not been a single narrative or data point that describes the economic journey we’ve been on or will be on going forward,” she said. “Really, the theme this year is about this ongoing disruption we’re experiencing.”
Increasing adoption of digitization is another theme common across sectors, Mowbray said, and it’s created both challenges and opportunities. In an era of worker shortages, she said, “hybrid” business models that incorporate some remote work can be helpful.
“Employers need to adapt to our new labour market conditions. They need to be creative,” she said. “For employers who can have part of their staff working remotely, that’s a way for them to actually attract, potentially, and retain staff.”
She added that the construction industry, for example, has shown technological advancements in pre-fabrication that creates efficiencies and reduces waste.
“We’re going to see increasing adoption of technology in areas where we never would have expected it before, and that’s actually good for our productivity,” Mowbray said.
Conversely, some workers have struggled to keep up with technology and that is one of the reasons for the labour shortage, she said, as there are gaps in digital skills.
“It’s areas that might come as a surprise. Something as simple as knowing how to process an online order if you’re a retailer … or maybe it’s how to use a tablet if you’re an electrician and you’re doing your invoices,” she said.
On the Island, the administrative, professional, scientific and technical services added jobs between 2019 and 2021, whereas employment numbers dropped in construction, hospitality and retail.
Mowbray was surprised by the construction job losses, but said they can be attributed to the completion of some large-scale projects on the Island, and also to supply chain problems.
As for the forestry sector, Mowbray said production is expected to remain stable at 2019-2020 levels following a period of persistent decline before that.
The Island’s unemployment rate in the first half of 2021 was 6.5 per cent, below B.C.’s rate of 7.3 per cent, and rebounding from an 8.7-per cent unemployment rate during 2020. Because of the Island’s aging population, though – 25 per cent of residents are 65-plus – the Island has the lowest employment and labour force participation rates in the province.
The Island’s population grew more modestly last year than during the previous five years, but the Island’s 1.2-per cent population growth was still slightly above B.C. rate of 1.1 per cent. Alberni-Clayoquot, Comox Valley and Capital regional districts were the Island’s fastest-growing regions at 1.3 per cent last year, with Nanaimo and Strathcona close behind at 1.2 per cent.
OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.
However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.
The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.
Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.
The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.
The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.
This report by The Canadian Press was first published Oct. 17, 2024.
OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.
In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.
The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.
Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.
In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.
It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.
This report by The Canadian Press was first published Oct 16, 2024.
OTTAWA – Statistics Canada says manufacturing sales in August fell to their lowest level since January 2022 as sales in the primary metal and petroleum and coal product subsectors fell.
The agency says manufacturing sales fell 1.3 per cent to $69.4 billion in August, after rising 1.1 per cent in July.
The drop came as sales in the primary metal subsector dropped 6.4 per cent to $5.3 billion in August, on lower prices and lower volumes.
Sales in the petroleum and coal product subsector fell 3.7 per cent to $7.8 billion in August on lower prices.
Meanwhile, sales of aerospace products and parts rose 7.3 per cent to $2.7 billion in August and wood product sales increased 3.8 per cent to $3.1 billion.
Overall manufacturing sales in constant dollars fell 0.8 per cent in August.
This report by The Canadian Press was first published Oct. 16, 2024.
