REGIONAL CHECK-UP 2019

(1)

REGIONAL CHECK-UP 2019

Check up on your region’s economy

bccheckup.com

(2)

Workers with at least some post-secondary education enjoy lower rates of unemployment and higher labour force participation. Over the past five years, BC’s educational attainment has improved

considerably.

Biggest Industry by Employment

368,400 323,200 238,400

After impressive gains in 2016 and 2017, job creation slowed across BC largely due to labour shortages.

* YOUTH = Ages between 15 and 24

Due to gains in

Success of the LNG

Canada project will play a key role in attracting and moving forward new investment. Institutional Commercial Goods Services I nd us tria l I nf ra st ru ct ur e R esid entia l

to 4.9 million

1.4%

Growth in housing market, exports, and population continued to

encourage entrepreneurs to establish new businesses across BC. The

softening of the housing market was probably the reason business

investment softened in 2018.

BC’s consumer insolvency rate

has stabilized over the past few

years as economic prosperity

meant more people were better

off.

103 46,245

business insolvencies

new businesses

ALL YOUTH* -0.4ppt -0.4ppt

4.7%

6.6%

(3)

Cariboo's labour force saw considerable improvement in

educational attainment. Some individuals upgraded their skills while those joining the labour force already possessed these

credentials. Many workers without post-secondary education also left the labour force.

CARIBOO

Industrial projects, such as oil & gas and mining, make up the majority of the total project value. Infrastructure Goods Services

to 166,180

0.8%

0.6%

to

80,600

jobs

The region lost 500 jobs in 2018, due to sizeable losses in service

industries.

Goods: +7.7% | Services: -3.4%

11,800 11,500 10,300

0.2% to

_{$10.2 billion}

Industrial

Cariboo's business climate held

steady. Business insolvencies

reached a five-year low.

Consumer insolvency rate reached

its lowest point in over a decade,

but remains well above the

provincial average.

WORK 2018

INVEST 2018

LIVE 2018

ALL YOUTH* -1.8ppt

5.6%

6.2%

-3.0ppt

1

593 business insolvency

new businesses

2,100 WORKERS LEFT THE LABOUR FORCE

(4)

Many individuals without post-secondary education left the labour force, while a large share of new workers had post-secondary

credentials, especially at the bachelor’s level. This pushed the region’s educational attainment rate to the third highest in the province, overtaking Thompson-Okanagan.

KOOTENAY

Mining and commercial projects, such as

accommodation and recreation, make up the majority of the total project value. Institutional Infrastructure Residential Goods Services

to 159,887

1.0%

to

71,200

jobs

After gains made in 2017, the labour market shrank by 700 jobs, due

entirely to losses in the goods sector. Goods: -3.1% | Services: 0%

10,200 9,300 8,300

5.5% to

_{$8.6 billion}

_In du str_ia l C om m er ci al

New businesses in rural areas and

in municipalities such as

Castlegar, Radium Hotsprings,

and Invermere contributed to the

business incorporations growth.

The region’s residents have been

relatively successful in managing

their debt over the past few years.

WORK 2018

INVEST 2018

LIVE 2018

1

605 business insolvency

new businesses

ALL YOUTH* -2.0ppt

5.3%

5.7%

-7.4ppt 2,400 WORKERS LEFT THE LABOUR FORCE

(5)

Northeast BC's labour force is steadily becoming more educated. This is good news for the region, as workers with more education tend to have better longer term job prospects.

NORTHEAST BC

The Site C project and other industrial projects, such as oil & gas and mining, make up the majority of the total project value. Institutional Commercial Goods Services

to 71,817

0.2%

2.9%

to

39,600

jobs

After two years of decline, the

region's labour market expanded by 1,100 jobs.

Goods: -3.2% | Services: +5.4%

6,000 5,000 3,700 3,700

1.4% to

_{$38.6 billion}

In_d us tri al I nf ra st ru ctur e

Business incorporations have

declined over the past five years,

as economic challenges drove

away residents and affected

business prospects.

While the rate of proposals stayed

the same in 2018, the bankruptcy

rate declined a little. The region’s

consumer insolvency rate remains

the highest in BC.

WORK 2018

INVEST 2018

LIVE 2018

2

428 business insolvencies

new businesses

ALL YOUTH* -0.2ppt

5.7%

5.6%

-3.7ppt

Unemployment rate

because

(6)

KOOTENAY

to 159,887

1.0%

to

71,200

jobs

10,200 9,300 8,300

5.5% to

_{$8.6 billion}

New businesses in rural areas and

in municipalities such as

Castlegar, Radium Hotsprings,

and Invermere contributed to the

business incorporations growth.

The region’s residents have been

relatively successful in managing

their debt over the past few years.

WORK 2018

INVEST 2018

LIVE 2018

1

605 business insolvency

new businesses

ALL YOUTH* -2.0ppt

5.3%

5.7%

Unemployment rate

because

Shortages of low-skilled workers drew many individuals with high school or some post-secondary education into the labour force, contributing to a stagnation in educational attainment.

NORTHWEST BC

Industrial projects, such as mining and oil & gas, as well as infrastructure projects, make up the majority of the total project value.

Residents of Northwest BC consistently have the lowest

consumer rates in the province over the past five years.

Consistently low levels of business insolvency since 2013

speaks to the resilience of existing businesses.

Commercial Goods Services

to 98,578

0.3%

1.4%

to

43,100

jobs

Many of the new jobs were part-time positions generated in the service sector.

Goods: -4.4% | Services: +4.2%

5,600 4,900 4,200

.04% to

_{$194 billion}

In d us tria l In fr astr uctu re

WORK 2018

INVEST 2018

LIVE 2018

0

143 business

insolvencies

new

businesses

1

95 business

insolvency

new

businesses

ALL YOUTH* +0.1ppt

5.9%

4.7%

-4.2ppt # OF NEW WORKERS > # OF NEW JOBS

Unemployment rate

because

(7)

The educational attainment level of Southwest BC's labour force has steadily improved over the past decade, and remains the

highest in BC. The slight dip between 2017 and 2018 was likely due to statistical variation.

SOUTHWEST BC

Residential and mixed use projects account for the majority of the total projects value.

Goods

Services

to 3 million

1.5%

Gains in the the goods sector was significantly greater than gains in the service sector.

Goods: +6.3% | Services: +0.2%

230,900 187,200 154,600

9.1% to

_{$76.1 billion}

Industrial Institutional In_fra str_uc tu re C o m mer cial Residential

Economic diversification,

population growth, and active

housing market in Southwest BC

created a positive and sustainable

business environment for

entrepreneurs.

Since the 2008 recession,

Southwest BC’s consumer

insolvency rate has been on a

declining trend and has stabilized

over the past few years.

ALL YOUTH* -0.3ppt +0.2ppt

4.3%

6.7%

JOB CREATION 20,900

67 36,372

business insolvencies

new businesses

LABOUR FORCE 17,200

WORK 2018

INVEST 2018

LIVE 2018

(8)

KOOTENAY

to 159,887

1.0%

to

71,200

jobs

10,200 9,300 8,300

5.5% to

_{$8.6 billion}

New businesses in rural areas and

in municipalities such as

Castlegar, Radium Hotsprings,

and Invermere contributed to the

business incorporations growth.

The region’s residents have been

relatively successful in managing

their debt over the past few years.

WORK 2018

INVEST 2018

LIVE 2018

1

605 business insolvency

new businesses

ALL YOUTH* -2.0ppt

5.3%

5.7%

Unemployment rate

because

Over the past five years, the region’s educational attainment level has generally trended upwards, as the region’s economy expanded and became increasingly diverse.

THOMPSON-OKANAGAN

Residential and

commercial projects, such as accommodation and recreation, make up the majority of the total project value. Goods Services

to 588,143

1.6%

1.7%

to

255,200

jobs

After impressive job gains in 2017, the region lost 4,400 jobs in 2018. Job losses in the goods sector were

entirely responsible for this decrease. Goods: -8.4% | Services: +0.4%

43,600 41,300 27,300

4.0% to

_{$20.6 billion}

Industrial Institutional Infra stru ctu re C om mer cial Reside ntia l

The number of business

incorporations in the region

increased by 2.6% in 2018,

indicating ongoing confidence of

entrepreneurs in the region’s

economy.

Increases in consumer insolvency

was due entirely to an increase in

consumer proposals.

WORK 2018

INVEST 2018

LIVE 2018

15 3,696

business insolvencies

new businesses

ALL YOUTH* -1.0ppt

6.1%

7.1%

(9)

The region’s remarkable job growth and economic diversification over the past five years attracted workers with higher education. This is a record high for the region.

VANCOUVER ISLAND/COAST

Residential and mixed use projects account for the majority of the total projects value. Institutional Commercial Goods Services

to 857,144

1.4%

2.6%

to

396,600

jobs

Population growth, increases in

housing prices, and tourism activity, contributed to gains in service sector. Goods: -6.1% | Services: +4.5%

64,700 63,500 36,100

Labour market added

10,100

full-time jobs

3.3% to

_{$60.6 billion}

I_nd us tri al R esid entia l In fra stru cture

Difficulty in labour recruitment

and retention could be a

contributing factor to the 2.2%

dip in business incorporations.

Consumer insolvency rate

increased for the first time in a

decade. As the economy is stable,

this increase could be the result of

personal circumstances, such as

debt over extension.

ALL YOUTH*

-0.3ppt UNCHANGED

4.7%

6.6%

15 4,313

business insolvencies

new businesses

WORK 2018

INVEST 2018

LIVE 2018

JOB CREATION 10,000 LABOUR FORCE 9,000

(10)

REGIONAL CHECK-UP

SWBC, VICDR, TODR

CONSTRUCTION ACTIVITY

WILL REMAIN STRONG

Economic activity is

expected to stabilize

with a forecasted

GDP growth rate of

1.4%

The region will keep its status

as BC's powerhouse due to

the diversified economy.

The region’s technology and

tourism industries will continue

to drive economic growth.

LNG Canada and other

resource projects will

encourage economic activity

in the region.

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Media Contact

Vivian Tse, Public Affairs Manager

604.488.2647 | [email protected]

Regional Check-Up 2019

As leaders in analyzing and validating information, CPAs are often called upon

to provide independent, fair, and objective information to assist in

decision-making. It is our hope that the report will make a positive public policy

contribution to the province by stimulating debate and discussion about how

to make BC a better place in which to work, invest, and live.

The report is prepared by Chisholm Consulting, in association with Gold Island Consulting. Opinions expressed in the report do not necessarily reflect those of individual chartered professional accountants.