Youth Employment Crisis in B.C.: Why Young Workers Are Leaving the Job Market

B.C. is facing a significant challenge as young workers are stepping back from the labor market due to a lack of available jobs, particularly in the private sector. According to Statistics Canada’s labor market survey for June, the province lost 21,600 workers last month.

The Decline in Youth Employment

While 18,000 youth between the ages of 18 and 24 joined the province's workforce in May, even more left it in June, with 18,500 young people stopping their search for a job. Jairo Yunis, director of policy for the Business Council of B.C., noted that this drop explains 86% of the decline in B.C.’s eligible workers over the past month and is primarily due to weak private-sector job growth.

Sector-Specific Job Losses

B.C. gained 5,000 jobs in June, but the gains were uneven across sectors:

• Accommodation and food services added 8,000 new positions.
• Public administration added 4,600 new jobs.
• Manufacturing, transportation, and warehousing each lost 4,800 jobs.
• Health care and social assistance lost 2,100 jobs.
• Construction lost 2,500 jobs.

Municipal Impact

At the municipal level, Vancouver saw a 5,900-person increase in the labor force and a 19,300 increase in employment. However, Kamloops was hit hard with 4,000 people leaving the job market, while Chilliwack, Kelowna, Victoria, and Abbotsford-Mission saw smaller declines.

Government Response

Jobs Minister Diana Gibson acknowledged the challenges faced by certain sectors, attributing them to the ongoing trade war with the U.S. She highlighted government initiatives like the export navigator and trade accelerator programs, as well as recent trade trips to Asia and the U.K., as efforts to support businesses and diversify trade relationships.

Long-Term Trends

Yunis pointed out that B.C. is the only province where youth employment has failed to recover since the COVID pandemic. Since the start of the year, the province has added over 20,000 public-sector jobs but only 9,100 private-sector jobs, a mere 0.5% increase. This stagnation in the private sector is a significant concern for the province's economic future.