REBGV Economics Report
The unemployment rate in Metro Vancouver
1 fell to 7.4% in April 2021, which is 1.2 percentage points below the average for Canada’s six largest metropolitan areas.
2 With COVID-19 restrictions expected to ease ahead of the summer months, it’s anticipated that this relatively rapid decline in the unemployment rate will continue throughout the region in the latter half of 2021.
Like the unemployment rate, the employment rate for prime-age workers (ages 25-54)
3 continues to move towards pre-COVID-19 levels. Job growth for workers in this age group is particularly important for the housing market, because they make up the majority of first-time and move-up buyers.
"Strong job growth is supporting rising wages and income across Metro Vancouver today. With above-average labour market conditions, compared to Canada’s other large centres, the region should attract in-migration from across Canada and abroad as governments begin to loosen mobility restrictions. "
Keith Stewart, REBGV economist
Job losses due to the onset of the COVID-19 recession in the spring of 2021 were markedly different between industries with typically higher versus lower wages.
4 In April, there were 7% more jobs in higher wage industries compared to pre-pandemic February 2020. Jobs in lower wage industries, which include “high contact” industries such as accommodations and food services and retail trade have partially recovered, but remain at only 93% of the positions that exsisted in February 2020.
"Jobs in higher-wage industries have proven more resilient to the COVID-19 downturn than was expected when the pandemic began. This divergence has helped underpin the elevated home sales volumes we’ve experienced over the last 12 months."
Keith Stewart, REBGV economist
[1] Metro Vancouver is defined by Statisitics Canada as the Vancouver Census Metropolitan Area (CMA)
[2] Metropolitan areas with a population greater than 1 million in the 2016 Census of Canada
[3] Prime age employment helps control for changes in trends related to changing demographics such as population aging
[4] Higher wage industries are: Finance and insurance; Information and cultural industries; Mining, quarrying, and oil and gas extraction; Professional, scientific, and technical services; Public administration and Utilities. Lower wage industries are: Accommodation and food services; Agriculture, forestry, fishing, and hunting; Arts, entertainment, and recreation; Business, building, and other support services; Other services (except public administration); and Retail trade.