Kelowna’s jobless rate spikes; one in ten off sick nationally

Kelowna’s unemployment rate has surged in recent months and is now one of the worst in the country.

Jobs data released by Statistics Canada on Friday shows the unemployment rate for the city in January at 7.2 per cent, up from 5.7 in December and 4.4 in November.

All measurable characteristics paint a less than rosy picture for the city’s labour force.

The number of unemployed people in Kelowna is estimated at 8,200, up from 6,500 in December. The labour force itself has fallen, too, from 114,800 to 113,200. This number reflects the amount of people who are either working or actively looking for work.

The trend is somewhat reflected nationally, with the jobless rate jumping half a percentage point to 6.5 per cent from 6 per cent in December 2021. This is the first increase since April 2021.

The national agency said the rapid spread of Omicron forced many jurisdictions to implement strict public measures.

The losses in January were entirely among private sector employees, with steep declines in the accommodation and food services, information, culture and recreation industries.

Most notably, StatsCan said one in ten employees were absent from work for all or part of the January reference week due to illness or disability. This is approximately one-third higher than the average observed in the month of January from 2017 to 2019.

The number of employees who worked less than half their usual hours climbed by 620,000 or two-thirds, the largest increase since March 2020.

In British Columbia as a whole, however, the job market is less bleak. In January, the unemployment rate fell to 5.1 per cent, on par with Manitoba for the lowest in the country. This brings the numbers back to pre-pandemic levels.

“In the near future, we'll be sharing our economic plan built for and by British Columbians that directs growth toward building an inclusive and sustainable economy by investing in our greatest asset: British Columbians,” Jobs Minister Ravi Kahlon said in a statement.

In a note to clients, CIBC senior economist Andrew Grantham said given the sector and provincial composition of Friday’s employment decline, “we remain confident that jobs will return as restrictions continue to be lifted.”

“We suspect that the Bank of Canada will feel the same way and proceed with a rate hike in early March despite today's weak figures.”