Statistics Canada says B.C. gained 15,300 employed people in August, creating a slight drop in the seasonally adjusted unemployment rate from 11.1 per cent to 10.7.

While that鈥檚 the third month of improvement in a row, it鈥檚 less than June and July and making further gains won鈥檛 be easy, says Ken Peacock, chief economist for the Business Council of B.C. And the end of the federal government鈥檚 Canada Emergency Response Benefit (CERB) is going to have an enormous impact.

鈥淚f this were normal times, a 15,000 upward movement would be quite good, even kind of strong,鈥� Peacock said in an interview with Black Press Media Sept. 4. 鈥淏ut in this current context, it鈥檚 such a dramatic pull-back from the previous couple of months. It speaks to exactly what we鈥檝e been concerned about, that the low-hanging fruit in terms of rehiring has been accomplished, and we鈥檙e going to see sluggish job growth from here on out.鈥�

鈥淭his is going to force people back to work, but the question is are the jobs going to be there for them.鈥� - 's Ken Peacock

鈥� Tom Fletcher (@tomfletcherbc)

Peacock notes that 1.15 million people in B.C. applied for CERB since it was offered in spring, with few barriers to receiving $2,000 per month to offset lost income during the pandemic.

鈥淭hat鈥檚 45 per cent of the pre-COVID workforce, so nearly half of all employed people in B.C. at some point have claimed the CERB,鈥� he said. 鈥淭his is going to force people back to work, but the question is are the jobs going to be there for them.鈥�

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Statistics Canada鈥檚 breakdown by city shows similar gains as the national job picture. Victoria鈥檚 unemployment rate went from 11.1 per cent to 10.3, 琉璃神社鈥檚 fell to nine per cent from 10 and Abbotsford-Mission barely moved from 8.3 per cent to 8.2.

CERB was originally to run out at the end of August, but Prime Minister Justin Trudeau announced a four-week extension on Aug. 20, with a promise of a transition to a revised program.

The federal government is making Employment Insurance more accessible and available for self-employed people, but it鈥檚 nowhere near a replacement for the CERB, Peacock said. And B.C.鈥檚 $1.5 billion business relief fund may sound like a lot but it is modest compared to the federal wage support and other pandemic programs that are also due to wind down.

tfletcher@blackpress.ca
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