Across Canada, headline statistics suggest the labour market has recovered from the COVID recession and in many respects improved since then. However, a closer look at the numbers complicates the story. As noted in a recent study published by the Fraser Institute, in all 10 provinces the rate of job growth in the government sector has exceeded growth in the private sector. Nowhere is that more true than British Columbia, where nearly all net job creation since the start of the pandemic has occurred in the government sector while private-sector job growth has been essentially nonexistent.
Let’s first look at aggregate job numbers. Between the onset of the COVID recession in February 2020 and June 2023, total employment in B.C. increased by 111,500 jobs. That amounts to a total increase of 4.2 per cent—near the middle of the pack among Canadian provinces (these statistics include all levels of government—federal, provincial and municipal).
But again, nearly all these jobs were created in the government sector, which is responsible for 104,400 out of these 111,500 additional jobs. By comparison, the private sector (including self-employment) saw a net increase of just 7,100 jobs.
Put another way, more than 90 per cent of job growth in B.C. was the result of government hiring.