7,000 jobs lost in B.C. construction industry
Unemployment is rising across Canada, and while B.C.'s economy is still in better shape than the national average, the province's once-thriving construction industry is taking the brunt of the hit.
In B.C., 7,000 construction jobs were lost last month as condominium projects and other housing developments were put on hold by developers concerned about falling real estate values and reluctant consumers.
B.C.'s jobless rate followed the national trend and headed upward in December, climbing four-tenths of a percentage point to 5.3 per cent. Statistics Canada said Friday.
Finance Minister Colin Hansen noted B.C. is still well behind the national figure of 6.6 per cent unemployment but said the latest job losses will complicate planning for the coming provincial budget.
Hansen said that was expected, but B.C. still has more jobs in construction than it did two years ago.
There were some surprises in the job numbers released Friday morning, including job growth in a number of sectors connected to manufacturing and exports, which benefited from the weakening Canadian dollar.
Statistics Canada said that led to a net loss of 7,000 jobs across the province as other industrial sectors balanced each other off. Victoria had the lowest unemployment rate in B.C. at 3.6 per cent.
Across Canada, more than 70,000 full-time jobs were lost in December, the second month in a row of major job cuts attributed largely to the global economic slowdown.
Help promised for unemployed
Hansen promised that those who lost their jobs last month will get support from the province.
"We've put in place job retraining programs. We've put in place supports so that families that have been facing economic challenges today can apply for deferral of their property taxes, for example," he said.
The B.C. government has also promised to get shovels in the ground on public projects as soon as possible to preserve construction jobs, but NDP finance critic Bruce Ralston said the Liberals haven't approved projects quickly enough.
"The premier talked about that in October. But since then, there hasn't been a single announcement of a new project," Ralston said.
Phillip Hochstein of the Independent Contractors and Business Association said he believes the Liberals are moving as quickly as they can.
And he said that while public projects are necessary, only restored consumer confidence can fully revive Canada's construction industry.
He pointed out that public projects represent only about one-sixth of all construction work in B.C. and the construction industry doesn't expect the government to save all their jobs.
"They expect them to increase infrastructure spending, get good value for it and keep a large number of people working, but it's impossible to expect them ... no one expects them to keep everyone working," said Hochstein.