Kelowna's unemployment rate tops major Canadian cities despite June job gains

Young workers a bright spot in June jobs report

Kelowna continues to have the highest unemployment rate among Canada's major urban centres, even as the region added jobs in June.

Statistics Canada's monthly Labour Force Survey reported the Kelowna census metropolitan area gained about 2,300 jobs last month. However, with roughly 2,900 more job seekers entering the labour market, the unemployment rate climbed to 9.2 per cent from nine per cent in May.

The Kelowna Chamber of Commerce said the numbers reflect a growing community where job creation has not kept up with demand.

"We're seeing more people looking for work than there are available jobs," said interim CEO Ester Pike. "Kelowna remains one of the more desirable places to live in British Columbia, so we continue to see people moving here despite the softer labour market."

Pike said several factors are contributing to the slowdown, including reduced construction activity, recent program cuts at the University of British Columbia Okanagan and Okanagan College, and mounting financial pressures on small businesses.

She notes small businesses make up about 85 per cent of the chamber's membership, meaning hiring slowdowns are felt quickly across the local economy.

"It's a challenging time in terms of staffing. It means that the trend that we're seeing with part-time work becoming the norm more than full-time work." Pike said. "Continued investment in small business is still critical because it drives jobs and economic activity."

B.C.’s unemployment rate dropped to 6.5 per cent from 6.8 per cent last month.

Kamloops' unemployment rate climbed to 6.5 per cent from 5.9 per cent after the region lost about 400 jobs.

B.C.'s March unemployment rate hit 6.7%, highest since pandemic: report

Chilliwack's unemployment rate rose to eight per cent from 7.7 per cent, while Abbotsford-Mission increased to 8.3 per cent from 7.8 per cent.

Victoria also recorded a modest increase, with its jobless rate edging up to 4.4 per cent from 4.1 per cent.

Vancouver was one of the few bright spots, with unemployment dipping slightly to 6.6 per cent from 6.7 per cent.

Nanaimo posted the province's largest improvement, as its unemployment rate fell a full percentage point to 7.4 per cent from 8.5 per cent.

Opposition highlights public-sector hiring

Kelowna-Mission MLA and Conservative critic for economic development Gavin Dew said Kelowna's unemployment rate is a reflection of broader economic challenges across British Columbia.

"We've seen growth in public-sector employment while the private sector has been static or, at times, shrinking. That balance is really important," Dew said.

Dew argued that B.C. continues to struggle with weak private-sector job creation, making it harder for young people and others entering the workforce to find employment.

He also criticized the provincial government's economic strategy.

"We don't seem to have a coherent economic strategy. We don't have a youth jobs plan right now in this province, and we don't have a government that really seems to understand what creates conditions for economic growth," Dew said.

Despite ongoing challenges for young workers, Statistics Canada's June survey offered some encouraging signs.

Employment among Canadians aged 15 to 24 increased by 33,000 jobs during the month, pushing the youth unemployment rate down 0.7 percentage points to 12.7 per cent.

The summer job market also showed signs of improvement. The unemployment rate for students planning to return to school this fall fell to 15.3 per cent in June, down 2.1 percentage points from a year earlier.

Economy 'shows resilience by creating jobs': province

In a statement, B.C. Jobs Minister Ravi Kahlon said the province recorded the largest increase in youth employment in Canada last month, and two-thirds of all new positions were full-time jobs.

“In the past two months, B.C. has created 33,000 new jobs [and] continues to lead the country with an average hourly wage of $38.63, the highest among provinces," Kahlon said in the statement.

He also said recent economic activity should be reflected in future jobs data.

"The opportunities created this month – from the FIFA World Cup 2026 and new trade connections, to major investments in infrastructure, critical minerals and defence supply chains – are helping drive prosperity for people in British Columbia for decades to come."

With files from Tge Canadian Press