B.C.’s unemployment rate drops to 5.6% despite trade war woes. Youth jobs still lag, but the province’s economy shows surprising strength and resilience.
B.C. Jobless Rate Falls, Even As Trade Tensions Rise
A Surprising Upswing in the Labour Market
In an unexpected twist, British Columbia’s job market is proving remarkably resilient — even as the trade war between the U.S. and Canada heats up.
According to the latest Labour Force Survey from Statistics Canada, released Friday (July 11), B.C.’s unemployment rate fell sharply in June to 5.6%, a notable 0.8 percentage point drop from May. Meanwhile, the employment rate edged up to 61.4%, showing that more British Columbians are actively participating in the workforce.
While job growth is one factor, demographic shifts like retirements are also shaping the statistics.
National Trends: Stability Amid Global Uncertainty
Canada’s national unemployment rate dipped slightly as well, settling at 6.9%, down by 0.1 percentage points. Interestingly, both Canada and the U.S. saw minimal impact from escalating tariffs, with each reporting a 0.1 percentage point decline in joblessness last month.
However, a broader look reveals Canada’s unemployment rate is now 0.3 points higher than a year ago, while the U.S. rate has remained flat. This divergence signals that although both economies are weathering the storm for now, long-term effects may yet unfold.
Government Reaction: Growth Meets Growing Pains
B.C.’s Minister of Jobs, Economic Development and Innovation, Diana Gibson, credits the province’s economic backbone for holding steady. She sees the latest data as a testament to B.C.’s adaptability.
“When I first came into office, the economic outlook was sunny — rates were dropping, inflation was easing, and businesses were ready to grow,” she said. “But the tariffs changed the landscape quickly.”
Despite strong hiring, Gibson cautioned that looming threats — such as U.S. President Donald Trump’s proposed 35% tariffs on Canadian goods — continue to cast a shadow. Just the threat of additional tariffs, she warned, can freeze business decisions and choke investment.
Youth Unemployment: A Persistent Challenge
Not all the news is bright. The job market still poses a challenge for youth aged 15 to 24, a demographic that has long struggled with higher unemployment.
Last month saw some improvement: youth unemployment fell from 16.6% to 13%, a sharp 3.6 percentage point drop. But Gibson stressed that 13% is still far too high.
“We want to see young people landing those essential first jobs — whether it’s a summer gig or a stepping stone into their careers,” she said.
Trade Within Canada: A Work in Progress
Beyond the border battle, another front remains open — within Canada itself. B.C. continues pushing to remove interprovincial trade barriers and diversify its trading partners.
Gibson, fresh from meetings in Quebec City with provincial counterparts, reported progress. While Prime Minister Mark Carney aimed for full interprovincial free trade by July 1 — a goal missed — steps have been taken.
B.C. has now dropped 2 of its 15 exceptions to the Canada Free Trade Agreement. These exceptions allow provinces to protect certain industries, and Gibson said some may still be necessary to safeguard local economic interests.
Looking Ahead: Resilience vs. Risk
For now, B.C.’s economy is bending without breaking. But with global tensions rising and tariff threats looming, the province walks a fine line.
As Gibson put it, “Uncertainty isn’t a friend to business.” Yet, B.C.’s latest labour numbers suggest that determination, adaptability, and a bit of grit may just be enough to weather the storm.
