Vancouver Island’s Economy Improving

June 27, 2016

DUNCAN – The CPABC Regional Check-Up, an annual economic report by the Chartered Professional Accountants of British Columbia (CPABC) found that the Vancouver Island/Coast’s economy is picking up after a sluggish year in 2014.

“Most of the growth in our region is happening in Victoria. Last year, we saw an increase of 7,284 new residents last year, with 89 per cent of them settling in the Victoria and Nanaimo areas. Continued population growth and record low interest rates stimulated real estate sales,” said Woody Hayes, FCPA, FCA, partner with Hayes Stewart Little & Company. “Increased tourism activity also added to the region’s economic growth in 2015. A lower Canadian dollar motivated more Canadians to have “staycations” and also attracted higher numbers of American and international visitors.”

Economic growth stimulated job creation in the region. In 2015, the region’s job growth rate was 1.5 per cent, which was on par with Southwest B.C. and above the provincial growth rate of 1.2 per cent. The region’s labour market added 5,300 jobs in 2015, with the service sector making up the majority of the gains. Gains in the service sector were led by jobs created in the health care & social assistance, transportation and warehousing, and finance, insurance, real estate and leasing industries. These gains indicate an increase in demand for essential services that are driven by population growth.

The goods sector saw an overall gain of 600 jobs in 2015. The construction industry added 3,800 jobs, which offset job cuts in the other four goods industries. The agriculture and manufacturing industries saw a combined loss of 2,800 jobs. Losses in the manufacturing industry were due to a reduction in wood and pulp manufacturing jobs. These losses likely reflect unfilled job vacancies rather than cuts, as the forestry industry remained active. The Port of Nanaimo saw increases of 12.1 and 17.5 per cent in lumber and raw logs export volume in 2015.

Report Highlights:

  • As of September 2015, there were 148 major projects valued at $61.8 billion in the region – 69 projects valued at $47.4 billion were proposed, 57 valued at $11.9 billion were under construction, and 18 valued at $2.5 billion were on hold. Proposed LNG projects comprised more than half or $32.0 billion of total major project value.
  • In 2015, the region’s consumer insolvency rate per 1,000 adults (aged 18 and older) remained unchanged from 2014 at 3.0 per 1,000 adults.
  • There were 28 reported business bankruptcies in the region in 2015 compared to 39 in 2014. This is an indication that the region’s economy is improving.
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