Positive Economic Indicators
December 1, 2008
NEW FIGURES
Major Projects Inventory Continues Record Pace
Major construction projects have increased in B.C. for the 21st straight quarter. In the third quarter of 2008, there were 863 major capital projects worth an estimated $174.7 billion, planned or underway in B.C. This is an increase of 30 per cent in estimated value from this time last year.
(Ministry of Technology, Trade and Economic Development, Major Projects Inventory September Edition)
Oil and Gas Rights Record Sales
The fiscal year-to-date sales of oil and gas rights reached a record high of over $2.2 billion in November 2008. The November 12 sale generated $114 million, selling 45 parcels covering 24,565 hectares. The average price per hectare was $4,679, up 40 per cent from $2,773 in September of last year.
Employment Growth in Northern B.C.
Employment in B.C.’s North was higher in October 2008 than the same time the previous year. In the North Coast and Nechako regions employment was up 3.3 per cent to 67.5 per cent, while employment in the Northeast rose 5.2 per cent to 75.8 per cent.
(Statistics Canada, Labour Force Survey, November 2008)
CURRENT FIGURES
Conference Board Forecasts Economic Improvement in 2009
In its latest Provincial Outlook report, the Conference Board of Canada expects B.C. to show economic improvement into 2009. Real GDP will expand from 1.2 per cent in 2008 to 1.8 per cent in 2009. According to this forecast, B.C. ranks fourth for Real GDP growth in 2008 after Saskatchewan (5.2 per cent), Manitoba (2.7 per cent) and Newfoundland (1.3 per cent).
(Conference Board of Canada, Provincial Outlook, Autumn 2008)
Another Year of Strong Employment Growth
Full-time employment increased by 9,400 jobs in October, while part-time employment went down by 17,600 jobs. From October 2007 to October 2008, there has been an overall increase of 35,600 more jobs in British Columbia, an increase of 1.6 per cent. In 2007, employment growth in B.C. of 3.2 per cent was second-highest among the provinces – and exceeded the national growth rate of 2.3 per cent. In September, our average weekly wage rate was approximately $800 per week ($790.43) – third-highest in Canada, and a 21 per cent increase compared to the average hourly wage in 2001 ($648.19).
The average hourly wage in B.C. in September 2008 was $21.66 – up by over a dollar ($20.57) from September 2007 and a 17 per cent increase compared to 2001’s average ($17.98). For B.C. youth under 25, the average hourly wage was over $13 ($13.21) – third-highest in Canada.
(Statistics Canada, September 2008)
B.C.’s Population and Interprovincial Migration Continues to Rise
During the second quarter of 2008, B.C. welcomed an estimated 16,847 people, the result of net interprovincial and international migration. The province attracted migrants from the rest of Canada, with a second quarter net gain of 1,669 people. International migration continued to swell B.C.’s population, with a net increase of 15,178 people.
B.C.’s share of total Canadian immigration was 16.7 per cent.
(B.C. Statistics Current Statistics 2008)
B.C.’s Small Businesses Growing
For the sixth consecutive year B.C. experienced small business growth. The total number of small businesses operating in British Columbia in 2007 increased 2.4 per cent over the previous year, the largest increase since 2003. In 2007 B.C. led the nation with 86.7 small businesses per 1,000 people, exceeding the Canadian average of 69.8 per 1,000 people. In 2007 98 per cent of businesses in B.C. were small businesses.
(BC Stats and Ministry of Small Business and Revenue, Small Business Profile 2008)
Exports to Asia on the Rise
In 1998, British Columbia exported $468 million worth of goods to mainland China. In 2007, this number had climbed to $1.805 billion ($1.744 billion domestic exports only). China is B.C.’s second largest import market, after the US (over 22 per cent of B.C.’s total imports come from China). In 2007, B.C. imported over CAD $8.6 billion worth of goods from China, including electrical/electronic machinery and equipment, machinery and mechanical appliances, toys, furniture and household goods, and prefabricated buildings.
B.C.’s merchandise exports to South Korea totalled CAD$ 1.34 billion in 2007, fourth after the US, Japan, and China (almost 4 per cent of B.C. exports go to South Korea). B.C. represents 42 per cent of Canada’s total exports to South Korea, with the top five export categories being resource-based.
Building Relationships
In May, Premier Campbell announced the launch the BC Alumni Ambassadors Network in Beijing. The purpose of the network is to invite alumni from B.C. post-secondary institutions and B.C. expatriates living in China to become ambassadors for British Columbia – fostering more social and business relationships.
In the last fiscal year, the Provincial Nominee Program recruited 434 skilled workers and entrepreneurs to B.C. from China.
(Ministry of Technology, Trade and Economic Development)
Positive Employment News
The province is becoming known for its growing technology sector, which is employing many B.C. workers.
- The Microsoft Development Centre in Richmond officially opened September 2008. It does development and testing of software on all Microsoft software platforms and has 300 employees.
- Nokia Product Development Centre in Burnaby is a premier design centre for Nokia next generation mobile devices and services, with 500 employees
- Redback Networks is an Ericsson Company in Burnaby. It has a research and development campus specializing in software and hardware for network routing products.
Positive Investment News
Businesses are investing in B.C. including,
- The Rio Tinto Alcan in Kitimat, a $2.5-billion investment for the smelter upgrade and expansion. This resulted in 1,000 permanent jobs.
- Canpotex Ltd – Prince Rupert and Vancouver potash export terminals – $300 million invested at the Port of Prince Rupert and $200 million in Vancouver.
- APM Terminals and SNC Lavalin – $2-billion investment at the Roberts Bank 2 Marine Container Terminal.
- Interfor is investing $100 million in its Adams Lake Sawmill.
(Ministry of Technology, Trade and Economic Development)
