Economy

B.C. unemployment rate falls, but Conservatives warn economic concerns remain

Aug 7, 2026 | 9:22 AM

PRINCE GEORGE — British Columbia’s unemployment rate dropped for the second straight month in July, falling from 6.5 per cent to 6.2 per cent as the province added 17,800 jobs. However, the Opposition Conservatives say the headline numbers mask deeper economic challenges facing many regions and young workers.

According to Statistics Canada’s latest Labour Force Survey, B.C. recorded the second-largest job gain in Canada in July and led the country in full-time employment growth, adding 32,500 full-time positions. The province also added 3,100 manufacturing jobs and saw its unemployment rate decline to the fourth-lowest among provinces.

Jobs and Economic Growth Minister Ravi Kahlon said the figures demonstrate the strength of B.C.’s economy despite global uncertainty and ongoing U.S. tariffs.

“Today’s Labour Force Survey underscores the strength and growth of B.C.’s economy,” Kahlon said in a statement, noting that nearly 51,000 jobs have been created across the province over the past three months.

The government also highlighted gains in agriculture, construction, health care and education, along with major projects such as the Tilbury LNG expansion in Delta and Enbridge’s Sunrise Expansion Program in Prince George, which are expected to create thousands of jobs.

But B.C. Conservative MLA Gavin Dew said warning signs continue to flash beneath the surface.

While the province’s overall unemployment rate improved, Dew pointed to what he describes as a growing divide between regions and continued struggles among young workers.

“B.C.’s jobs divide remains stark,” Dew said. “Unemployment is far higher in business-driven communities like Kelowna at 9.3 per cent and Abbotsford-Mission at 8.3 per cent than in Victoria at five per cent.”

The Conservatives argue youth employment remains a major concern. The party says youth employment in B.C. has fallen by 51,000 workers since 2019, a 14 per cent decline that it describes as the worst in Canada. Youth labour force participation is also at its lowest level in 25 years, according to the party.

Those concerns contrast with the government’s assessment. The province notes youth employment has increased for four consecutive months, adding a total of 27,200 jobs during that period, including 3,800 jobs in July alone.

Dew said broader economic indicators also raise questions about the province’s long-term outlook. He pointed to five consecutive quarters in which more businesses have closed than opened and criticized what he called mixed government messaging on major investment projects.

The Conservatives cited recent disagreements within cabinet over the Tilbury LNG expansion as an example of uncertainty that could discourage private-sector investment.

“When cabinet ministers can’t agree on major job-creating projects, investors take notice,” Dew said.

The party also referenced recent international MBA rankings that showed only 52 per cent of graduates from UBC’s Sauder School of Business found employment within three months of graduation.