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COVID impacts

Report shows Northern B.C. economy hit not as hard as rest of province by COVID-19 restrictions

Aug 12, 2020 | 12:47 PM

PRINCE GEORGE—An update into Northern B.C.’s economy by Northern Development Initiative Trust shows that while the economy has been hit by the impacts of the pandemic, it’s been hit a little less in Northern B.C.

Why? Well according to the report by Northern Development, it’s because Northern B.C. isn’t as reliant as other regions in the province on service-sector employment, such as retail and hospitality. While the north hasn’t been hit as hard as other areas in the province, it doesn’t mean it hasn’t been impacted.

From February though June, Northern B.C. saw a 8.5 per cent drop in employment. The north east of the province was most greatly affected, followed by the North Coast-Nechako area, due to significant infrastructure projects that are under construction in those areas.

Some of those major projects included Site C, LNG and Coastal GasLink. When the pandemic was declared back in March, BC Hydro scaled down construction activities at Site C leading to a reduction of approximately 1,800 workers. The total workforce staying at the camp was reduced by roughly 50 per cent in an attempt to reduce transmission of the virus.

“For the forestry sector, our government acted quickly to list it as a non-health essential service, ensuring global supply of products dearly needed right now, such as protective masks, gowns, and other hospital supplies.”—Doug Donaldson, Minister of Forests, Lands, Natural Resource Operations and Rural Development

COVID-19 also impacted the north’s forestry sector. According to the report, year-over-year production and shipment declines continued in March and in April, with production falling by over 50 per cent year-over-year while shipments fell by 27 per cent. The report also adds that the outlook for the B.C forestry sector is mixed.

In April lumber prices were at, or below, $3,00 USD per thousand board feet and since then, have increased to above $5,00 USD per thousand board feet. While lumber prices have increased, as mills return to production lumber, supply is expected to increase which could put downward pressure on prices. Physical distancing requirements are increasing the cost of harvesting in remote areas which could also raise costs for some producers.