Report shows early signs of economic recovery

The Central Okanagan Economic Indicators for quarter one of 2021 show signs of economic recovery and rising business confidence in many sectors.

The report provides a snapshot of the region’s economy from January to March 2021.

The report says the number of business licenses issued increased 4.7 per cent over the past year and many businesses have shown strong hiring growth with an increase of 14.5 per cent in job postings compared to pre-pandemic levels in Q1 2020.

“At the same time, many sectors of the economy continue to experience significant impact and long term recovery challenges with airport passenger traffic down 80.4 per cent and job postings in the Arts, Entertainment and Recreation sector down 91 per cent compared to Q1 2021” Krista Mallory, Manager COEDC, said.

While the long term economic impacts of the COVID-19 pandemic remain unclear, the Central Okanagan region saw a 0.64 per cent growth in the number of people in the labour force in Q1 2021 with 1.05 per cent more people actively employed. The Q1 2021 unemployment rate (5.37 per cent) has returned to levels relatively consistent with Q1 2020 (5.77 per cent).

Viewed as a leading indicator of activity in the construction and development industry by Statistics Canada, the 251 per cent increase in building permits issued in Q1 2021 in the region reflect rising confidence in the sector. Housing starts have increased 5.75 per cent in the first quarter of 2021.

“The Okanagan region is expected to add more people in the coming two decades than it has in the past two; growth will be driven by a growing and diversifying economy set within one of the most amenity rich settings in the province,” demographer Andrew Ramlo said at the April 2021 COEDC Advisory Council meeting,

About the Economic Indicator Report:

In an effort to keep the public and business community informed on the economy of the region, the COEDC – the Region’s primary business resource – collates and distributes statistics of economic indicators for the Central Okanagan. The Q1 2021 Economic Indicators report provides a snapshot of the region’s economy and January to March 2021.

The commission sources the above third party statistical data from BC Stats, Statistics Canada, CMHC, Vicinity Jobs, and local governments in the Central Okanagan. Caution should be used in the interpretation of month-to-month statistics, in particular the Labour Force Survey, a monthly sample survey which provides unemployment rates of the Canadian labour market.

The Economic Indicator’s are publically available on the Resources page in the COEDC website.