Northern BC Economy improving, but unemployment still troublesome

The economic growth on the North coast is improving, thanks mainly to a number of large projects currently underway, however unemployment still is higher than any other region of the province and has actually increased in the last year in the North Coast Nechako region.

As of Dec 2, 2006 there was construction underway on 816 million dollars worth of projects on the North Coast, with another $15.5 billion proposed for the years to follow.

While that indicator presented a picture of an area on the move, the present unemployment stats presented one of an area in quest of jobs, the official recorded unemployment rate for the North Coast for April was 8.6 per cent, up from last year at this time when it was 7.7 per cent and well above the provincial rate of 4.4 percent

The numbers make for contradictory indicators, but are all part of the scenario that has been put together by the Institute of Chartered Accountants of British Columbia who have released a report called the B. C. Check Up, Regional Edition.

The Daily News provided details from the report in Tuesday’s paper.

DOLLARS FLOWING BACK INTO THE REGION
By Leanne Ritchie
The Daily News
Tuesday, May 29, 2007
Page three

Economic growth in the North Coast Development Region continues to improve, driven by major capital projects, according to the B. C. Check Up, Regional Edition, released last week by the Chartered Accountants of British Columbia.

The B. C. Major Projects Inventory estimates, that as of Dec 2, 2006, construction had started on $816 million worth of projects on the North Coast, with another $15.5 billion proposed. This represents nearly one-quarter of proposed major project spending in B. C.

“We’re seeing a resurgence of economic activity in this area, and a larger part of that reflects the capital investment being made in infrastructure transportation, and mining facilities,” said Praveen Vohora, CA, partner with Vohora and Company. “The overall business climate is improving and people are feeling optimistic again.”

There are 34 major projects either proposed or underway in the North Coast Development Region, with more than 90 per cent in transportation and warehousing facilities, mining projects, and utilities. In 2007, the construction of more than $7.2 billion worth of capital projects is expected to start.

“Last year, the North Coast saw its first population gain in a decade, and that’s a very encouraging signal that people are taking advantage of emerging opportunities in the region,” said Vohora. “We now have to ensure our young people are properly trained and educated so they can fill the skilled jobs that will be required in the coming years.”

According to the CA report, rising numbers of business incorporations and fewer business bankruptcies marked another year of improved investor and entrepreneurial activity in the region. Between 2001 and 2006, growth in business incorporations was up 13.9 per cent, while the number of bankruptcies declined by 25 per cent.

The North Coast Development Region (NCDR) comprises the Skeena-Queen Charlotte and Kitimat-Stikine Regional Districts, and accounts for just over one percent of the provincial population.

However, a recent report by Statistics Canada, shows the region continues to lag behind other areas of the province when it comes to employment levels.

In April, the unemployment rate in British Columbia was 4.4 per cent with fewer workers in health care and social assistance as well as in accommodation and food service.

However, unemployment in the North Coast Nechako region is almost twice the provincial rate, at 8.6 per cent up from 7.7 per cent at the same time last year.