As the provincial economy continues to recover following the height of the pandemic, many B.C. businesses were left stung by the pinch of a tight labour market throughout 2023.
Whether it was a business owner, ferry passenger, tourist or a resident shopping for a can of Coke or a bag of sugar, there is a high chance they were impacted directly by labour disruptions due to organized strikes or labour shortages over the past year.
“2023 was a year of many different factors that impacted the labour market,” said Bridgitte Anderson, president and CEO of the Greater Â鶹´«Ã½Ó³»Board of Trade (GVBOT).
“As the first full year coming out of the pandemic, we saw a lot of [job] demand come back but at the same time, many of those people who worked in those industries had moved on to other jobs, so we still see shortages.”
There are an estimated 132,685 unfilled positions in the province, according to Statistics Canada. BC Ferries, for instance, attributed 40 per cent of all cancelled sailings in 2023 to crew shortages.
Industries such as tourism, hospitality and skilled trades were especially hit hard – some hotels and restaurants only booked 80 per cent of their rooms or maintained reduced hours due to lack of staff, said Krista Bax, CEO of go2 Tourism HR Society, the human resources association for B.C.’s tourism and hospitality industry, in a July interview.
Pressure was also felt across other industries as Naz Kullar, chairwoman of Chartered Professionals in Human Resources BC and Yukon, told BIV in August that acquiring talent was “extremely challenging” in 2023.
“We saw such a big rise in inflation and rising costs that made it very difficult for expensive jurisdictions like Â鶹´«Ã½Ó³»to hang on to some of those workers or to attract new workers because the cost of living is so high here,” said Anderson.
But she said employment in some industries is bouncing back better than pre-pandemic levels “so it really is quite a mixed picture.”
The record number of newcomers to B.C. has helped address some of the labour challenges, although Alberta’s efforts to attract talent from B.C. is concerning, she added.
From July 1, 2022, to June 30, 2023, B.C. saw a net loss of 8,228 individuals in population due to interprovincial migration with Alberta being the top destination, but it was outpaced by the arrival of a record 175,024 international migrants during the same period.
A year of unusual labour unrest
Inflation and a tight labour market fired up a year of unusual labour unrest in 2023, according to labour experts.
There were 14 work stoppages in the first three quarters of 2023, according to Economic and Social Development Canada, and the impact was felt by businesses in B.C. and across Canada, especially the 13-day long port strike in summer that was estimated to disrupt $10.7 billion worth of trade value.
Workers at Rogers Sugar Inc., Rogers Communications Inc. (TSX:RCI.B), Coca-Cola Canada Bottling Ltd., Simon Fraser University, and several Richmond airport hotels were among those that hit picket lines last year. Meanwhile, thousands of B.C. film workers’ jobs were thrown for a loop by striking Hollywood writers and actors.
“2023 was a time of unusual labour unrest here in British Columbia in terms of the last five or 10 years,” said Mark Thompson, a professor emeritus at the University of British Columbia’s Sauder School of Business.
“We have a period of declining inflation but low unemployment, relatively speaking. And inflation is very upsetting to industrial relations. It makes it hard for the parties to reach agreement because they don’t really know what the terms of reference are.”
He said the tight labour market and broad economic conditions favour labour in a way not seen for years, giving workers more bargaining power.
“If companies want to keep the employees, they have to pay them more. … That’s pressure on employers, for sure. [So] they’re raising prices on all kinds of things.”
Thompson said even very important strikes have a short-term impact on economic performance and after a quarter or two, things should be back to what they were.
Labour policies in 2023 aim to bring changes
The B.C. government introduced a number of policies to tackle labour challenges, but the effects have yet to manifest.
This includes launching the Future Ready initiative in May to provide support and funding to those receiving training for in-demand jobs, and increasing the minimum wage from $15.65 to $16.75 per hour in June.
The B.C. Pay Transparency Act went into effect in November, requiring companies to reveal pay ranges in their job postings and prohibiting them from asking applicants to reveal their past salary. And the province later proposed new employee standards for gig workers working for ride-hailing and food delivery apps including a minimum wage, tip protection and compensation coverage.
The International Credentials Recognition Act received Royal Assent in November. The act aims to reduce barriers for internationally trained professionals seeking jobs in B.C. and will come into force next summer.
“We have taken a lot of initiatives, a lot of support is there, but there’s a lot more needs to be done because I agree people are still suffering, people are still struggling. They think they’re working harder and longer, but they’re still falling behind,” said B.C Labour Minister Harry Bains.
“The B.C. government understands that and that’s why we are taking all those steps to help the people of British Columbia.”
Bains said the record number of newcomers to B.C. in 2022 and 2023 – the most in the past 60 years, shows people’s confidence in the B.C. economy and job market.
For business leaders like Anderson, they are waiting to see the impact these policy changes are bringing to B.C. businesses and the labour market in 2024.
“I think the picture will become more clear in 2024 because some of the work that has been done on policy changes in 2023, but I think we’re still going to see a bit of a bumpy road ahead.”
