A vibrant economy is part of the vision for a sustainable
Fraser Basin region. Economic well-being at a regional scale can be described
as the performance of the economy within BC or the Fraser Basin, and can
be measured through indicators such as economic growth, unemployment rates,
economic productivity and economic diversity. A sustainable economy can
contribute to an increased standard of living and increased prosperity,
and is composed of good corporate citizens that are socially and environmentally
responsible (see Business).
A sustainable economy uses renewable resources and minimizes adverse impacts
on the environment by reducing pollution and waste, and efficiently using
energy, materials and labour. A low unemployment rate is important to the
economic stability of a community. Likewise, high employment rates generate
lower employment insurance claims and more income tax, providing public
funds in support of healthcare, education, transportation and other public
services. Increasing economic diversity is associated with economic stability,
resilience, human well-being and sustainability.
| Productivity
Growth |
|
POOR
-Below the national average over the past decade and minimal growth
since 2002. |
| Unemployment |
|
GETTING
BETTER -Unemployment rates are at the lowest levels in over
20 years and dropped below the national averagein 2004/05. |
| Economic
Diversity |
|
FAIR/MIXED
RESULTS - Best in the Thompson, Fraser Valley and GVSS regions
and worst in the Upper Fraser and Cariboo-Chilcotin regions. |
Due to limited availability of current data, many of
the indicators have been analyzed at the provincial level. Provincial data
is more current (2004 or 2005) than data otherwise available specifically
for the Fraser Basin (2001).
Gross Domestic Product Growth Per Capita (1996-2005)
1
Economic growth refers to the expansion of the total production of goods
and services over time. The growth in real GDP is used as an indicator of
the general well-being of the economy. However, many activities that contribute
to GDP growth might negatively influence sustainability, such as expenditures
on human tragedies, including car accidents and environmental catastrophies
such as oil spills. BC has had strong economic growth over the last few
years. Real GDP per capita growth in BC has outpaced the national average
since 2002. In 2005, BC had the third highest growth rate among the provinces,
with a GDP per capita growth of 2.2%.
Productivity Growth (1996-2005) 1
Productivity growth is a key contributor to economic growth
and income growth. Economic growth is a result of increased labor use, increased
capital or an improvement in the efficiency with which labor and capital
are utilized. A common measure of this efficiency or productivity is GDP
per hour worked. Economic growth achieved through increased productivity
puts less pressure on finite natural resources or environmental services.
Although BC has recently had strong GDP growth, real GDP per hour worked
in BC was $32.2, below the national average of $34.7. Productivity in BC
has consistently been at levels below the national average from 1996 to
2005.
Employment and Unemployment (1996-2005) 2
The labor force includes all individuals 15 and older who
are employed in full-time and part-time positions or are actively looking
for work. The unemployment rate (% of labour force without work) in BC in
2005 was 5.9%, while the employment rate (% of population employed) was
61.5%. Although province-wide Labour Force data are presented in this report,
1996 and 2001 Census data were examined to compare BC and Fraser Basin data.
It was found that Fraser Basin unemployment rates were similar, and slightly
lower than the BC rate in both the 1996 and 2001 Census years (0.4% and
0.5% lower respectively).
Economic Diversity (2001)
3
Economic diversity is an important indicator of the stability
and resiliency of regional economies. Dependency on a single industry makes
that economy extremely vulnerable to economic downturn. BC Statistics developed
an Economic Diversity Index that rated 20 smaller BC communities in 2001.
The higher the number (0-100), the more diverse a community's economy is
presumed to be. Communities in the Upper Fraser and Cariboo-Chilcotin regions
were relatively less diverse than in the southern regions of the Basin.
In particular, Vanderhoof (index rating of 56) and Quesnel (57) had the
lowest levels of economic diversity. The low diversity scores in the Upper
Fraser and Cariboo-Chilcotin regions are in part due to heavy reliance on
the forestry sector in these regions (See
Forests and Forestry).
Map of Economic Diversity (2001)
3
What is being done?
Community Futures Development
Corporation of British Columbia coordinates and facilitates a number of
community economic development initiatives in the Fraser Basin and throughout
BC. These initiatives include entrepreneurship, self-employment and community
economic development programs.
Western Economic Diversification
Canada is providing $25 million in funding to create new employment opportunities,
support economic infrastructure and promote entrepreneurship in BC. This
funding will be matched by the BC government.
The BC Competition Council
conducts a comprehensive review of BC's competitiveness in every sector,
pinpoints barriers to growth and identifies solutions to overcome them.
What else can be done?
Buy from local businesses
and from those that are based in BC.
The BC Progress Board
suggests that increasing productivity through public and private capital
investments, new funding for and focus on research, training and academics
need to be priorities if we want to increase our economic well-being. Further,
public policy must include favourable tax, immigration and regulatory policies
.4
Support government programs
in school districts and post-secondary institutions that contribute to a
well-educated, highly qualified work force.
Support the development
of partnerships between communities, government and business to diversify
local and regional economies.
Support
initiatives such as job sharing, cooperatives, peer lending groups, and
entrepreneurship training.
|
Reconnecting
new Canadians with their careers
Over 35,000 immigrants-including many highly skilled people-come to
BC each year. It is key to economic sustainability that they effectively
integrate into the workforce and secure positions that match their
qualifications. BC Skills Connect, funded by the Ministry of Economic
Development and offered through local non-profit service agencies,
helps tradespeople, professionals and other skilled immigrants ready
themselves for the BC workforce through career assessment, skills
enhancement and workplace orientation, including internships or mentorships.
The initial focus is on those in the construction, transportation,
energy and tourism and hospitality industries.
|
|
|
REFERENCES
1. BC Stats, Statistics Canada. (2006).
2. BC Stats, Statistics Canada Labour Force Survey. (2006).
3. BC Stats, British Columbia's Heartland at the Dawn of
the 21st Century: www.bcstats.gov.bc.ca/pubs/econ_dep.asp.
(2004).
4. FBC Progress Board, Fifth Annual BC Progress Board Benchmarking
Report: www.bcprogressboard.com/bmark_reports.php?p=benchmarks.php.
(2006).
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