Private Sector Job Losses Hammer B.C.’s Economy

Commentary
By Tegan Hill and Milagros Palacios

According to Statistics Canada’s most recent labour force survey, British Columbia has lost 43,700 jobs since January—with job losses concentrated in the private sector.

Overall, since January, B.C. has lost 58,600 private-sector jobs, paired with a marginal decline in public sector employees (-300),and some gains in self-employed (15,100). In April, the province lost 4,300 jobs in total. This reflects a loss of 9,000 private-sector jobs compared to the prior month and losses in the government sector (-5,600) while there were gains in self-employed (10,300). This is the third consecutive month of sizable declines in B.C’s private-sector jobs. The unemployment rate has risen from 6.1 per cent in January to 6.8 per cent in April.

The decline in private-sector jobs is concerning and reflects a broader issue. A recent study found that B.C.’s government sector grew by 54.0 per cent from 2015/16 to 2025/26, while private-sector job growth (including self-employed) was 16.8 per cent. And several other studies have highlighted growth in the government sector—while the private sector continues to struggle. Though these latest numbers indicate the massive expansion in government may finally be slowing (only time will tell) and there is some positive growth in self-employment, the massive decline in the private sector overshadows any progress.

And the situation is simply unsustainable. After all, it’s the individuals and businesses in the private sector (and those self-employed) that ultimately pay for government jobs. The larger government’s share of employment, the greater the burden on taxpayers to support government workers, either through taxation or borrowing. That means less money to save and invest, fewer incentives to build or expand businesses, and slower job creation outside of government.

British Columbians are feeling the impact. The province is facing sluggish business investment, stagnant living standards, and the provincial budget deficit is projected to reach a historic $13.3 billion in 2026/27. This fiscal year, total projected provincial debt is set to skyrocket to $183.4 billion costing $1,100 per British Columbian just to finance this debt.

The government has also hiked taxes to help pay for the growing government sector. InBudget 2026, the Eby government announced an increase to the lowest personal income tax rate, an expansion of the provincial sales tax (PST) to a host of professional services (e.g. accounting, architecture), higher speculation and vacancy taxes on real estate, and increased the provincial portion of property taxes for certain homes.

B.C. is losing private-sector jobs at an alarming rate. With a large government sector, this is simply unsustainable. And it will continue to cost British Columbians through higher taxes and lower living standards.

Tegan Hill is Director, Alberta Policy, Fraser Institute. Milagros Palacios.

Director, Addington Centre for Measurement, Fraser Institute.