2021 State of the North Economic Report

2020 STATE OF THE NORTH ECONOMIC REPORT 2021 STATE OF THE NORTH ECONOMIC REPORT

The 2021 State of the North Report takes an in-depth look into economic indicator information across Northern B.C., including summaries of core economic sectors such as forestry, agriculture, mining and energy and regional profiles for the Northwest, Northeast, North Central and Cariboo-Chilcotin/Lillooet areas.

Independently researched by MNP, the 2021 report outlines how the second year of the COVID-19 pandemic, along with two severe weather events, impacted the economy of our region. Northern B.C.’s economy was less affected overall than other parts of the province and depending on the industry, the recovery is varied.

The continuation of major construction projects continues to support economic recovery in the Northeast and Northwest.

View the entire report online at northerndevelopment.bc.ca/state-of-the-north

Highlights of the 2021 report include:

• Unemployment rates in Northern B.C. declined in the second quarter of 2021 as employment levels grew.

However, both employment levels and the labour force declined with employment declining faster leading to an increased unemployment rate in the third quarter. By October 2021, the overall unemployment rate in Northern

B.C. remained above 2019 levels

• Lumber prices continued to rise in the first half of 2021, as demand remained strong from the U.S.A. homebuilding and renovation sector while supply remained tight. Throughout the fall of 2021, lumber costs moderately increased, as buyers returned to take advantage of the lower prices. In November 2021, prices sat approximately 50 to 60 per cent higher than pre-pandemic historical levels

• Tourism did improve in Northern B.C. in 2021 and ferry traffic along with passenger volumes at airports increased significantly. Despite these improvements, a bad wildfire season in the summer combined with winter travel restrictions limited the number of tourists in the region

• Between 2016 and 2021, population levels grew modestly in the region with the highest increase being the North Central region at 2.1 per cent due to growth in Prince George. However, population growth in

Northern B.C. is well below other regions of the province with the highest increase found in Vancouver

Island/Coast region at 8.2 per cent