Jobs aren't the issue for Kamloops, Okanagan workforce — affordable housing is
As the Thompson-Okanagan regions recover from the COVID-induced economic slowdown, there’s a disconnect between the shortage of workers and increased numbers of unemployed.
The taxation that contributes to the high cost of housing is one key concern for workers coming to or staying in the region, according to Karen Christiansen, the regional spokesperson for the Chartered Professional Accountants of B.C.
“There is a disconnect between levels of government in what they want to tax and are prepared to tax and how it helps our community continue to thrive and grow,” she told iNFOnews.ca “They’re almost working at cross purposes.”
The region’s unemployment rate in September was 5.4%. That’s a marked improvement from a year ago when it was 9% but still far behind the 4.5% in September 2019.
This is at a time when there are desperate shortages of workers, not only in the hospitality industries that have been hardest hit by COVID, but in construction and many other fields.
READ MORE: Some Kamloops, Okanagan businesses temporarily closing, adjusting hours due to staff shortages
It’s the participation rate – the number of people employed or searching for work – that’s troubling. It has dropped to 63.5 per cent for September according to a report issued recently by the Chartered Professional Accountants of B.C. That’s down from 64.2% last year and 66% from 2019.
There are many likely reasons for there being fewer people looking for work but no hard data, Christiansen said.
In some cases, it may be that people are taking the time to retrain.
Daycare has been an issue during the pandemic where childcare centers may have to send children home to self-isolate, forcing parents to stay home for two weeks. Some seem to have just dropped out of the workforce.
And, it’s not only children that need care. People may be staying home to look after elderly parents, Christiansen said.
“Maybe people have decided it’s time for a lifestyle change,” she said. “Maybe the idea of being at home resonates with people.”
It’s too early to tell if these changes are permanent or part of the fact that COVID is still prevalent in the community, she said.
Most of the job growth in the last year – 13,000 versus a loss of 200 part-time jobs – has been in full-time work, mostly construction, even though that sector is facing worker shortages.
READ MORE: Full-time work leading the way for new hires in Thompson-Okanagan
This is leaving the part-time and seasonal hospitality sectors really scrambling to find people willing to work those hours, often for low wages.
“There are barriers to people moving into those industries,” Christiansen said. “Affordable housing is a big issue. Finding ways to bridge that gap would go a long way to encourage people to live here and work here.”
She pointed to taxation from all levels of government as huge factors preventing construction of more affordable housing that low wage and part-time workers can afford.
For example, the City of Kelowna collects $44,800 in fees for each house built in the South Mission area of the city and is looking at adding about $10,000 to that cost.
READ MORE: No easy answers to make new B.C., Kelowna homes more affordable: CHBA
Similar fees are charged per housing unit in other areas of the city so buyers have to pay as much in city fees for a micro-suite as a million-dollar home.
Christiansen suggested fees, instead, be charged on square footage.
Senior governments also collect taxes as new homes are built.
“I understand municipal governments need their tax revenues,” Christiansen said. “I understand federal and provincial governments need to collect tax revenue. That’s not the point. The point is, who’s carrying an unnecessary burden and is that affecting the workforce? I would say it is. Our ability to retain and attract talent is being compromised because the cost of housing is so high in our area."
Until the three levels of government get together to tackle the affordability issue, industries are going to continue to struggle to attract and retain workers, she said.
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