If fewer immigrants are arriving, shouldn't there be fewer people looking for work, and shouldn't it be easier to get hired? Yet in BC, jobs are still hard to find. In September 2026, the unemployment rate improved to 6.4% from the previous month, but employment fell by about 20,200. About 60% of that, or 12,800, was in the public sector.
The unemployment rate fell, yet the number of jobs went down. Part of the reason is that fewer people are taking part in the labour market. The other change not to overlook is in the public sector, which had been holding up BC's employment. As private-sector job growth slows, the public sector is also turning toward restraint.
A lower unemployment rate doesn't mean it's easier to get a job
The unemployment rate is the share of unemployed people in the "labour force," which is the people who are working plus those looking for work. People who have no job and are not looking for one are generally not included. So an improvement in the unemployment rate does not necessarily mean more hiring.
In September, employment in BC fell by 20,200, while the labour force shrank by 22,800. Because more people left the labour market than lost jobs, the number of unemployed people went down. The unemployment rate improved, but the number of jobs did not go up.
| Key BC labour indicators | September 2026 |
|---|---|
| Unemployment rate | 6.4% |
| Monthly change in employment | −20,200 |
| Of which: monthly change in public-sector employment | about −12,800 |
| Monthly change in the labour force | −22,800 |
Source: BC Stats, "Labour Force Survey Highlights," September 2026.
The public sector was driving BC's job growth
According to an analysis published in June 2025 by the Business Council of British Columbia (a BC business organization), private-sector employment has grown by an average of 1.1% a year since 2019. The long-run average for 1976–2024 is 2.1%, so that is about half the usual pace. The public sector, meanwhile, grew by 5.4% a year, about three times its long-run average.
| Sector | Average annual growth since 2019 | Average annual growth, 1976–2024 |
|---|---|---|
| Public sector | 5.4% | 1.9% |
| Private sector | 1.1% | 2.1% |
Source: Business Council of BC, analysis published June 2025.
The public sector here includes not only public administration but also public health care and social assistance, and education. It is not just about civil servants in government offices. In BC, these public services kept adding jobs, while private employment as a whole did not grow as much as before.
Professional services grew; accommodation, food and support services shrank
By industry, job growth varies widely. From January 2019 to June 2025, public administration grew 44%, public health care and social assistance 40%, and public educational services 39%. In the private sector, professional, scientific and technical services, which include law, accounting, engineering and consulting, grew 51%.
| Industry / sector | Change in employment |
|---|---|
| Private professional, scientific and technical services | +51% |
| Public administration | +44% |
| Public health care and social assistance | +40% |
| Public educational services | +39% |
| Accommodation and food services | −7% |
| Business, building and other support services | −15% |
| Agriculture | −27% |
Period: January 2019 to June 2025. Source: Business Council of BC.
The public sector was not the only one growing. But even in the private sector, some fields added many jobs while others lost them. More jobs that require professional credentials or experience do not automatically mean more opportunities for new graduates or people changing careers. Overall job growth and growth in the jobs you can actually apply for are two different things.
2026: the public sector is cutting back too
In Budget 2026, the BC government said it would reduce the public sector by 15,000 FTEs over the three-year fiscal plan. FTE stands for full-time equivalent positions, and the figure does not mean 15,000 people will be laid off. The reductions cover not only provincial ministries but also Crown corporations, school districts, universities and other post-secondary institutions, and health authorities.
Within that, the BC Public Service, made up mainly of staff in provincial ministries, aims to cut 2,500 FTEs by the end of the fiscal plan. The main tools are attrition and voluntary departures. At the same time, the government says it will protect front-line services and keep hiring for critical positions in areas such as health and education.
What matters for job seekers is that workforce reductions don't happen only through layoffs. If departing staff are not replaced, headcount can fall without anyone being laid off. But for people looking for work from the outside, that means fewer chances to be hired. Even cuts that avoid layoffs narrow the way in.
External hiring now needs approval from senior government officials
On August 20, 2026, the BC government changed its hiring direction. The earlier requirement to first fill positions through lateral moves of existing staff was removed. Instead, hiring from outside now requires approval from the Hiring Review Board, made up of the head of the BC Public Service and other senior officials.
Approval is limited to cases where a position is needed for public safety, legal obligations or maintaining essential services, and the work cannot be covered by existing staff. A vacancy does not automatically lead to external hiring. The need to bring someone new in has to be justified under strict conditions.
For example, if someone in a ministry retires and the remaining staff can cover the work, hiring a replacement from outside may not meet the conditions. An empty seat inside an organization is not the same as a hiring opportunity for outside job seekers. For anyone hoping to join or move into provincial government, that is a big difference.
Can the private sector pick up the slack?
There is another number that shows how weak private employment has been. In its 2025 analysis, the Business Council of BC calculated that if private employment had stayed on its pre-pandemic growth trend, there would be about 223,000 more jobs than there actually are. Public-sector employment, on the other hand, was about 134,000 above its earlier trend.
| Sector | Difference between actual employment and the extended pre-pandemic trend |
|---|---|
| Private sector | −223,000 |
| Public sector | +134,000 |
Source: Business Council of BC, analysis published June 2025. The figures are the difference from an assumed extension of past trends, not the number of jobs actually lost or job openings.
This comparison shows that private employment has fallen short of its usual growth pace, while the public sector has grown beyond it. However, past growth rates, a single month's job decline and the province's hiring restrictions cover different periods and scopes, so they alone cannot pin down the cause or size of today's tough job market.
The question, then, is whether private businesses can create new jobs while the public sector holds back on hiring. Some fields, such as professional services, have added many jobs, but not every job seeker can move into them. What is needed is a wider range of jobs open to people with different experience and skills.
Fewer workers alone won't create more jobs
When it comes to immigration and jobs, newcomers matter not only as workers but also as consumers. If population growth slows, it can affect demand for housing, food, restaurants and everyday services. Even if fewer people are looking for work, businesses will not necessarily keep hiring as many people as before.
In BC, private-sector job growth was already slowing before the recent shift in population trends. During that time, the public sector added many jobs, but its hiring now comes with strict conditions. Immigration numbers and the unemployment rate alone don't show this change.
Until now, BC had a growing public sector as a place to find work. As that hiring is held back, what job seekers need is new jobs created somewhere else. Fewer workers alone will not create those jobs. If not the public sector, who will create the next jobs? That is the big question for understanding BC's tough job market.
Explore the latest BC employment data
How have unemployment and public- and private-sector employment changed since then? Follow the monthly trends with interactive charts on BC Employment.