Regional unemployment declines after hitting near record high

Jan 9, 2026 | 11:48 AM

The regional unemployment rate has plateaued and started its decline after hitting near-record highs in the past few months.

In the monthly Labour Force Survey report, Statistics Canada said the Thompson-Okanagan economic region, which includes Vernon, had an unemployment rate of 7.4 per cent in December of 2025.

That was up from the 5.2 per cent recorded in the same month the year before, but down from the 8.6 per cent unemployed recorded in November of 2025.

The latter figure was the highest rate on record for the region since April of 2021.

StatsCan did not provide data specific for Vernon, but did have Kelowna’s figures, which showed the Central Okanagan city had an unemployment rate of 8.6 per cent this past December.

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Again, this was well above the 5.2 per cent unemployment rate in December of 2024, but down from the rate of 11 per cent recorded the month before. That figure from November was the highest unemployment rate for Kelowna since data collection began in 2011.

Though the unemployment rate fell, the employment rate didn’t change much.

StatsCan said the Thompson-Okanagan had an employment rate of 57.8 per cent in December, down from November’s rate of 58.1 per cent.

Kelowna also had an employment rate of 62.4 per cent in December, down slightly from the 62.5 per cent recorded the month before.

B.C. and Canada saw little movement in the latest Labour Force Survey.

StatsCan said British Columbia had an unemployment rate of 6.4 per cent and an employment rate of 60.8 per cent in December, both of which were unchanged on a monthly basis.

The province touted B.C.’s unemployment rate as it was the third lowest of any province in December after Quebec (5.4) and Manitoba (5.7).

“Labour Force Survey numbers for December 2025 show that over the course of the past year, B.C. added 24,100 jobs overall, including an increase of 16,800 jobs in construction. This reflects our government’s commitment to building the schools, hospitals and transportation infrastructure that British Columbians rely on,” Ravi Parmar, Minister of Forests, said on behalf of Ravi Kahlon, Minister of Jobs and Economic Growth.

“While December saw a slight loss of 3,300 jobs, B.C.’s unemployment rate remained unchanged at 6.4 per cent, the third lowest in Canada, despite the national unemployment rate rising to 6.8 per cent.

“Private-sector jobs increased in December by 5,600, the second-highest gain among provinces. Compared to this time last year, B.C. has gained 25,600 private-sector jobs.

“December also saw B.C.’s average hourly wage rise to $38.60, the highest in the country, and saw Canada’s largest increase in women’s employment, a gain of 11,100 jobs.”

As Parmar mentioned, Canada had an unemployment rate of 6.8 per cent in December, up from the rates of 6.5 per cent in November and 6.7 per cent in December of 2024.

The national employment rate held steady on a monthly basis at 60.9 per cent, though that was down slightly from the 61.0 per cent rate the previous December.

StatsCan said December did see more people working across Canada in health care and social assistance, and in “other services” such as personal and repair services. However, there were fewer people employed in professional, scientific and technical services, in accommodation and food services, and in utilities.

by Liam Verster

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