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B.C. job market paradox: Hiring up, entry-level prospects down

The province is leading Canada in full-time job creation, but signs point to growing struggles for new and returning workers
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Dress for Success Vancouver executive director Amanda Sayfy said the number of appointments being booked by clients has declined, reducing wait times

Statistics Canada data show B.C. is gaining jobs and doing so at a faster rate than other provinces.

Indications, however, point to some job seekers having more trouble landing jobs, particularly when the work is an entry-level position.

B.C. compared with April. So far this year, B.C. has gained 67,000 full-time jobs, which is the highest increase among provinces, according to the country's statistics gatherer.

One point of concern, however, is that : to 6.4 per cent in May, and 6.1 per cent in March. Back in January and February, B.C.'s unemployment rate was only six per cent.

The current rate is still below , but Canada as a whole is similarly struggling with a rising unemployment rate. Its unemployment rate was 6.6 per cent in January and has incrementally edged upward through the year.

B.C.’s simultaneous increase in jobs and the rate of unemployment indicates more people are entering the labour force seeking work.

Recruiters say job seekers are finding it particularly tough when looking for entry-level positions. 

"We have definitely seen a decrease in temporary staffing needs, less on the junior roles," Natasha Jeshani, CEO at recruitment firm Career Contacts Ltd., told BIV.

"But we have seen a significant increase in executive search for higher-level strategic roles."

Other evidence that there are fewer people getting hired in entry-level positions comes from Dress for Success Vancouver.

That organization's executive director, Amanda Sayfy, told BIV that her organization helps women and gender diverse people by providing free clothing that are appropriate for office environments. The individuals tend to be those who are re-entering the workforce or otherwise need help acquiring professional-looking clothing for workplaces.

Its website touts its role of "empowering unemployed and underemployed women to achieve financial independence and personal success."

The result of that is that many of the jobs that its clients seek are entry-level positions because people hired for executive roles usually have years of experience in office environments.

"Demand for our dressing services appointments is a good indicator of how many people are being successful at securing job interviews or securing new employment," Sayfy said. 

Customarily, clients must wait between two and four weeks for a clothing appointment, where Sayfy or other Dress for Success Vancouver staff help them put together a wardrobe, she said.

In the past month or so, these appointments could be booked for only one week in advance. 

Job seekers must provide evidence of an upcoming interview or a new job, Sayfy said, adding that Dress for Success Vancouver tends to help between 40 and 50 clients each week. 

One possible rationale for rising unemployment could be a slowing economy newly grappling with some tariffs that U.S. President Donald Trump has levied, and with retaliatory measures by Prime Minister Mark Carney.

That can crimp corporate profit margins.

Vancouver-based Aritzia Inc. (TSX:ATZ) CFO Todd Ingledew told investors in May to expect "just over 400 basis points of gross-margin pressure in fiscal 2026" due to tariffs. The company makes much of its clothing in Asia and exports it to the U.S.  

Vancouver-based Lululemon Athletica Inc. (Nasdaq:LULU) CFO Meghan Frank earlier this month said she expected her company's gross margin to decline by about 110 basis points this year, up from only 60 basis points previously forecast. It also makes much of its clothing in Asia and exports it to the U.S.

"The additional 50 basis points of deleverage [is] to be driven predominantly by increased tariffs," she said on her company's earnings call with analysts. 

Crimped profit margins can lead to layoffs, or reduced hiring. Lululemon this week . 

Some companies are hiring fewer workers because they see efficiencies driven by artificial intelligence. 

Shopify Inc. (TSX:SHOP) CEO Tobi Lütke that said, "before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI."

BIV on Wednesday asked Best Buy Canada Ltd. president Mat Povse if he were employing a similar strategy of using AI to forestall future hiring. 

He said that instead of using AI to do the same amount of work with fewer employees, he is using the technology to get more work done.

"What AI offers us is an ability to actually keep the existing team we have, and do more with them," Povse told BIV.

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