The province added 25,000 jobs in May but has still lost 29,600 year over year as business confidence declines among small businesses
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Even as the province touts the World Cup as a boon to the economy, the overall climate for business in B.C. is worsening, industry groups say, with confidence among small business owners falling once again in May and job growth failing to keep up with the rest of the country.
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According to the most recent Labour Force survey from Statistics Canada, B.C. added 25,000 net new jobs last month, with some of the biggest gains coming in transportation and warehousing (10,200 new jobs), accommodation and food services (5,700 new jobs) and miscellaneous services (6,500 new jobs).
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At the same time, many sectors saw continued retraction in their employment totals, including building and business (a loss of 4,600 jobs) and wholesale and retail trade (a loss of 2,200 jobs).
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The positive news from May hides the large losses that much of B.C.’s economy has faced over the past year, with the province losing a net total of 29,600 jobs.
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Among the hardest-hit sectors have been wholesale, retail, real estate, and natural resources.
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Ryan Mitton, B.C. legislative director for the Canadian Federation of Independent Business, said that between September 2024 and August 2025, B.C. saw four straight quarters where more businesses closed than opened.
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In total, B.C. had 2,906 more businesses shut their doors than set up shop over those four quarters. While that is much better than Ontario, which saw a net loss of 7,725 businesses over that time, it is much worse than Alberta, which saw a net loss of only 842 businesses.
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Mitton also said that a survey conducted by CFIB last month found small business confidence dropped 5.7 points in May amid continued fallout from the continually increasing cost of doing business, global uncertainty given the wars in Ukraine and the Middle East, as well as the province’s decision to expand the provincial sales tax to services such as bookkeeping and security.
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“We’ve now hit this point where we’re seeing that businesses are closing faster than they’re opening, and what that says is all these cost factors, whether it’s the small business tax rate, or the expansion of the PST, or the employer health tax, are catching up to entrepreneurs, and they’re simply telling us that it’s not worth doing business anymore,” he said.
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“When I go and talk to employers and small business owners, it’s almost like the story of the straw that’s breaking the camel’s back over and over and over again. It’s these little deaths by 1,000 cuts.”
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Jobs Minister Ravi Kahlon said he understands the challenges faced by small businesses, but touted the World Cup as an opportunity for businesses to make some gains.
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He also said that he hopes private-sector projects like LNG Canada Phase 2, currently awaiting a final investment decision, will help raise the business climate in B.C.
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“I think most business leaders would agree and understand that attracting this type of attention to British Columbia, to Vancouver, to Canada helps our business community,” said Kahlon of the World Cup.
