Since their recent lows, both the Vancouver housing market and global equity markets have had a surprising rise. This despite fewer and fewer people actually drawing a paycheque. The unemployment rate in the US recently surpassed 10%, and is much higher if you count the people that have given up looking for work or run out of unemployment benefits.
In Canada it’s a similar story with a bit of a lag. In October alone Canada ‘unexpectedly’ lost 43,200 jobs and today saw news of EA cutting 1,500 jobs with a ‘significant’ number of them from their Burnaby campus. Other cuts were announced by Kodak which is shifting development work from Victoria and Burnaby to Israel. The latest round of cuts leaves them with roughly 500 employees in BC, down from 1,265 in July 2008.
According to CIBC the quality of jobs left not just in BC, but all across Canada has taken a nosedive in the last 6 months.
There was a time when Vancouver fancied itself a bit of a high-tech economy, with a number of video game studios providing good paying jobs locally. The recent round of cuts takes some of the shine off that image. Are there growth industries left in Vancouver that will offer decent incomes to support our high cost of housing?