SKEENA NEWS — As British Columbians ring in the new year, the latest federal labor data reveals a cooling national economy and a growing rift between large corporations and the small businesses that form the backbone of the Northwest.
Statistics Canada’s final Labour Force Survey of 2025 shows that while Canada added 8,200 jobs in December, the national unemployment rate still climbed by 0.3 percentage points to 6.8%. This increase was driven by a surge in the number of people actively looking for work, outpacing the economy’s ability to create new positions.
B.C. Resilience vs. National Volatility
British Columbia remains a relative point of stability. While the national rate rose, B.C.’s unemployment rate held steady at 6.4% in December. However, this stability masks a significant shift in where people are finding work:
- Growth Sectors: Employment saw strong gains in Health Care and Social Assistance, a trend consistent with provincial efforts to bolster the healthcare system.
- Declining Sectors: Job losses were concentrated in Professional, Scientific, and Technical Services, signaling a slowdown in the high-tech and consulting sectors.
The Small Business Crisis: A ‘Fragile’ Recovery
Behind the topline numbers lies a troubling trend for the Skeena and Bulkley Valleys. Data from BMO and Merchant Growth highlights a widening gap between “Big Business” and local mom-and-pop shops.
| Business Size | 2025 Employment Trend | Impact |
| Large Firms | +292,000 Jobs | Driving the “mediocre” national gains. |
| Small Businesses | -300,000 Jobs | Experiencing a “hiring freeze” and wage pressure. |
Small businesses employ nearly 90% of Canada’s private-sector workforce, yet they are currently shedding jobs at an alarming rate. According to a recent survey by Merchant Growth, 77% of small businesses chose not to hire seasonal staff over the holidays. The reasons cited reflect the local struggle:
- 28% could not afford additional wages.
- 24% struggled to find qualified workers.
- 15% were uncertain about future sales.
Regional Outlook: The Skeena Context
For residents of Terrace, Prince Rupert, and Smithers, the 6.8% national unemployment rate serves as a cautionary signal. While B.C. has avoided a jump in unemployment so far, local business owners are increasingly “working longer hours themselves” and “delaying growth plans” to stay afloat amidst rising costs and stabilized but cautious consumer demand.
“For many small biz owners, recent job gains feel fragile and temporary,” noted a release from Merchant Growth. As we enter early 2026, the local economy appears to be in a holding pattern, waiting for costs to ease and for hiring momentum to return to the private sector.
Skeena News Economic Tip: With the provincial budget arriving in six weeks, local business associations are calling for PST exemptions and other tax incentives to help SMEs reinvest in their workforce and bridge the gap left by large-sector consolidation.
