Even as the province promotes the World Cup as an economic boost, the overall business climate in British Columbia is deteriorating, according to industry groups. Confidence among small business owners fell again in May, and job growth lagged behind the rest of the country.
May Job Gains Mask Deeper Losses
Statistics Canada's Labour Force Survey shows B.C. added 25,000 net new jobs in May. The largest gains were in transportation and warehousing (10,200 jobs), accommodation and food services (5,700 jobs), and miscellaneous services (6,500 jobs). However, several sectors continued to shrink, including building and business (loss of 4,600 jobs) and wholesale and retail trade (loss of 2,200 jobs).
Despite the monthly increase, B.C. has lost a net total of 29,600 jobs over the past year. The hardest-hit sectors include wholesale, retail, real estate, and natural resources.
Business Closures Outpace Openings
Ryan Mitton, B.C. legislative director for the Canadian Federation of Independent Business (CFIB), reported that from September 2024 to August 2025, B.C. experienced four consecutive quarters where more businesses closed than opened. In total, 2,906 more businesses shut down than started up during that period. While this is better than Ontario's net loss of 7,725 businesses, it is worse than Alberta's net loss of 842.
A CFIB survey in May found small business confidence dropped 5.7 points. Factors include rising operating costs, global uncertainty from wars in Ukraine and the Middle East, and the province's expansion of the provincial sales tax to services like bookkeeping and security.
“We’ve now hit this point where businesses are closing faster than they’re opening. These cost factors are catching up to entrepreneurs, and they’re telling us it’s not worth doing business anymore,” Mitton said. He described it as “little deaths by 1,000 cuts.”
Government Response
Jobs Minister Ravi Kahlon acknowledged the challenges facing small businesses but highlighted the World Cup as an opportunity for economic gains. He also expressed hope that private-sector projects like LNG Canada Phase 2, pending a final investment decision, will improve the business climate.
“I think most business leaders would agree that attracting this type of attention to British Columbia helps our business community,” Kahlon said about the World Cup.
