As Labour Force Survey estimates for employment increased in June, B.C.’s payroll count moved in the opposite direction, pointing to uneven patterns in the labour market.

Payroll counts, which are based on administrative level data, fell 0.1 per cent, or 1,633 positions, after increasing 0.2 per cent in May. Employment remained tepid at 0.6 per cent, or 14,657 positions, from a year earlier, according to Statistics Canada’s Survey of Employment, Payroll and Hours, consistent with weak economic growth and business confidence.

Excluding unclassified businesses, which contributed the bulk of the decline, payroll employment was virtually unchanged from May, dropping by 280 positions.

The goods-producing sector led declines with a loss of 928 payroll positions and fell 0.6 per cent year-over-year. Construction accounted for most of the monthly decline, shedding 794 positions, consistent with weakness in the housing market.

On a year-over-year basis, weakness was concentrated in mining and forestry where payrolls were down by 1,744 and 1,184 positions, respectively. Monthly gains of 394 positions in utilities and 287 in manufacturing provided only a partial offset.

Service-producing payroll employment was little changed in June, increasing by 649 positions, but remained 1.3 per cent, or 26,401 positions, above year-earlier levels. Growth was narrowly concentrated in public administration, health care and social assistance, which together added 3,508 positions.

Those gains were offset by declines in administrative and support services, down 1,320 positions; educational services, down 950; and trade, down 836.

There was no discernible World Cup boost. Payroll employment in accommodation and food services fell by 314 positions in June, although it was 0.5 per cent, or 1,088 positions, above year-earlier levels.

More broadly, there were no common directions in June payrolls with gains in some sectors and losses in others. Trade uncertainty and tariffs, a weak housing market, a resilient consumer and gains in public-sector employment have contributed to low net hiring.

On the housing front, housing starts declined in July. Urban housing starts in B.C. fell 14.9 per cent to a seasonally adjusted annualized rate of 28,483 units, following a 4.9 per cent decline in the previous month.

The July decrease was driven by a sharp 17.1 per cent drop in multi-family starts, while single-family starts increased by 4.7 per cent. Year-over-year, starts fell by nearly half, and year-to-date starts declined 10 per cent pointing to weaker construction momentum.

Year-to-date multi-family and single-family starts declined by 10.3 per cent and 7.9 per cent, respectively.

Within the multi-family segment, the year-to-date decline was driven by a 14.4 per cent decrease in apartment starts, which account for most new housing construction in the province. In contrast, semi-detached and row housing starts increased by 33.5 per cent and 2.5 per cent, respectively.

Despite weaker starts, more than 84,000 units remained under construction across the province, although fewer starts will reduce these counts. The majority of units under construction are in Vancouver and concentrated in apartment structures.

Housing starts are expected to remain relatively low given a soft resale market, pre-sales and elevated inventory.

Housing start trends have varied considerably across B.C.’s major urban markets year to date. Starts declined in Abbotsford-Mission, down 47.1 per cent; Kelowna, down 37.4 per cent; Vancouver, down 9.7 per cent; and Victoria, down 30.2 per cent.

In contrast, starts increased by 46.6 per cent in Chilliwack and more than doubled in Nanaimo and Kamloops. Much of the new construction across these markets remains concentrated in purpose-built rental housing.

Bryan Yu is chief economist at Central 1.