Statistics Canada confirms British Columbia’s economy grew by 3.5% in 2016, exceeding last February’s forecast of 2.7% provided by the Economic Forecast Council (EFC).
The province’s higher-than-expected economic growth in 2016 triggers the Economic Stability Dividend (ESD), negotiated as part of the province’s 2014 Economic Stability Mandate. The ESD will increase compensation for unionized employees by 0.4% beginning in Feb. 2018.
“The Economic Stability Dividend helps to share the benefits of B.C.’s growing economy with employees in K-12 education, post-secondary, research universities, health care, Crown corporations, public service and community social services,” said Minister of Finance Carole James. “Our government will continue to ensure that the benefits of economic growth are shared widely by taking action to make life more affordable, improve the services that people rely on, and invest in a strong, sustainable economy.”
To activate the ESD, the GDP growth for British Columbia must exceed the forecast provided by the independent EFC for the fiscal year. The wage increase is calculated based on 50% of the positive difference between the EFC forecast for GDP growth and Statistics Canada’s data. This is the third of four potential dividends.
The province remains on track to be one of Canada’s strongest economies in 2017 and 2018 as most private sector economists, banks and economic think-tanks are forecasting that British Columbia will continue to record real GDP growth that ranks among the best in Canada.
- The Public Sector Employers’ Council Secretariat co-ordinates government’s strategic direction in human resource management and labour relations for the broad public sector. To learn more, visit: https://www2.gov.bc.ca/gov/content/governments/organizational-structure/ministries-organizations/central-government-agencies/public-sector-employers-council-secretariat