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  Kootenay  

About Kootenay

Kootenay is sandwiched between Thompson-Okanagan in the north and west, the United States to the south, and the Rockies to the east. It is a mountainous region with many rivers, hot springs, and canyons. The climate in Kootenay varies, but summers are generally hot and dry while the winters tend to be relatively cold.

Kootenay includes three regional districts:

  • Central Kootenay
  • East Kootenay
  • Kootenay-Boundary

The people

With a population of 148,800 people, Kootenay is the fifth largest region (based on population) in the province, home to just over 3% of British Columbians.

The population of Kootenay is relatively evenly dispersed among its regional districts. East Kootenay, which includes the area around Cranbrook, has the largest population (59,000). Nelson, Castlegar, and Creston are located in Central Kootenay (58,800), the second-most populous regional district. Kootenay-Boundary, which includes the mining towns of Trail and Rossland, as well as Grand Forks, has a population of 31,900.

Kootenay’s senior population now exceeds the number of children living in the region

  Figure 80  
Figure 80

Kootenay’s senior population now exceeds the number of children living in the region

Data Source: BC Stats

In Kootenay, two out of three (67%) residents are between the ages of 15 and 64, well below the provincial average of nearly 70%. Children (aged 15 and under) make up 15% of the region’s population. Seventeen percent of the population was aged 65 or more in 2008.

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Where are the people located?

Four out of 10 residents live in unincorporated areas

  Figure 81  
Figure 81

Four out of 10 residents live in unincorporated areas

Data Source: BC Stats

Sixty percent of Kootenay’s residents live inside municipal boundaries, while 40% are located in unincorporated areas, making it one of the most rural regions of the province. North Coast & Nechako (43%) is the only region with a larger rural population.

In Central Kootenay, more than half (54%) of the 59,000 residents live in rural areas. East Kootenay (29%) and Kootenay Boundary (34%) have a proportionally smaller rural population.

Forty-three percent of the region’s workforce is located in East Kootenay

  Figure 82  
Figure 82

Forty-three percent of the region’s workforce is located in East Kootenay

Data Source: Statistics Canada & BC Stats

East Kootenay is home to 39% of the region’s population, and an even bigger share (43%) of its workforce. Thirty-six percent of the workforce is located in Central Kootenay, while one in five workers is located in Kootenay-Boundary.

The workforce

There were 71,500 people working in Kootenay in 2008, making up just 3% of total employment in the province. About 46% of the workforce in Kootenay is female, slightly less than the share for the province as a whole (47%).

Self-employment is very common in this region. Nearly 23% of the workers are self-employed, considerably more than the 19% average for all of BC.

Full-time employment is slightly less common in Kootenay than in other parts of the province

  Figure 83  
Figure 83

Full-time employment is slightly less common in Kootenay than in other parts of the province

Data Source: Statistics Canada

About 77% of the region’s workforce was employed full time in 2008, slightly less than the provincial average of 80%.

Kootenay’s unemployment rate tends to be a little higher than the province’s jobless rate. The average rate in Kootenay was 8.6% during the period from 1995 to 2008, compared to 7.2% for all of BC.

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The economy

Three out of 10 workers are employed in goods-producing industries

  Figure 84  
Figure 84

Three out of 10 workers are employed in goods-producing industries

Data Source: Statistics Canada

Goods-producing industries such as forestry, mining, and agriculture play a much bigger role in Kootenay than is the case in the province as a whole. Thirty-one percent of the region’s workforce is employed in goods industries.

Construction and forestry, fishing, and mining are key employers

  Figure 85  
Figure 85

Construction and forestry, fishing, and mining are key employers

Data Source: Statistics Canada

Construction is the biggest employer in the goods sector and the second-biggest in the region, after wholesale & retail trade. Eleven percent of the region’s workers have jobs in this industry. Forestry, fishing & mining (10%) and manufacturing (6%) are also key employers. Three percent of the region’s workers have jobs in agriculture.

Most (three-quarters) of the jobs in the forestry, fishing & mining industry are in mining. There are a number of coal mines in the region, most of which are located in East Kootenay. Coal mining accounts for the bulk of mining employment, but the region is also home to a gold-copper mine, as well as operations that extract building stone, gypsum and aggregates. Forestry & logging activities occur throughout the region, but nearly half of the forestry & logging jobs are in Central Kootenay.

Most of the manufacturing activities in Kootenay are related to the processing of natural resources. Wood (35%) and paper (11%) production employ nearly half of the people working in manufacturing. The region is home to the Trail-Cominco zinc-lead smelter, and mineral processing (23%) is another important manufacturing employer.

Farming activities employ 3% of Kootenay’s workforce. Fruit farming and greenhouse, nursery & floriculture production are the main crop farming activities. There are also a significant number of cattle ranches and farms in the region.

In the utilities industry, Kootenay is the location of a number of hydroelectric dams, including the Seven Mile, Kootenay Canal, Waneta, Brilliant and Keenleyside dams.

Wholesale & retail trade, accommodation & food services, and health & social assistance are the biggest employers in the service sector

  Figure 86  
Figure 86

Wholesale & retail trade, accommodation & food services, and health & social assistance are the biggest employers in the service sector

Data Source: Statistics Canada

As is the case in the rest of the province, service industries employ the biggest share of the workforce—about 73%. Wholesale & retail trade is the largest service sector employer (18%). Other key industries include accommodation & food services (10%), health & social assistance (9%) and education (7%).

Kootenay is located in a very scenic part of the province, and many travellers visit the region. Nelson, for example, is known for some of its historic homes, and other locations are also enjoyed by visitors throughout the year.

Post-secondary institutions located in Kootenay include the College of the Rockies and Selkirk College.

How does the region’s economic structure compare to BC’s?

The region accounts for just 3% of total employment in the province, but more than 4% of all jobs in goods-producing industries. Workers in Kootenay hold about 15% of the jobs in forestry and logging, and 7% of all jobs in the province’s agriculture industry.

Because goods industries are so important to the region’s economy, the share of most service industries in total employment is lower than average.

Accommodation and food services (4%), wholesale & retail trade (4%), and education (3%) are the only industries where the region accounts for a higher-than-average share of total BC employment.

The region accounts for a significant share of total employment in BC’s mining and agriculture industries

  Figure 87  
Figure 87

The region accounts for a significant share of total employment in BC’s mining and agriculture industries

Data Source: Statistics Canada

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What’s happened since 1995?

After several years of decline, Kootenay’s population has begun to increase, but has not kept pace with the rest of the province

  Figure 88  
Figure 88

After several years of decline, Kootenay’s population has begun to increase, but has not kept pace with the rest of the province

Data Source: BC Stats

The region’s population declined throughout most of the period since 1995, but has been growing in recent years. In 2008, it was at virtually the same level as in 1995. Population growth in all age groups has been well below the average for the province. The number of working-aged people living in Kootenay has increased just 3%, considerably less than the 20% increase at the provincial level. Kootenay’s senior population is growing (+24%), but there were 26% fewer children living in the region in 2008 than in 1995.

Total employment in the region has increased just 3% since 1995. Employment in the service sector has declined marginally (-2%), but there were 15% more jobs in goods producing industries.

The volatility in goods sector employment during this period is a reflection of the region’s dependence on resource-based activities, which tend to experience booms and busts. Although employment in the goods sector increased 15% between 1995 and 2008, at one point during this period, the number of jobs in goods-producing industries was down to 79% of the 1995 level.

Employment in the goods sector has been very volatile

  Figure 89  
Figure 89

Employment in the goods sector has been very volatile

Data Source: Statistics Canada

The number of construction jobs in Kootenay has increased significantly (+82%) since 1995. Employment in forestry, fishing & mining is also considerably higher (+38%). Information for agriculture and utilities isn’t available for all years, so it’s not possible to calculate long-term changes in employment. However, taken together, employment in these industries has increased 37%. Manufacturing hasn’t fared as well, shedding 43% of its workforce since 1995.

Although most industries have made gains, but there have been significant job losses in manufacturing

  Figure 90  
Figure 90

Although most industries have made gains, but there have been significant job losses in manufacturing

Data Source: Statistics Canada

There are fewer service sector jobs, despite gains in some industries

  Figure 91  
Figure 91

There are fewer service sector jobs, despite gains in some industries

Data Source: Statistics Canada

Job growth in the service sector has also been volatile. Over the longer run, employment has declined 2%, with some industries cutting back significantly, while others have taken on more workers. Professional, scientific & technical services, which has close ties to both the construction and mining industries, has posted the strongest growth (+35%), followed closely by transportation & warehousing (+26%). Business, building & support services (+23%) and wholesale & retail trade (+17%) have also expanded their workforce quite significantly.

However, there are 33% fewer workers in public administration, and there have also been job losses in finance, insurance & real estate (-30%) and in other services (-26%).

A note of caution: employment estimates are based on survey data. With relatively few people living in the region, some of the volatility in the data may be due to the way they are estimated.

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What’s the outlook to 2013?

The region’s population is expected to continue to grow at a slower pace than in the province as a whole, and its share of total population and employment is expected to decline. It’s anticipated that Kootenay’s share of total goods sector employment will remain at about 5%, while its share of all service sector jobs in BC remain at just over 3%.

Population and job growth in the region are expected to remain below average

  Figure 92  
Figure 92

Population and job growth in the region are expected to remain below average

Data Source: BC Stats
Regional Employment Projection Model & PEOPLE 34

 

Table 7
Population and Labour Force Characteristics, Kootenay

Kootenay
Kootenay
British Columbia
Kootenay
2008 Data
('000)
Percent of total
as a percent
of BC total
Population characteristics
Population ('000)
149.8
100.0
100.0
3.4
Working Age (15-64)
101.0
67.4
69.8
3.3
Aged 65 and older
25.8
17.2
14.5
4.0
Under 15
23.0
15.4
15.7
3.4
         
Labour force characteristics
Employment ('000)
71.5
100.0
100.0
3.1
Employed full-time
54.9
76.8
79.9
3.0
Self-employed
16.1
22.5
18.5
3.8
Employed females
33.1
46.3
46.8
3.1
   
Average, 1995-2008 (%)
 
Unemployment rate
8.6
7.2

Data Source: Statistics Canada & BC Stats

 

Table 8
Employment by Industry, Kootenay

 
Kootenay
BC
 
Employment ('000)
Distribution of employment (%)
Percent of BC total
Distribution of employment (%)
All industries
71.5
100.0
3.1
100.0
Goods
22.1
30.9
4.4
21.7
Construction
8.0
11.2
6.6
9.5
Forestry, fishing & mining
6.9
9.7
15.2
2.0
Manufacturing
4.6
6.4
2.5
8.1
Agriculture
2.4
3.4
7.1
1.5
Utilities
0.2
0.3
1.4
0.6
Services
49.4
69.1
2.7
78.3
Wholesale & retail trade
12.7
17.8
3.6
15.3
Accomodation & food
7.2
10.1
4.0
7.7
Health & social assistance
6.1
8.5
2.5
10.6
Education
5.0
7.0
3.1
7.0
Professional, scientific & technical
3.5
4.9
2.0
7.5
Transportation & warehousing
3.4
4.8
2.7
5.5
Information, culture & recreation
3.0
4.2
2.5
5.1
Other services
2.8
3.9
2.8
4.4
Finance, insurance & real estate
2.3
3.2
1.6
6.4
Public administration
1.8
2.5

1.7

4.4
Business, building & support
1.6
2.2
1.6
4.4

Data Source: Statistics Canada

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A Guide to the BC Economy and Labour MarketA Guide to the BC Economy and Labour Market