* Thompson-Nicola Regional District data includes Electoral Areas E and I, which are not within ETSI-BC service area. ** ETSI-BC service area includes parts of Fraser Valley Regional District (Hope and Electoral Areas A and B), but Fraser Valley Regional District is not included in the chart.
This topic contains basic information about each area such as population, total employment, and the types of income used in the LAED model. Two special indicators derived from the model are:)
The total after-tax basic income is the sum of employment and non-employment income classified as basic income in the local area economic model, adjusted to subtract estimated taxes. The basic income share uses the area's total after-tax income as a denominator.
The dominant basic income source is the local area's largest basic income source from among the 12 categories. The dominant private sector employment basic income source excludes the Public Sector and both sources of non-employment income to show the area's main source of basic income when it comes to private sector employment.
This is a measure of the industrial specialization within a local area. It measures the share of local employment in a given industry, relative to the provincial average. A location quotient of 2 indicates that an industry has twice as many jobs in the local area, relative to the size of the economy, while a LQ of 0.5 indicates there are half as many.
B.C. Location Quotient: 1
B.C. Location Quotient: 1
Total jobs, rounded to the nearest 10. These figures are the model's sector aggregations, based on custom datasets from the 2016 and 2021 censuses.
This is a type of jobs multiplier that estimates how many additional jobs are supported for each job in a basic industrial sector. It can be expressed as an Indirect or Induced EIR.
The geographical impacts of an area's basic sectors can be expressed, in the context of Employent Impact Ratios, as local impacts only or including impacts on the rest of the province.
This measure helps identify which local areas have strong non-basic sectors that supply services to the rest of the province. It is a measure of the interregional linkages calculated in the model.
Local supply share, for a given non-basic sector, is the share of local demand (composed of indirect supply to basic industries and the household consumption function) that is met by local non-basic industries (local supply). If the share is over 1, the area could be considered a net exporter of that service with the rest of the province and if it is under 1, a net importer.
Note that this measures only intraprovincial linkages within this model and not interprovincial or international trade. Interprovincial and international exports are already accounted for because they are the main component of demand for the 'other basic industries' category.
B.C. Local Supply Share: 100%
B.C. Local Supply Share: 100%
This indicator defines the components of an area's economic base and shows how dependent it is on the different sources of external income. This indicator shows the shares of each area’s basic income which comes from a given basic income source.
The geographical impact of this indicator can be expressed as local only or including demand from the Rest of the Province. Local only measures the employment income from economic activity generated only from local basic industries, e.g. the employment income from the local forestry industry sector and from local non-basic industries which support that sector. Rest of Province adds interregional linkages in the model, or the employment income from local non-basic industries which support basic sectors in other areas of the province.
In percentage points
This topic contains basic information about each area such as population, total employment, and the types of income used in the LAED model. Two special indicators derived from the model are:)
The total after-tax basic income is the sum of employment and non-employment income classified as basic income in the local area economic model, adjusted to subtract estimated taxes. The basic income share uses the area's total after-tax income as a denominator.
The dominant basic income source is the local area's largest basic income source from among the 12 categories. The dominant private sector employment basic income source excludes the Public Sector and both sources of non-employment income to show the area's main source of basic income when it comes to private sector employment.
This is a measure of the industrial specialization within a local area. It measures the share of local employment in a given industry, relative to the provincial average. A location quotient of 2 indicates that an industry has twice as many jobs in the local area, relative to the size of the economy, while a LQ of 0.5 indicates there are half as many.
B.C. Location Quotient: 1
B.C. Location Quotient: 1
Total jobs, rounded to the nearest 10. These figures are the model's sector aggregations, based on custom datasets from the 2016 and 2021 censuses.
This is a type of jobs multiplier that estimates how many additional jobs are supported for each job in a basic industrial sector. It can be expressed as an Indirect or Induced EIR.
The geographical impacts of an area's basic sectors can be expressed, in the context of Employent Impact Ratios, as local impacts only or including impacts on the rest of the province.
This measure helps identify which local areas have strong non-basic sectors that supply services to the rest of the province. It is a measure of the interregional linkages calculated in the model.
Local supply share, for a given non-basic sector, is the share of local demand (composed of indirect supply to basic industries and the household consumption function) that is met by local non-basic industries (local supply). If the share is over 1, the area could be considered a net exporter of that service with the rest of the province and if it is under 1, a net importer.
Note that this measures only intraprovincial linkages within this model and not interprovincial or international trade. Interprovincial and international exports are already accounted for because they are the main component of demand for the 'other basic industries' category.
B.C. Local Supply Share: 100%
B.C. Local Supply Share: 100%
This indicator defines the components of an area's economic base and shows how dependent it is on the different sources of external income. This indicator shows the shares of each area’s basic income which comes from a given basic income source.
The geographical impact of this indicator can be expressed as local only or including demand from the Rest of the Province. Local only measures the employment income from economic activity generated only from local basic industries, e.g. the employment income from the local forestry industry sector and from local non-basic industries which support that sector. Rest of Province adds interregional linkages in the model, or the employment income from local non-basic industries which support basic sectors in other areas of the province.
In percentage points
* Thompson-Nicola Regional District data includes Electoral Areas E and I, which are not within ETSI-BC service area.
** ETSI-BC service area includes parts of Fraser Valley Regional District (Hope and Electoral Areas A and B), but Fraser Valley Regional District is not included in the data table output.
The Local Area Economic Profile Report is a new edition of an economic model that was previous called the Local Area Economic Dependencies and was last published by BC Stats in 2009.
This project creates a consistent economic model for 103 local areas in British Columbia. It combines detailed census data with the province's macroeconomic model and is primarily intended to provide information on rural areas and to help estimate the impact of economic changes.
The fundamental premise of this work is that the economy of a community can be represented by income flows that can be classified as basic or non-basic. Basic income flows into the community from the outside world in the form of employment income or non-employment income, while non-basic income is generated from jobs that provide goods and services to the people who live there.
There are 12 sources of basic income used in the LAED model: 10 industrial sectors and two types of non-employment income.
Non-basic income is generated from jobs in the community that provide goods and services to individuals who live there. Examples of these include much of retail trade, local transportation services, financial services and personal services.
Definitions of basic and non-basic sectors, according to the North American Industry Classification System (NAICS), can be found in the sheets Industry Definitions and Sector Aggregations.
The direct effect represents the basic industry sector itself, whether expressed as economic output, jobs, or the associated employment income. For example, industries that are directly in the High Tech Manufacturing sector are the ones shown in the concordance tables in the sheets "Industry Definitions" and "Sector Aggregations".
The indirect effect estimates how much output is needed from other non-basic industries which act as intermediate suppliers to the direct basic industries. For example, the basic sector Mining, Oil and Gas uses a large amount of intermediate inputs from the Utilities sector. The indirect effect is calculated according to data in the province's input-output tables.
The imputed effect estimates the impact of household spending in the local economy. It is calculated according to the household final consumption estimates in the B.C. supply-use and input-output tables. For each area, total after-tax income is translated into output and jobs in non-basic sectors such as retail, low tech business services, etc.
If the census data indicates that a local area doesn’t have large enough industries to meet the demand that is implied by the indirect and induced effects, the model reallocates the excess to other areas in B.C. with enough capacity. This gives rise to variations in the descriptive statistics which include or exclude the impact that the rest of the province has on the local area and vice versa.
The census is the most detailed picture available of economic conditions down to the very local level in British Columbia. The LAED model uses custom census tabulations based on the long-form census which show, for each of the 103 local areas and 29 census divisions (also called regional districts), estimates of employment and employment income for 303 industries at the 4-digit NAICS level, as shown in the first column of the sheet "Industry Definitions". Additional census data is used for measures of total income, total employment income, total government transfers, total market non-employment income, and total after-tax income.
This model uses data from the 2016 and 2021 censuses. The reference years are 2015 and 2020, respectively, because those are deemed the most appropriate due to the way the census asks people to respond. For employment income, respondents are asked what was their employment income in the previous year; for employment by industry, respondents are asked what job they held during a certain week in May of 2016 or 2021, and if a person did not work during that week but had worked at some time since January of the previous year, the information relates to the job they held the longest during that period.
In most years, employment data is not expected to change significantly in one year. But because of the extraordinary impacts of the COVID-19 pandemic that assumption may not hold for the 2021 census and 2020 reference year. Users should interpret those results with caution and in particular, the 2020 tourism results.
The 103 local areas were assembled in consultation with government staff who have knowledge of those areas and with the intention of selecting meaningful economic units. They are aggregations of one or more census subdivisions (CSDs), as shown in the sheet "EDA boundaries".
Input-output tables describe the sale and purchase relationships between producers and consumers within an economy. They show flows of final and intermediate goods and services defined according to industry. They are used to estimate the indirect effect (for a given amount of output in a direct basic industry, which non-basic industries are impacted and how much) and induced effect. Statistics Canada produces IOTs for each province annually.
Note: Tourism estimates include portions of many industries, some large but most very small. The LAED's tourism model is based off Statistics Canada's Tourism Satellite Accounts. It estimates the shares of products which are bought by tourists and divides them between the industries producing those products. Industries here are grouped into sub-categories of tourism based on the primary tourism product they produce.
Tourism retail includes small portions of many industries. By order of total tourism output, the first 50 out of 104 industries in the list are:
Note: Construction employment is treated differently in the NAICS and Input-Output Industry Classification (IOIC) systems. A special module in the LAED model was created to translate the census data, which use NAICS, to the input-output tables, which are organized based on the final purpose of the construction activity. The final results in the LAED model are presented in a format similar to the final demand categories of the supply-use tables.
The model uses data from the 2016 and 2021 Censuses. The reference years are for 2015 and 2020, respectively, as those are deemed the most appropriate by Statistics Canada because of how people respond to the Census. The 2020 reference year presents multiple problems that readers should be aware of. First, in a normal year most people’s employment status is not expected to change much. Between 2020 and 2021, however, many people lost jobs, worked reduced hours and lost income, and/or changed jobs due to impacts related to the COVID-19 pandemic. Second, at the time of publication, the 2020 input-output tables had not been released by Statistics Canada, so this study uses the 2019 tables to represent the macroeconomic structure of B.C.’s economy.
Despite these known problems, BC Stats has decided to publish the 2020 results for readers’ interest. Some indicators should not be affected – for example, the Location Quotients and dominant basic income sources – while some will be impacted more. Results for the 2015 reference year are considered more reliable, though both reference years are available in the detailed results workbook. Additionally, we have decided not to publish statistics that use the “rest of province” geographical impact variable, available for the Income Dependence and Employment Impact Ratio indicators because the model calculates unreasonably high demand for many service sectors, and BC Stats needs to address how those excesses get reallocated by the model. BC Stats will work to address these issues in future updates of the model.
The local area economic model has its foundation in Economic Base Theory. This theory assumes that a community’s exports and external sources of income are its "economic base" and are important because they pay for imports.
Users of this application should be cautioned that, while Economic Base Theory provides some useful descriptive statistics, it tells us little about how regions become more prosperous over time. Regions with a high proportion of jobs in export-oriented industries are sometimes the most post-industrial or low income places where people don’t want to live. Both basic and non-basic activities are needed to make a community more than just a work camp, and there are other theories of economic growth that tell us it is primarily people – their education levels, network effects, quality of life and so on – that matter to the economic prosperity of a region.