BC’s capital city is driven by both the private & public sectors. Victoria isn’t just a stunning destination, but a thriving growth hub.
Victoria, British Columbia, stands as a beacon of economic vitality and cultural richness. This picturesque capital city thrives on a diverse economy driven by burgeoning technology, robust tourism, essential public administration, dynamic education, and a flourishing marine industry. In May 2024, the city had a 5% unemployment rate,1 well below the 5.6% provincial rate.2
Join us as we explore the economic pillars that make Victoria not only a stunning destination but also a thriving hub of innovation and growth.
A Hub for Technology and Innovation
Victoria has emerged as a burgeoning hub for technology and innovation. The tech sector is one of the fastest-growing industries in the city, with a focus on software development, digital media, and telecommunications.
According to Viatech, some 17,000 people were employed in the sector in 2022.3
Companies like Redbrick, a parent organization of successful tech ventures and global firms such as AbeBooks, a subsidiary of Amazon, underscore Victoria’s thriving tech landscape. The city’s supportive ecosystem, including incubators and accelerators, fosters innovation and attracts talent from around the world.
Victoria’s Tourism Industry
Tourism remains a cornerstone of Victoria’s economy, drawing millions of visitors annually. The city’s rich history, picturesque landscapes, and cultural attractions make it a popular destination. Key attractions include the Royal BC Museum, Butchart Gardens, and the historic Inner Harbour. The tourism industry supports numerous jobs in hospitality, retail, and transportation, contributing significantly to local economic activity.
According to Townfolio, 4,690 people worked in accommodations in Victoria in 2022, approximately 9% of the city’s total labour force of 52,525.4 This easily outpaces the provincial average of 6.7%.5
Public Administration in Victoria
As the provincial capital, Victoria hosts numerous government offices and agencies, making public administration a vital industry. This sector provides stable employment opportunities and drives demand for various services, including legal, consulting, and office supply businesses. The presence of provincial government headquarters ensures a consistent flow of economic activity.
6,915 people were employed in the sector in 2022, representing over 13% of the labour force.4 This compares to just 5.2% province-wide.5
Education Drives Research, Employment in Victoria
Victoria is home to several prominent educational institutions, including the University of Victoria (UVic) and Royal Roads University. These institutions not only educate thousands of students but also drive research and innovation. The education sector’s influence extends to housing, retail, and local services, as students and staff contribute to the economy.
Additionally, primary and secondary schools are also major employers.
4.450 Victorians, or 8.4% of the labour force, were employed in the sector in 2022,4 outpacing the provincial rate of 7.3%.5
Healthcare in Victoria Employs Many
Healthcare is another major industry in Victoria, with institutions like the Royal Jubilee Hospital and Victoria General Hospital providing essential services. This sector ensures the well-being of residents while generating substantial employment opportunities in medical, administrative, and support roles.
Nearly 15% of the city’s labour force was employed in the sector in 2022,4 edging the provincial rate of 13.4%.5
Real Estate and Construction in Victoria
The real estate and construction industries have seen robust growth due to Victoria’s desirability as a place to live and work. This sector encompasses residential, commercial, and infrastructure projects, driving investment and job creation. The real estate market in Victoria is characterized by high demand and rising property values, reflecting the city’s economic vitality.
Construction employed 2,955 in Victoria in 2022, or 5.6% of the labour force. Another 1,135 were employed in real estate, approximately 2.2% of the labour force.4 This compares to 8.6% and 2% province-wide.5
Conclusion
Victoria’s economy is multifaceted, with each of these industries playing a crucial role in its development and sustainability. From the burgeoning tech sector to the enduring appeal of tourism and the stability of public administration, these industries collectively drive the city’s economic growth. Understanding these key sectors offers valuable insights into the opportunities and challenges that shape Victoria’s economic landscape.
Cited Sources
1 Government of Canada, Statistics Canada. “Regional Unemployment Rates Used by the Employment Insurance Program, Three-Month Moving Average, Seasonally Adjusted.” Regional unemployment rates used by the Employment Insurance program, three-month moving average, seasonally adjusted, June 7, 2024. https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410035401.
2 BC’s unemployment rate rises to 5.6% in May, still below national average. Accessed June 12, 2024. https://www.pentictonherald.ca/spare_news/article_b04c4d11-dd4c-5495-86cb-3e66295933dd.html.
3 Quinn, Anna. “‘maybe Even a Unicorn?’ 13 Predictions for Victoria Tech in 2023.” GZ Module Pages, August 8, 2019. https://members.viatec.ca/news/Details/maybe-even-a-unicorn-13-predictions-for-victoria-tech-in-2023-141875.
4 “Labour-Force.” Townfolio. Accessed June 12, 2024. https://townfolio.co/bc/victoria/labour-force.
5 Services, Ministry of Citizens’. “Number of Businesses & Employment by Industry.” Province of British Columbia, September 26, 2023. https://www2.gov.bc.ca/gov/content/data/statistics/business-industry-trade/number-of-businesses-and-employment-by-industry.
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