Kelowna Records Canada's Highest Urban Unemployment Rate

The City of Kelowna recorded Canada's highest unemployment rate among major urban centres for two consecutive months, reaching 9.2 percent in June 2026. Although the city added approximately 2,300 jobs during the month, the unemployment rate climbed from 9 percent in May because the labour force expanded by 2,900 people, outpacing job creation.

This economic downturn coincides with a significant demographic shift, as Kelowna experienced its first population decrease since at least 2000. The city also currently maintains the highest apartment vacancy rate in Canada, suggesting a combined crisis of employment and housing stability that may be driving residents away.

Mayor Tom Dyas criticized the Central Okanagan Economic Development Commission's effectiveness in managing these trends. In response to the soft job market, Dyas proposed establishing a separate city economic development agency to implement more targeted growth strategies.

City Councillor and mayoral candidate Ron Cannan argued that the population drop indicates the current economic approach is failing. These local struggles contrast with broader provincial data from British Columbia, which added 7,800 jobs in June. While provincial officials highlighted a high average hourly wage of $38.63 and overall resilience against U.S. tariffs, Kelowna's specific metrics point to a localized economic contraction.