A Fraser Institute study says B.C.’s median employment income and GDP per person in 2024 trailed neighbouring U.S. states, citing weaker investment and productivity growth.
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A Fraser Institute study comparing British Columbia with the United States says B.C.’s economy is underperforming on key measures of living standards and points to lagging investment and productivity as part of the explanation.
The study reports that in 2024, the median employment income in B.C.—the level where half of workers earn more and half earn less—was $38,177 in inflation-adjusted Canadian dollars. It was lower than in all 50 U.S. states, including Mississippi ($44,090), Louisiana ($45,435) and Washington state ($51,597). The study describes this as a gap of $13,420 between a typical Washington worker and a typical worker in B.C.
The study also finds B.C.’s 2024 gross domestic product per person, described as a broad measure of living standards, was $60,131. That figure was lower than Washington state ($107,382) and California ($101,842).
On the drivers behind those differences, the study says productivity growth in B.C. from 2007 to 2024 rose by 12.2 per cent, compared with a 28.4 per cent median productivity growth rate across all 50 U.S. states. It also reports that during the same period, business investment per worker increased by 18 per cent in B.C., versus 57.9 per cent in the U.S.
The authors say business investment and productivity are closely linked because investment in machinery, equipment and new technologies gives workers better tools, which can support higher output and, in turn, higher wages.
Writing on behalf of the Fraser Institute, Tegan Hill, acting director of B.C. policy, and Taylor Oliver, an analyst at the institute, argue that the next provincial government should focus on policy changes aimed at improving investor confidence and narrowing B.C.’s gap with competitors, including balancing the budget, reducing tax rates, and cutting red tape and barriers to trade.
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