Economic indicators show Central Okanagan economic resilience in 2025

Despite a year marked by global trade uncertainty, geopolitical tensions and shifting economic conditions, the Central Okanagan demonstrated continued resilience and forward momentum in 2025, according to the latest Economic Indicators released by the Central Okanagan Economic Development Commission.

The data shows growth in labour force participation, sustained investment in higher-value development, steady business formation and continued strength in air travel, reinforcing the region’s adaptability amid changing economic conditions.

“Taken together, these indicators show a region that continues to attract investment, talent and opportunity, even amid volatility at the national and global level,” says Krista Mallory, manager of the Central Okanagan Economic Development Commission. “The Central Okanagan is building long-term economic strength through diversification, connectivity and innovation.”

Labour force participation 
Labour market data for Q4 2025 shows notable shifts compared to Q4 2024. Statistics Canada’s Labour Force Survey estimates the Central Okanagan labour force expanded by 18.4 per cent year over year to 143,000 people, while employment increased from 115,233 to 132,767. The labour force participation rate rose from 58.7 per cent to 68.8 per cent, indicating more residents were actively seeking and securing work.

Unemployment increased from 4.6 per cent in Q4 2024 to 8.4 per cent in Q4 2025 as labour force growth outpaced job creation. Statistics Canada notes smaller regions can experience greater quarterly volatility due to limited sample sizes.

Job postings in the region totalled 10,261 in 2025, with Healthcare and Social Assistance leading all sectors, followed by Retail Trade. Finance and Insurance and Manufacturing recorded more moderate but steady hiring activity.

“The increase in our participation rate tells us that more residents are entering or re entering the labour market, whether because they see opportunity or because their circumstances have changed,” says Krista Mallory, manager of the Central Okanagan Economic Development Commission. “At the same time, the rise in unemployment reflects the reality that, while the numbers of jobs in the region grew, the number of people looking for work grew faster than the number of available positions. These shifts are not unusual in a fast growing region, and they highlight the importance of watching longer term trends rather than reacting to any single quarter.”

Development and business formation
Construction activity reflected a shift toward higher-value development. Housing starts declined from 3,790 units in 2024 to 2,600 units in 2025, according to the Canada Mortgage and Housing Corporation. At the same time, the total value of building permits increased from $1.14 billion to $1.35 billion, suggesting continued investment in higher-value residential, commercial, industrial, institutional and renovation projects.

Business licensing activity continued to rise, with 17,299 business licences issued in 2025, up from 16,802 in 2024, reflecting ongoing entrepreneurial activity across the region.

Supporting the manufacturing sector through economic headwinds was also a focus in 2025. The Okanagan Manufacturing Database, created in 2025, includes more than 750 firms, and the Okanagan Manufacturers Network was launched to support collaboration and sector growth from Salmon Arm to Osoyoos. 

Air travel
Kelowna International Airport continued to support regional economic activity as passenger volumes grew year over year. Total annual passengers increased from 2,133,582 in 2024 to 2,315,432 in 2025, an 8.5 per cent increase. A newly released impact study showed the airport generated more than $2 billion in economic output and supported more than 9,200 jobs in 2024.

As 2025 concluded, the indicators point to a region adjusting to changing conditions while maintaining economic activity and investment. The Central Okanagan Economic Development Commission continues to monitor and report on regional economic trends to support informed decision-making across the region. Visit the COEDC Data portal at data.investkelowna.com for up-to-date statistics.