A task force re-established to map out the Capital Region's economic vulnerabilities has released a report of preliminary findings, following a public survey of community and business leaders across the city.
The South Island Prosperity Partnership's (SIPP) Rising Economy Task Force 2.0 – first launched in 2020 to address the economic impacts of the COVID-19 pandemic – found that while the region is brimming with potential, it remains hampered by fragmentation and entrenched structural issues.
"Our early findings present a clear picture: Greater Victoria possesses incredible strengths, and we are poised to activate our full capacity," noted Aaron Stone, task force chair and CEO of SIPP.
According to the report, released June 5, the region has seen a 47 per cent increase in single-family home prices since 2019, along with a recommended living wage that has risen 30 per cent in just a few years.
Between 2019 and 2024, public sector job growth outpaced the private sector – with 17,400 new jobs compared to 14,400 – which means other sectors of the economy, such as retail and services, are "highly dependent" on public sector spending in Greater Victoria. The report notes that Victoria’s average GDP per worker — the value each worker contributes to the economy — is $101,000, lower than the Vancouver Island average of $110,000 and the provincial average of $162,000.
"The healthcare, construction and service sectors are desperate for workers, especially as our population ages and young families leave due to cost pressures. A low unemployment rate is typically a sign of economic stability, but in the case of Greater Victoria, it also means that many of our workers have left the region’s workforce entirely," noted the report.
In Victoria's downtown, remote work, the opioid crisis and public safety concerns continue to pose a threat to retail, hospitality and cultural sectors, the report notes. The report cites a street-front vacancy rate of 11 per cent in the last quarter of 2024, with office vacancy rates averaging 10.8 per cent.
SIPP says now is the time to confront long-standing structural challenges. That includes reducing reliance on government jobs to spur private sector growth, closing the economic opportunity gap for Indigenous communities, and helping aging entrepreneurs transition their businesses to address succession and prevent economic leakage.
The group also calls for tackling the affordability crisis through investments in housing, transportation, and infrastructure; seizing global export opportunities; and easing the regulatory burden on small businesses.
"These are not abstract issues; they are identifiable challenges that, once addressed, will unlock our full potential. This includes creating high-value jobs for the next generation, attracting healthcare and essential workers, and maintaining our quality of life through sustainable prosperity and innovation.
"The current global trade dynamics further highlight the importance of a bold vision for Greater Victoria’s economy and decisive, unified action that aligns with residents’ values and provincial and federal priorities," said Stone.
On May 27, SIPP presented a set of long-term strategic initiatives for public input, which will form SIPP's renewed five-year economic plan to be presented to municipal councils in the fall.
