Economic Indicators Q2 2026

Economic Indicators August 20, 2026

The Central Okanagan economy continued to show signs of growth in the second quarter of 2026, with a larger workforce, more people employed, and higher airport passenger volumes. However, construction activity slowed, and the unemployment rate increased as the labour force grew faster than employment. Together, these indicators reflect an economy that remains active while adjusting to changing market conditions.

Labour Force Growth and Labour Demand

The Central Okanagan labour force increased to 133,850 in Q2 2026, up from 119,067 in Q2 2025, representing a 12.4% increase. Total employment also rose, increasing 3.1% from 119,067 to 122,767 over the same period. While employment growth is a positive sign, the labour force expanded at a much faster rate than the number of jobs available. This may reflect an increasing number of people entering or re-entering the workforce. As a result, the unemployment rate increased from 6.1% in Q2 2025 to 8.3% in Q2 2026, an increase of 2.2 percentage points. The rise may reflect more people actively seeking work than available positions in the labour market.

Employers posted 11,632 job openings between January and June 2026, a slight 1.4% decrease from 11,799 postings during the same period in 2025. Despite the modest decline, labour demand remained relatively steady. Sales and service occupations generated the highest number of postings, accounting for 3,825 positions, or 32.9% of all job vacancies. Trades, transport and equipment operators followed with 1,711 job openings, while business, finance and administration occupations recorded 1,611 postings. The concentration of opportunities across these occupations reflects the continued strength of the region’s retail, tourism, hospitality, construction, transportation, and business support sectors, highlighting the diverse labour needs of the Central Okanagan economy.

Residential Construction Slows

Housing construction activity moderated in Q2 2026. Total housing starts declined 37.0%, falling from 1,814 units in Q2 2025 to 1,143 units in Q2 2026.

Multi-family housing starts followed a similar trend, decreasing 37.1% from 1,679 units to 1,056 units. Despite the decline, multi-family developments continued to account for the majority of housing starts in the region, representing more than 90% of all starts.

The decrease in housing construction activity may reflect changing market conditions, project timing, and ongoing cost and financing considerations facing developers.

Building Permit Values Remain Above Historical Levels

Building permit values totaled $622,774,925 in Q2 2026, down 5.7% from $660,475,595 in Q2 2025. However, permit values remained 7.3% higher than Q2 2024, when values reached $580,195,168.

Although construction investment softened compared to last year, permit values remain elevated relative to historical levels, suggesting continued development activity and investment throughout the region.

Airport Passenger Traffic Continues to Grow

Kelowna International Airport (YLW) recorded 558,150 passengers during Q2 2026, a 7.7% increase from 518,023 passengers in Q2 2025. Growth was supported by continued demand for leisure and business travel, increased airline connectivity, including Porter’s new direct service to Ottawa, and major events such as the 2026 Memorial Cup and Kelowna HOOPFEST. Following a record 2.3 million passengers in 2025, YLW has continued to benefit from expanded seat capacity, larger aircraft, and ongoing terminal improvements, reinforcing its role as the primary transportation gateway for British Columbia’s Interior.

Median New Home Price in Kelowna

The median new home price in Kelowna reached $1,565,000 in Q2 2026, placing it above several major Canadian markets. By comparison, median new home prices were $1,420,000 in Toronto, $735,000 in Calgary, and $2,100,000 in Vancouver.

Kelowna’s position among Canada’s more expensive housing markets continues to reflect strong demand for housing and limited supply relative to population growth.

Looking Ahead

The Central Okanagan economy continued to demonstrate resilience in Q2 2026, supported by growth in the labour force, employment levels, airport passenger volumes, and ongoing construction activity. These indicators reflect a region that remains attractive for residents, businesses, and investment. Although some measures, such as unemployment and housing starts, indicate areas of adjustment, overall economic activity remains steady. As growth continues, these indicators will help monitor emerging opportunities and support the region’s long-term economic strength through the remainder of 2026.

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