Canada’s competitiveness in key industries has been under pressure for years — and recent developments show the problem is worsening, with new waves of job losses hitting strategic sectors.

Nearly six years ago, in November 2019, Kelowna residents were deeply alarmed by news that our local Tolko lumber mill would close, leaving about 174 employees out of work. The closure was made permanent effective January 8, 2020. In that same period, Canfor announced it would curtail operations at all of its B.C. sawmills for two weeks over the holidays due to high fibre costs and weak markets, affecting roughly 2,100 workers.

At the time, I argued that some B.C. forest companies were not leaving the industry so much as leaving British Columbia, redirecting investment to U.S. mills where policy and cost structures are more competitive. Unfortunately, the trend has intensified in the Interior. In 2024, Canfor indefinitely closed sawmills in Vanderhoof and Fort St. John, eliminating about 500 jobs and citing high operating costs, limited access to economic fibre, and escalating U.S. softwood duties. Merritt lost its last standing mill when Aspen Planers announced an indefinite shutdown, a devastating hit to the community. Vanderhoof’s Plateau mill also shut indefinitely at the end of December 2024, displacing more than 200 workers and underscoring a broader regional downturn.

The situation deteriorated further this fall. Interfor announced an indefinite shutdown of its Grand Forks sawmill, with the company and local officials citing weak markets and the latest round of U.S. duties as key reasons. The new U.S. Section 232 tariff of 10 percent on softwood lumber took effect October 14, 2025 and stacks on top of existing anti-dumping and countervailing duties that average about 35 percent for Canadian softwood. In practice, many B.C. exports now face roughly 45 percent at the border. It is hard to compete — and harder still to justify reinvestment — under those conditions.

Why do investments keep heading south? Many competing U.S. jurisdictions simply have lower employer-side payroll costs and do not levy industrial carbon taxes. There is also still no new Canada–U.S. softwood lumber agreement, leaving Canadian producers to navigate serial duty regimes. The policy advantages on the U.S. side make their jurisdictions more attractive for capital, which pulls jobs and production away from communities in B.C.’s Interior.

This pattern isn’t confined to forestry. It’s also hitting the auto sector. Stellantis just announced a US$13 billion plan to expand U.S. manufacturing, shifting Jeep Compass production from Brampton, Ontario, to the reopened Belvidere, Illinois plant — a move expected to create about 3,300 jobs in Illinois and more than 5,000 across several states, while putting thousands of Canadian jobs at risk.

Meanwhile, Canadian governments have pledged up to C$15 billion in production incentives to secure the Stellantis–LG EV battery plant in Windsor — part of an EV subsidy framework that the Parliamentary Budget Officer estimates could take 20 years to break even.

These economic headwinds are now hitting the Central Okanagan, where a recent Statistics Canada report showed unemployment jumping from 5,300 to 9,900 — levels not seen since the pandemic. While my office stands prepared to help those who are struggling to receive EI, my concern is how we respond to these challenges. Supports and subsidies can only go so far. More must be done to grow our economy, so that we can see employment and the revenues to pay for our social safety net.

With challenges mounting across sectors, it is no surprise that Canada’s youth unemployment rate (ages 15–24) is now nearly 15 percent — the worst level in more than 25 years outside the pandemic — with about 460,000 young Canadians out of work.

What can be done? Our Conservative official opposition believes we cannot sit back and ignore these problems. If we don’t act now, more jobs and investment will leave Canada. Our youth jobs plan calls for:

1. Unleash Growth. Scrap anti‑resource laws, cut taxes to drive reinvestment, and slash red tape that is choking homebuilding and business growth.
2. Fix Immigration. Align newcomers’ skills with jobs and housing, and fix credential recognition to meet labour market realities.
3. Target Training. Direct student aid toward in‑demand programs based on objective labour data so taxpayer investments prepare students for real jobs.
4. Build Homes Where Jobs Are. Offer a 100 percent capital cost write‑off for companies that build workforce housing, helping employers attract workers while expanding overall housing supply.

With the Carney Government set to present a budget on November 4, 2025, I will be watching closely to see what, if any, measures they propose to improve competitiveness and offer hope to unemployed Canadians — young and old — in our region.

My question this week: What do you think is the single most important step to keep Canada competitive for jobs and investment?

Please join the discussion online and comment on my Facebook page.

Alternatively, I can be reached at [email protected] or by calling toll‑free at 1‑800‑665‑8711.