Falling oil prices are not getting the better of Saskatoon’s economy, according to a recent report by the Saskatoon Region Economic Development Authority.
The city’s diverse economy is shielding it from the potential negative ripple effects of the oil industry’s downturn. For this reason, Saskatoon officially earned a B+ in the report, with a decrease to new housing perhaps preventing it from an even higher grade.
It projects that the city will experience continued growth in 2015 and beyond, though at a more measured pace. Economic indicators include population (which is anticipated to grow by 2.8% in 2015) and unemployment (5.5% in the second quarter of 2015). Another popular indicator is the growth of the labour force, which increased by 3,100 people in the second quarter.
The Conference Board of Canada also expects Saskatoon’s GDP to rise by 1.8% in 2015. As of June, the city’s GDP stood at $17.9bn, with its largest sector being ‘Primary and ‘Utilities’. The finance and construction sector are also key players, each accounting for between $2bn and $3bn.
Population growth has a positive effect on the economy, not just directly in the industries employing new people, but also indirectly because secondary and tertiary industries also benefit from increased employment. For instance, Print companies benefit because there is an increased need for services like flyer and business card printing. Get a Free Quote for Print
