- May 2, 2013
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- Michael Swanson
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The economy of the province of Saskatchewan
A new report on the Saskatchewan economy shows that jobs, income and profits for individuals and small businesses will grow substantially in 2013, according to a Toronto- Dominion bank economist. What this means for people living in Saskatchewan, which is Canada’s fastest growing province, is that they will see more money in their pockets and a wide assortment of good-paying jobs to choose from. In addition, small businesses will have a greater opportunity to grow and reap profits from that growth.
The data from the Toronto- Dominion bank shows that Saskatchewan’s unemployment rate is at 3. 9 percent, which is the lowest amongst Canada’s 10 provinces. At present, the jobless rate across Canada is 7.2 percent. Saskatchewan also announced that its economy is running a surplus. The report states that Saskatchewan’s economy will grow by 2. 3 percent in 2013 as compared to 1.6 percent for the remainder of Canada. In 2014, that growth is expected to mushroom to 3.2 percent.
The economic growth is being driven by Saskatchewan’s soaring resource boom. Economic data shows that more than 90 percent of all goods and services produced in the province are focused on basic resource production. That includes oil, gas, livestock, uranium, wood, potash, grains and refined products. All these major companies and people involved in resource production decide on purchases based on driving resource production forward. That means small businesses providing goods and services to maintain the resource economy in farming, mining and other resource sectors are reaping the benefits of these purchases by large companies. Demographically, this means that rural areas such as Saskatoon and Regina are getting less benefit than areas like Moose Jaw or Swift Current. The most recent data shows that nearly 30,000 sole proprietorships operate in Saskatchewan. Those small businesses and large corporations in urban areas of Saskatchewan employ about 76 percent of the workforce in the province. Another 23 percent are employed by small firms in rural areas.
Employment and small business opportunities abound in Saskatchewan. The largest fertilizer producer in the world, Potash Corp. of Saskatchewan Inc., has expanded its operations and is looking to employ more people. Cameco Corp. is setting up a new mining facility at Cigar Lake. It’s believed that this is the world’s biggest high- grade uranium deposit. “Anybody who wants to work in Saskatchewan is working,” said Don Henry who is CEO of Morris Industries Ltd. in Saskatoon. They manufacture farm equipment like seeders and bale carriers. “We are constantly looking at resumes,” Henry added. SaskPower has made a public offer to rent any house within a 100- kilometer radius of its Boundary Dam facility. The company needs more housing for the additional workers that the company plans to hire soon. The highly paid workers in Saskatchewan need a place to hang their hats. Hotel rooms in the area are selling out for a monthly rate of $3,300. That’s more than the rent for an apartment in trendy Manhattan.
People are pouring into Saskatchewan from around the world to set up businesses and apply for work. Each 1 percent of immigrant growth represents a $30 million increase of goods imported into Saskatchewan, according to the Conference Board of Canada. These new immigrants also export $41 million in Saskatchewan goods. Immigrants to Saskatchewan represent about 5 percent of Saskatchewan’s population. Immigration has soared since 2011, but the province still is suffering from a labour shortage. Saskatchewan is booming in both employment and small business opportunities. That growth is expected to continue through 2014.