The Conference Board of Canada has released two comprehensive reports forecasting a bright future for Yukon’s economy and labour market. Despite short-term challenges, such as a projected 3.2% decline in real GDP for 2024 due to reduced mining output, Yukon is poised for recovery and long-term growth. By 2025-2028, the territory’s GDP is expected to grow at an average annual rate of 2.1%, supported by robust tourism, non-residential investment, and a stronger consumer spending environment.
Key Highlights of Yukon’s Economic Forecast
Labour Market Expansion
The workforce is projected to grow by 10% by 2045.
Employment in non-commercial services is expected to rise by 14%, with strong demand in health, education, and public services.
Commercial services are forecast to grow by 11%, further diversifying the job market.
Population Growth
Yukon’s population is anticipated to reach 50,000 by 2030, growing at an annual rate of 1.7%, significantly above the national average of 0.9%.
Sector-Specific Trends
Mining Sector: Temporary setbacks in output for 2024, but long-term prospects remain steady.
Tourism: Visitor numbers are expected to approach record levels by the end of 2024, providing a substantial boost to local businesses.
Consumer Spending: Moderation in inflation and potential interest rate cuts will enhance consumer confidence and spending.
Resilience Amid Short-Term Challenges
The Territorial Outlook Report highlights the resilience and adaptability of Yukon’s economy, emphasizing diversification as a key strength. Although the mining sector faces near-term pressures, other industries, such as tourism and non-residential investment, are expected to drive economic stability. Wage growth and a strong labour market further reinforce the territory’s positive outlook.
Government Initiatives and Support
The Government of Yukon continues to focus on:
Investments in Workforce Development: Collaborating with Indigenous, government, and post-secondary institutions to address labour market needs.
Sustainable Economic Policies: Prioritizing fiscal stability and affordability for Yukoners.
Encouraging Innovation: Supporting local businesses and individuals to advance new ideas and opportunities.
According to Premier Ranj Pillai, these strategies ensure Yukon’s economy remains robust and inclusive, benefiting both current and future generations.
Future Opportunities for Yukoners
The Conference Board of Canada’s forecasts present an optimistic outlook for Yukoners:
Expanding Job Market: With rising demand in key sectors, now is the time to upskill and prepare for emerging opportunities.
Increased Tourism: Businesses in the hospitality and retail sectors can expect a significant boost in activity.
Investment in Education and Health: The growing population will create opportunities for professionals in education, healthcare, and public services.
A Promising Horizon for Yukon
Despite minor setbacks in specific industries, Yukon’s economic forecast highlights resilience, diversification, and growth. With a strong labour market, increased investment, and government support, the territory is well-positioned to thrive in the coming years. Yukoners can look forward to a future of opportunities, wage growth, and sustainable development, making it a promising destination for workers and businesses alike.
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