REGINA...the most productive City in Canada. Article featured in the Regina Leader Post - Bruce Johnstone. Thursday, November 13, 2014. Regina may not be the biggest city in Canada in terms of economic output (The Big Smoke, Toronto, holds that distinction, accounting for 19 per cent of the countrys GDP). In fact, the Queen City ranked only 14th out of 33 cities surveyed by Statistics Canada. But, apparently, were the most productive city in Canada. Regina ranked first in terms of nominal gross domestic product (GDP) per capita at $65,404 in 2009 - the latest year for which data is available. Thats up sharply from fourth place in 2005 and sixth place in 2001 and ahead of heavy hitters like second-place Calgary at $61,246, sixth-place Saskatoon at $49,213 and seventh place Toronto at $46,763. So what exactly is GDP per capita? GDP per capita is a measure of the value of output per person living in a metropolitan area, said the study released this week by Statistics Canadas economic analysis division. While it is tempting to think of it as a measure of labour productivity (GDP per hour worked), this is only part of the picture, the study added. GDP per capita in a metropolitan area will be higher when labour productivity is higher; each worker, on average, works more hours; more workers are employed; or the working-age population is larger. GDP per capita reflects not only labour productivity, but also, labour market conditions and demographics. In other words, productivity - how much economic output each person produces - is a major factor in determining GDP per capita, but it isnt the only factor. Underlying economic and labour market conditions - whether the economy is booming, or the job market is tight - will also affect GDP per capita. The study also tells us something about the changes in our economy from 2001 to 2009, particularly the shift away from manufacturing centre Ontario and Quebec and toward resource-rich provinces, like Alberta and Saskatchewan. The study notes four cities in the top 10 in terms of GDP per capita in 2001 - Kitchener-Waterloo, Halifax, Windsor and Oshawa - were no longer in the top 10 by 2009, having been replaced by St. Johns, N.L., Saskatoon, Victoria and Vancouver. This pattern is consistent with a broad-based shift from manufacturing towards resource-based production ... For example, Saskatoon rose 14 places, from 20th to 6th, in terms of GDP per capita, and St. Johns rose 10 places, from 15th to 5th. Danny Leung, a spokesperson for Statistics Canada, said Reginas leading GDP per capita ranking is also partly to the increased value of products being produced in the city, namely oil and gas, manufactured goods and agricultural commodities. One of the reasons was that Regina had favourable price movements due to the commodity boom in the oil and gas sector. Secondly, ... manufacturing seems to have had strong growth, particularly in the second half in the decade (2005-2009). As home to the provinces largest petroleum refinery (Co-op Refinery Complex) and manufacturing plant (Evraz Steel), as well as a number of agricultural implement manufacturing, chemical and food processing plants, Regina has benefited from the rise of commodity prices in the 2000s. Regina is one (city) where there has been a shift toward the goods (producing) industries, particularly the more productive sectors of mining, oil and gas and manufacturing, Leung said. So thats worked in Reginas favour. But Doug Elliott, publisher of Sask Trends Monitor, said GDP per capita is not always an accurate measure of labour productivity. There are measurement problems here. What theyre doing is trying to measure GDP by looking at employment earnings and capital investment. And we do have very high earnings in Regina, and thats (in) the Crowns, and government, lots of full-time, well-paying jobs. Another problem is timing, as 2009 was tough year for Alberta with a huge plunge in oil prices from nearly $150 US per barrel in July 2008 to $30 US oil in early 2009. Alberta was in a slump in 2009. If they continue this (study) to 2012, I think well find out we may not be quite at the top of the pack anymore.
Posted on: Sun, 16 Nov 2014 14:42:40 +0000
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