The Economy

Whitehorse is the government centre for the Yukon, and government activities provide support and stability to the community. Whitehorse also has a diversified business sector which serves the entire Territory. In common with many other countries and areas in Canada, tourism to the Yukon and Whitehorse slowed after 2001. Over the long term, however, tourism is growing in importance to the Whitehorse economy. The community benefits both directly, from visiting tourists, and by providing the transportation and business base for tourism activities elsewhere in the Yukon. The community's large and increasingly stable population, together with the growth of tourism, has encouraged the development of other service industries. Employment in Whitehorse amounts to 73 percent of the Yukon total.

The Whitehorse economy still relies in part on the state of Yukon mining, and many of the businesses that provide services to the mining industry are headquartered in the city. When mining is in the doldrums, as it has been in the past few years, the Whitehorse economy shows signs of malaise, with increased unemployment and some population loss.

Government is the major single source of economic activity in Whitehorse, and the government services sector accounts for 20 percent of total employment. In smaller communities in the Yukon, the proportion of employment in government services may be a little larger but in Whitehorse the wide array of government activities encompasses most public services for the Territory. Other significant factors in the economy are education services, with 7 percent of employment, and health and social services, with 10 percent of employment. Health service is concentrated in Whitehorse, while the share in education is close to that elsewhere in the Yukon. The city's role as business centre for the Yukon is reflected in the strength of various business-oriented services. Professional services, including technical areas, provided 5 percent of employment. Finance, insurance and real estate stood at almost 4 percent. In comparison, the rest of the Yukon has far less than 2 percent of employment in these sectors. Other key services provided out of Whitehorse for the Territory are various utilities. Information and cultural industries provide 5 percent of total employment in Whitehorse.

Whitehorse has a far lower proportion of people working in the primary industries - especially mining, forestry, fishing and trapping - than the rest of the Yukon. There is, however, some agriculture employment around the Whitehorse area. Whitehorse people working in sectors such as mining and forestry are likely to provide services such as testing, rather than work in production. The accommodation and food services sector accounts for 8 percent of total Whitehorse employment. This is below the proportion found in the rest of the Yukon, where many communities rely heavily on tourism for jobs. Employment in retail and wholesale trade, however, at 15 percent of the total, is above the proportion found elsewhere in the Territory. Whitehorse is the supply centre for most Yukon communities, and people tend to buy many products, especially big-ticket items, directly from Whitehorse. Other services, including recreation activities, provide about 7 percent of employment, close to the proportion elsewhere in the Yukon.

Transportation is linked to business travel, tourism and other travel around the Yukon. It contributes about 4 percent of Whitehorse's total employment, about the same proportion as in the rest of the Yukon. Construction activity is variable, but in 2001 provided about 7 percent of employment in the Whitehorse area.