The economy in Whitehorse is sustained to a large extent by government activities, and employment in various government sectors provides long-term jobs and good incomes.
Mining still has the potential to be a major influence on the economic health of the Yukon and Whitehorse.There are mines at various stages of development in the Yukon, but all are waiting for higher prices. Exploration activity has plummeted in the past few years, although the territory is starting to see an increase in exploration for gold and base metals. Some exploration work is being done at three gold-silver deposits in the Mount Skookum area, south of Whitehorse. The Yukon is generally considered under-explored for most minerals. Yukon mines developed to date have tended to be high cost and, therefore, vulnerable when mineral prices decline. Mining recovery and growth would certainly boost the Whitehorse economy.
Whitehorse tends to have more stable work and lower unemployment than elsewhere in the Yukon. Nevertheless, there is still a need for economic growth and job growth. The drive for diversification in the Whitehorse economy comes from a young workforce, high unemployment for both young people and First Nations people, and an effort to reduce the dependence on the mining industry because of its repeated downturns.
Tourism is one area that has shown considerable growth in the Yukon over the long term. Although the number of tourists declined from 2002-2003, tourism is still an important part of the Whitehorse economy. The longer-term growth of tourism in the Yukon and Whitehorse is reflected not only in the numbers of tourists coming for traditional summer tourism but also in the types of activities available. Many tourism activities emphasize the adventure and wilderness potential of the Yukon and the tourism season is extended by winter tourism activities. Although the number of tourists coming from the United States was down a little in the past two years, tourism from the U.S. remains the largest single source for Whitehorse and the Yukon. Increasing numbers of tourists are coming to the Yukon from Europe and other parts of the world. This provides more potential for job growth in Whitehorse as the transportation and service centre for Yukon-wide tourism.
Yukon First Nations have been increasing their economic development activities. Dana Naye Ventures is a lending agent for First Nations businesses in tourism and other fields. In addition to the many individual First Nations people who own and operate small businesses, First Nations consortiums have invested in businesses as diverse as major hotels, office buildings, and a window-manufacturing company. Members of the Yukon First Nations Tourism Association emphasize tourism as a source of economic and job growth and a number of First Nations tourism businesses operate out of Whitehorse. These include retail, arts and crafts, outfitting and adventure, and air or helicopter services.
The Yukon Government has encouraged the development of a film industry, largely based in Whitehorse. Training and support for northern productions come from several sources. At a wider level, new communications technology allows a relatively remote centre like Whitehorse to develop economic activities that rely on the skills and knowledge of the workforce rather than on physical location. Northern Native Broadcasting operates a radio station in Whitehorse, produces television documentaries and makes custom videos for clients. The cultural labour force, which employs almost as many people as health care occupations, is a growth area in the Yukon economy.
