Economic development in the Yukon has been closely linked to mining for more than a century. The economy has boomed or declined, according to the mining industry's cycles. Other factors are now reducing the Yukon's dependence on mining. Government, First Nations land claims agreements, and tourism all have an impact on the economy. Oil and gas development, forestry, and agriculture are currently experiencing more activity than mining, but they remain smaller areas for employment.
Employment in the Yukon declined from 1998 to 2001, a response to the closure of the mine at Faro. This was reflected in the 2001 Census, which showed an unemployment rate for the Yukon of 11.6 percent compared to a Canada-wide rate of 7.4 percent. Since 2001, however, employment in the Yukon has seen a significant turnaround. From April 2003 to April 2004 the number of employed Yukoners increased by 1,200 (just over 9 percent). Unemployment in the Yukon has also dropped considerably since 2001. In the past year alone the number of unemployed people has declined by 500, or 35 percent. In April 2004 the Yukon unemployment rate, at 6.0 percent, moved below the Canadian rate of 7.3 percent.
Government activity and employment are major supports to the Yukon economy. Territorial, federal, municipal, and First Nations governments create jobs, as do health care, education, and social services, all of which are run by governments. In 2003, governments employed close to 5,000 people, just under a third of all those employed in the Yukon.
Land claims agreements and First Nations self-governance are already having a major effect on government and work. A large number of people across the Yukon are involved in negotiating and implementing agreements. These agreements hold even greater economic promise for the future, especially for First Nations members.
First Nations economic development should boost employment, particularly in areas like resource management and tourism. Both economic development and the provision of social and other services by First Nations governments will create jobs in smaller communities. Knowledgeable and highly skilled workers will be much in demand, especially in fields like technical resource occupations, financial and other management, social and health services, and other service occupations.
Tourism increased considerably during the 1990s but was affected - as tourism all over the world has been -by the terrorist attacks in 2001. In 2004 tourism seems to be returning to its long-term trend of continued growth. Tourism now provides a significant number of jobs in fields like accommodation and food services, recreation, transportation, and retail trade. Much tourism is seasonal, based on traffic along the Alaska Highway, but there has been growth in activities that broaden the client base and extend the tourist season. Cultural activities, partly linked to tourism, also provide at least part- year income for many people in the Yukon.
The Canadian dollar is still low enough to attract European, American, and other tourists. The Yukon is also viewed as a safe location for holidays, especially in this time of security consciousness. Growing interest in wilderness tourism and ecotourism has also brought dollars and jobs into the Territory. Yukon tourism now offers summer and winter attractions, a wide variety of wilderness activities, and an increasing level of quality and professionalism. Further growth in the industry is likely to come from First Nations tourism development and from even stronger interest in the Yukon's wilderness and scenic beauty.
In the late 1990s to 2001 the Yukon mining sector declined massively, like most mining around the world. The Yukon economy suffered from lost mining jobs, reduced exploration spending, and the departure of former mine workers. While the industry has not yet recovered, higher mineral prices are leading to more exploration.
Mining still has the potential to provide economic growth for the Territory in the longer term. The Yukon's mineral resources are expected to again attract attention but the Territory does remain a high cost area for production. New mines won't be quite like the old ones: the industry worldwide has been forced to reduce costs and increase productivity. New mines, in the Yukon and elsewhere, will employ fewer and more highly-skilled people than in the past.
There are many positive indicators for the Yukon's economic future. The Territory has a stable population base and skilled, well-educated workers. The settling of land claims is opening up new economic opportunities. First Nations self-government is creating local jobs. Tourism and new resource-based industries are providing diversity. The considerable number of business start-ups in professional, scientific and technical fields further emphasises how the Yukon economy is expanding and diversifying. The recovery of the world mining industry, and the Yukon's mining sector along with it, can only continue to strengthen the Territory's economic picture.
