SASKATOON, SASKATCHEWAN – Today, the Saskatoon Regional Economic Development Authority (SREDA) released an Economic Diversity Report for the Saskatoon region.
Although the term, ‘diversified economy’ is commonly used when referring to the Saskatoon region, rarely is it clearly defined or measured. SREDA has taken an in-depth look at what it means to be a diversified economy, and has measured this diversification through the use of regional economic indicators including employment and GDP. As a second step in this analysis, SREDA has used the results of these calculations and compared them to other Canadian cities.
“This is the first-time SREDA has analysed the economic diversity of the Saskatoon region,” said Alex Fallon, President and CEO of SREDA. “The findings indicate that the Saskatoon region economy is indeed highly diversified. This diversification should help provide stability for the local economy in times of economic transition, such as the one currently impacting the prairie provinces.”
Fallon added; “a highly diversified economy is not the ultimate silver bullet to deflect slowdowns in economic growth, but less diversified economies are more prone to significant downward adjustments in challenging economic times.”
The report outlines three measurements for diversification: sectorial GDP contribution, sectorial employment distribution and the Herfindahl Index. The analysis results indicate a highly diversified economy, with the diversity index based on sectorial GDP contribution at 87 percent, sectorial employment distribution as strong, and Saskatoon’s economic diversity Herfindahl Index at 0.095. The Herfindahl Index is widely used in measuring market concentration in industrial organizations as well as economic diversity. The index indicates the extent to which a local economy is dominated by a few firms or sectors. When compared to other regions of similar size, the Saskatoon region was found to be more diversified than most.
“The Chamber has always been involved with the different sectors in Saskatoon. SREDA’s Economic Diversity Report findings highlight the diversity of Saskatoon, which contributes to our strong business community,” said Kent Smith-Windsor, Executive Director of The Greater Saskatoon Chamber of Commerce.
As a follow up to this analysis, SREDA will continue to monitor changes in the diversity results to ensure the Saskatoon region continues to demonstrate this strong showing in the future.
“SREDA is currently working on a number of initiatives to support economic diversification for years to come. These initiatives include attracting new businesses to the region, helping local companies grow, supporting new entrepreneurs and supporting economic development projects in multiple sectors,” said Fallon.
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The Saskatoon Regional Economic Development Authority (SREDA) helps grow the local economy by providing programs and services in the areas of business attraction, retention and expansion; entrepreneurship support; regional planning; and marketing the Saskatoon region. For more information, visit SREDA.com.