2026 Spring Economic Update

As we move into 2026, the global economy continues to face uncertainty and rising geopolitical tensions. Despite these challenges, the Saskatoon Region continues to show resilience with steady GDP expansion, a fundamentally strong labour market, and targeted immigration strategies to maintain key labour performance. This update highlights the trends and opportunities shaping the Saskatoon Region’s evolving outlook.

Key Takeaways:

  • Stabilized Yet Resilient Growth: GDP is projected to grow 2.0% by the end of Q1 2026, a slight deceleration from previous quarters. This deceleration is not a result of significant contractions in any sector, but rather a stabilization following the intense growth of the post-pandemic recovery period.
  • Labour Dynamics and Market Normalization: The Saskatoon Region’s labour market remains fundamentally strong and well-supplied, but is showing early signs of loosening. Unemployment shot up to 5.9%, with participation remaining high. Immigration policy changes are helping shield key sectors from softening, however skilled labour access remains a concern.
  • Housing Market Trends and Affordability: Housing supply is increasing modestly, with months of supply rising to 2.62 and days on market extending to 44. Sales have slowed, but prices remain high due to construction cost pressures. The market is showing early signs of loosening, yet affordability challenges persist for buyers and builders alike.
  • Export Challenges and Shifts: Saskatchewan exports faced significant declines in key sectors such as transportation equipment, metals, and energy products, largely due to U.S. and China trade pressures. However, strong gains in minerals and consumer goods, and key commodity prices are cushioning overall economic impact, emphasizing the Region’s diversified trade.
  • Investment Momentum Amid Cautious Spending: Consumer spending remains restrained, reflecting cautious sentiment, however, construction and development activity continues to grow. Industrial, commercial, and residential permits all indicate strong forward-looking investment, supporting long-term growth despite short-term softness in spending.
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