Study suggests Regina’s economy is on the rebound

A new study is giving Regina’s economy a passing grade.

“I’d say it’s a B with room for improvement,” David Froh, the vice-president of Economic Development Regina Inc., said Tuesday. “But all the signs say that we might expect an A within a few months.”

Regina’s Economic Report Card for August was released by Economic Development Regina, Praxis Consulting and SJ Research Services.

According to Froh, if Regina focuses on things like infrastructure, investment in education and creating opportunities for young people, the city can get that A.

In the meantime, it’s in good shape — thanks largely to a burgeoning population.

The number of Reginans grew by more than two per cent from the previous year, but employment kept pace. The year-over-year unemployment rate dropped from 5.8 per cent in July of 2018 to 4.8 per cent in July of 2019.

“Young people and new Canadians are moving to our community because there’s opportunity — and there’s opportunity in Regina because we still are arguably the best place in Canada to get a job and afford a great quality of life …,” Froh said.

“We see our population growth rate triple our 20-year average, more jobs and a lower unemployment rate and that’s all thanks to a strong and diversified economy.”

Employment was up in areas such as agriculture, resource extraction, and accommodation and food services, but there were fewer people working in sectors like manufacturing, wholesale/retail, and professional, scientific and technical services.

The study also showed significant decreases in some areas of construction.

In June of 2018, there were 725 housing starts in the city. One year later, there were only 265.

The value of building permits year to date also has dropped and the construction employment rate in July was down by 1,400 jobs from the same period in 2018.

Froh noted the housing industry is playing catch-up as it absorbs what he called “a heck of a lot of inventory that came on over the past number of years.”

“The construction industry is a big part of this economy but it tends to ebb and flow with large investments in this city and the broader economy,” he continued. “The housing industry (faces) some challenges for sure, but I would isolate that from the broader conversation on the economy.”

In Froh’s mind, the biggest indicator is the city’s gross domestic product. The Conference Board of Canada predicts Regina’s GDP will grow by 2.3 per cent in 2019, more than twice the 0.8-per-cent increase posted in 2018.

“What we’re seeing is an economy that’s rebounding and growing,” Froh said, “so the lull we experienced over the last couple of years is over and I think we can expect continued growth …

“(The GDP growth) is a reflection of people moving here, it’s a reflection in investment, it’s a reflection of the products that we make being in demand around the world, and it’s a reflection of a diversified economy.”

Regina’s economy recently benefited by playing host to two Garth Brooks concerts and the city is staging other events in 2019, including the NHL’s Heritage Classic and WHL’s Prairie Classic outdoor games.

Froh noted such events are important economic stimuli for a city, but they’re also an opportunity to enhance the city’s brand.

That’s good news for Mayor Michael Fougere, who told The Greg Morgan Morning Show on Tuesday that he’s confident about the city’s economy.

“Yeah, there’s cross-currents of problems around Canada (and) around the world, but in Saskatchewan and in Regina, we’re doing OK,” Fougere said.