Several sectors of Regina’s economy will lose jobs this year, according to recent research on economic trends for 2023 done by the Conference Board of Canada.
Retail and wholesale trade, manufacturing, finance, insurance, and real estate are the main sectors the research suggested would lose jobs.
According to the research, retail outlets will not require as much staff because of lower sales due to a weaker economy in Regina. As well, less activity in the housing sector will lower the need for staff in real estate.
Regina’s wholesale and retail trade sector will decline by close to two per cent in 2023. Because of a decline in growth per capita income, residents will have less spending money to use in the retail sector.
Manufacturing employment loss is due to higher interest rates, lowering the need to take on additional workers, according to the study.
The employment outlook for several sectors in Regina. (Photo source: Conference Board of Canada)
Alternatively, some jobs and businesses in the Queen City linked to the resource sector, such as potash, uranium, and oil, will see a need for more employees after a rise in demand. There is a similar trend taking place in Saskatoon, the research outlined.
The fastest growing sector in 2023 will be transportation and warehousing, with growth expected to remain solid over the next few years.
Healthcare and social services will also drive Regina’s economy, the study said.
Employment in the utilities sector went up by more than 30 per cent in 2022, and a gain of 7.3 per cent is expected in 2023.
EMPLOYMENT RATE
In all sectors, employment in Regina increased by 1.7 per cent in 2022. The Conference Board of Canada says overall job growth will slip to 0.4 per cent in 2023, but will pick back up to 2.1 per cent in 2024.
At the beginning of the pandemic in 2020, Regina’s restaurants, bars, and hotels had initial job losses of more than 44 per cent but have since picked up with the reopening of Regina’s economy post COVID-19.
The research suggests the employment levels in this sector should return to pre-pandemic levels in 2023.
UNEMPLOYMENT RATE
Regina’s unemployment rate rose to 8.3 per cent in 2020 and is forecast to drop to 4.9 per cent for 2023 and 2024.
The rate is estimated to average around 4.7 per cent until 2027.
According to the research, the low rate will help Regina’s economy but is partially due to weak growth in the labour force due to an aging population and labour shortages.
ECONOMIC TRENDS
The city’s economy expanded by about five per cent in 2022 following the end of public health restrictions.
Inflation in Regina is expected to slow from 6.5 per cent in 2022 to 3.6 per cent in 2023.
The province’s economy will expand at a faster pace than other provinces. This growth could be behind the above average population growth anticipated in Regina, the research showed.
Regina’s population is expected to grow 2.3 per cent in 2023.
