Measure Description

The Edmonton Economic Diversity Index measures the diversity of Edmonton’s economy by comparing the city’s employment share by sector to that of Canada’s. The result of this measure is calculated based on the City’s Municipal Census question - Economic Diversity. The question gauges Edmontonians’ employment by sector, based on the North American Industry Classification System. As the City has limited control over employment and the labour market, this index is considered an indicator.

Measure Importance

A more diverse economy would help Edmonton withstand the “boom and bust” cycles of an energy-based economy by showing growth in new, underperforming and high potential sectors. The measure will help monitor the resiliency of Edmonton’s economy and gauge progress on efforts to:

  • Grow Edmonton’s industrial sectors
  • Support startups and entrepreneurship
  • Catalyze commercial economic development
  • Support small business
  • Improve service to the business community

Historical Data

Data sources: Statistics Canada, Table 282-0008 - Labour force surveyestimates (LFS) by North American Industry Classification System (NAICS)

Explanation of Performance

According to the Winter 2018 Metropolitan Outlook 1 by the Conference Board of Canada, the 2017 Economic Diversity Index for Edmonton CMA is 0.89, which is a slight increase from 2016.

In 2016, employment in the goods sector decreased, but increased in the service, wholesale and retail sectors. In 2017, this resulted in increased consumer spending. Manufacturing, primary and utilities, and construction sectors were impacted the most during the economic downturn through 2016, but with the modest recent increase in oil prices, these sectors had positive gains in 2017. The overall impact is the increase to 0.89 for 2017.
The City of Edmonton focuses on innovation and stimulating new and emerging sectors such as health care, agribusiness, cannabis, information and communication technology to help diversify Edmonton’s economy. Through Edmonton Economic Development Corporation, the City of Edmonton has supported technology and business innovation and entrepreneurship.

Useful Links

For information about the City's strategic plan, The Way Ahead: http://www.edmonton.ca/city_government/city_vision_and_strategic_plan/the-way-ahead.aspx