ECONOMIC TRENDS & INDICATORS 10 Years in Review

OVERVIEW

This bulletin provides an overview of Lethbridge’s economic indicators in the areas of labour force, new business, business health, new developments and housing markets. Lethbridge’s steady, sustainable growth and relatively stable performance speaks to the industry diversity and strong public sector employers in this region. A healthy mix of businesses benefits our local economy, and industrial diversity fosters an environment that also creates potential for future enhancement and development opportunities.

For more information and data related to business and lifestyle in the Lethbridge area, visit www.chooselethbridge.ca or contact Heather McIntosh-Rivera at 403-331-0022.

ECONOMIC GROWTH

Lethbridge GDP LETHBRIDGE GDP BY SECTOR Points of Interest

The emerging Information and Cultural industry experienced the 100% Public Administration most noteworthy growth between 90% Personal Services 2012 and 2013 with a GDP increase 80% Business Services of 12.3% and employment growth at 100%. This sector experienced 70% Non-commercial Services the largest rate of increase of any 60% Finance, Insurance, Real Estate sector in Lethbridge. 50% Wholesale & Retail Trade

40% Information & Cultural Industries The wealth generating industries Transportation & Warehousing of Agriculture (within the Primary 30% category), Manufacturing, and Manufacturing 20% Construction continue to add to the Construction 10% economic growth experienced in Primary & Utilities the city. 0% 2008 2009 2010 2011 2012 2013

GDP MID-SIZED CITIES GDP Mid-Sized Cities Points of Interest

In Millions Medicine Hat Lethbridge Grande Prairie Red Deer Wood Buffalo Lethbridge’s GDP has remained $16,000 relatively stable since 2005, riding out the recession with incremental $14,000 change. $12,000 $10,000 Overall, Lethbridge’s GDP $8,000 increased by 1.2% in 2012, 1.8% $6,000 in 2013 and is expected to see modest growth in both 2014 and $4,000 2015. $2,000 $0 Gross Domestic Product (GDP) 2008 2009 2010 2011 2012 2013 estimates are used to measure the economic output of value-added production in a whole country or region, but can also measure the relative contribution of an industry sector. NEW BUSINESS

New Business Points of Interest NEW BUSINESS LICENSES ISSUED - Annually By Type On average there have been 340 new business licenses issued per Home Occupations Regular year over the past decade. 500 When looking at Regular (store- 407 387 front) business licenses, 2013 400 365 348 362 saw the least amount issued 316 324 314 of the past decade, while 2011 300 283 221 172 286 saw the highest number of new 153 167 214 businesses in Lethbridge in the 147 181 200 164 146 208 ten year period.

Business Licenses offer a useful 100 209 215 181 169 186 snapshot in evaluating the health 119 151 143 140 106 and prosperity of the local economy. 0 Economic growth and increasing 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 prosperity leads to an increased demand for services and, in turn, new businesses.

BUSINESS GROWTH

Building Permit Value LETHBRIDGE BUILDING PERMIT VALUE PER CAPITA MARKET SHARE Points of Interest Institutional Industrial Commercial Residential The value of permitted 100% construction was $138 million in $372 $504 $431 $321 $565 90% $227 $777 $889 $1,191 $613 2004 and $247 million in 2013, a $58 79% increase in ten years. 80% $326 $174 $173 $331 $317 70% $459 The building permit construction $243 $228 $532 values of $247 million reported 60% $474 $398 $520 $340 $105 $274 $315 in 2013 are the highest ever 50% $919 reported in Lethbridge in a single $526 $353 40% year. 30% $1,111 $1,179 $1,417 $1,336 $966 $1,034 $1,017 $818 $1,061 $931 When comparing the per capita 20% levels of total building permit 10% values among Alberta medium- 0% to-large centers, Lethbridge had 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 a very unique dip into and out of the recession, unlike Red Deer, Medicine Hat and Calgary that ANNUAL BPV PER CAPITA INVESTMENT COMPARISON have seen more fluctuations.

2008 2009 2010 2011 2012 2013 Investment in the construction of $6,000 new and revitalized buildings is a key $5,260 leading indicator that allows us to $5,000 $4,833 evaluate short term development and can provide insights into the state of the economy in the near future. $4,000

$2,506 $3,000 $2,675

$2,000 $1,744

$1,000

$0 Lethbridge Red Deer Calgary Edmonton Medicine Hat

BUSINESS HEALTH

Business Bankruptcies Points of Interest ANNUAL BUSINESS BANKRUPTCIES - MID-SIZED CITIES Lethbridge has seen very few Red Deer Lethbridge Medicine Hat Fort McMurray businesses claim bankruptcy in the past five years, 17 in total, 100 compared to the 142 of the 5-years previously.

75 In fact, in 2009, Lethbridge saw zero business bankruptcies and only two in 2013. 50

25

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

LABOUR FORCE

Labour Force UNEMPLOYMENT RATE - ANNUAL - ALBERTA COMPARISON Points of Interest

Edmonton Calgary Lethbridge started to shed jobs in 2009 like the other cities, but Red Deer Lethbridge-Medicine Hat that loss was not as severe or Wood Buffalo Alberta as quick as it was in the other 8% comparable centers.

Lethbridge has the most stable 6% population growth trend of all of the mid- to large-cities in Alberta. With the exception of the 3.8% 4.3% growth during the boom in 2007, 4% our population has grown about 1.5% to 2% per year.

2% Labour market data is an important 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 measure of the economy’s potential. The population and its rate of growth are used as the basis for infrastructure, ANNUAL POPULATION GROWTH - ALBERTA CITIES social supports and other municipal planning activities. Edmonton Calgary Red Deer Lethbridge Medicine Hat Fort McMurray 15%

10%

5%

0%

-5% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 HOUSING MARKETS

LETHBRIDGE NEW HOUSING STARTS New Housing Starts Points of Interest Multi Single 1,500 In 2013 there were 648 new housing starts in Lethbridge. 1,205 1,250 The softer housing starts since 285 981 2010 are a reflection of the 1,000 907 impact of the recession. In 820 768 766 221 770 766 Lethbridge, homes were still 750 295 660 648 being built in 2008 and 2009 266 136 when other Alberta cities were 242 216 275 108 109 already in the recession. 500 Lethbridge experienced 250 554 526 630 920 760 612 554 491 552 539 less fluctuation than some comparable markets. 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

AVERAGE NEW HOME PRICE Home Price Points of Interest Edmonton Calgary Red Deer Lethbridge Medicine Hat Fort McMurray $1,000,000 New home prices grew steadily over the past decade yet they remain the lowest of the medium $801,791 to large cities in Alberta at $750,000 $349,662 on average. This represents price growth of more $578,840 than $180,000 over the course of $500,000 $485,582 $477,325 the decade. $362,316 $349,662 Prices have remained stable $250,000 in the resale home market since 2007, when home prices adjusted to higher levels across $0 Alberta. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

The average resale price of a AVERAGE RESIDENTIAL RESALE PRICE home in Lethbridge last year was less than $250,000 as reported by the Canadian Real Estate Edmonton Calgary Red Deer Association. Lethbridge Medicine Hat Fort McMurray $750,000 Lethbridge remains one of the best value, affordable cities in $626,545 Alberta.

$500,000 The housing market is generally seen $436,621 as one of the first economic sectors to $343,768 rise or fall when economic conditions $295,987 improve or decline. $250,000 $265,038 $245,853

$0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013