Why Saskatchewan didn’t see an unemployment boom in 2009
In 2009, Canada saw an incredible jump in the number of unemployed persons.
The Canadian number distorts Alberta vs. Saskatchewan at the time, so here are the two isolated:
So, why didn’t this happen in Saskatchewan?
Well, at the time, companies like PotashCorp were spending a lot of money in Saskatchewan on expansion projects.
How much money?
PotashCorp alone spent the per capita equivalent of double the US economic stimulus package at the time, or triple the Canadian amount. They spent $5.8-billion in a province of 1-million people.
And, this $5.8-billion into a province of 1-million people was better than the other stimulus packages, since there was no bureaucracy in it – the money was actually spent – and there was no government debt attached to it! Making it the “the mother of all economic stimulus packages.”
Now, about the same time total potash royalties dropped, but since the expansions continued, Saskatchewan still saw massive the benefits.
At the time PotashCorp alone created 11,019 jobs during the peak of construction (direct, indirect, and induced), and there were also billions being spent by Mosaic, Agrium, and others.