Study confirms link between Saskatchewan employment growth and commodity prices

A recent study by the Canadian Centre for Policy Alternatives of employment growth in Saskatchewan confirmed that the key factor was commodity prices.

This is a reminder of why many are concerned about Canada becoming overly reliant on the natural resource sector.

Natural resource prices are subject to dramatic fluctuations – and there is little Canadian governments can do to control that. For example, the breakup of a Russian potash marketing group is expected to lead to a significant drop in the price of potash.

Relying on natural resources leaves the economy vulnerable to a boom-bust cycle. With a modern industrial strategy, we have the tools to reduce the impact of boom and bust through taking a long-term approach to natural resource development and ensuring we don't become overly reliant on one sector.