As of September 2022, the Yukon has a population of 44,160. The territory has grown at an annualized rate of 1.8% over the past five years (to 2022), the second highest growth rate in the country. The majority of the Yukon's population is located around the capital city of Whitehorse in the southern part of the territory. The city alone accounts for almost 80% of the territory's total population. It hosted the Canada Winter Games in 2007 and the Arctic Winter Games in 2012, two major sporting events that attract the best athletes in the country.
The Yukon is the smallest of the three Canadian territories in terms of area. It is located in the northwest of the country, above the Arctic Circle. The territory's name comes from the translation of the word "great river" in the Gwich'in Aboriginal language. Approximately one-quarter of Yukon residents are of Aboriginal descent and it is home to fourteen First Nations, speaking eight different languages. The Yukon's population is also very multicultural, with residents coming from all over the world. Immigrants come to the region to take advantage of economic opportunities, particularly in the mining sector. To attract new immigrants, the Yukon government has a territorial immigration application program for business people wishing to settle in the Yukon. wishing to settle in the Yukon.
Theshare of Francophones in the Yukon population is about 10%. TheAssociation Franco-Yukonnaise (AFY) supports the interests of Francophones in the Yukon. Its mission is to contribute to the economic vitality of the Franco-Yukon community by intervening in the areas of tourism, immigration, youth and local economic development.
As a territory, the Yukon government has more limited jurisdiction than its provincial counterparts in the Canadian Confederation. It has elected representation in both houses of the country's federal Parliament as well as in its own democratically elected Parliament. There are 18 representatives in the Yukon Legislative Assembly, located in its capital city of Whitehorse. The territory is led by Premier Ranj Pillai, who was elected to a second term in April 2021.
The Yukon's gross domestic product (GDP) in 2022 was C$3.1 billion, with growth of 4.1% over the past five years (to 2022). The growth of Yukon's GDP and the territory's economy in general is very much tied to the performance of its mining sector. In 2020, mining accounted for 12.2%, construction for 9.7% and tourism for 2.2% of Yukon's GDP. GDP from mining accounted for 12.2% of Yukon's GDP in 2020, compared to 10.6% in 2018.
Based on mining-related revenues reported by Yukon businesses, the total GDP attributable to mining was $359.5 million in 2020.
The Yukon's economy is largely based on its rich natural resources. The largest revenue-generating industries in the Yukon are gold and silver mining, copper, nickel, lead and zinc mining, and gasoline and bulk petroleum stations, which generated $3.9 billion, $2.2 billion and $369.1 million respectively in 2022.
The importance of mining in the Yukon can be traced back to the late 19th century, when a major gold discovery led to the Klondike Gold Rush, which saw between 30,000 and 40,000 people arrive in the territory in just a few months. This event triggered the creation of the territory itself. The climate of most of the Yukon is subarctic, characterized by long, cold winters, which constrains the conditions for exploration and mining.
Since the late 19th century, mining has been the most important extractive industry in the Yukon, although market fluctuations can lead to wide variations in production. Mineral resources are varied and include deposits of combined silver-lead and lead-zinc ores and copper, coal, iron, and some oil and natural gas. Mining investors wishing to establish themselves in the territory can take advantage of the Yukon Mineral Exploration Program (YMEP ) offered by the Yukon government.
Gold mining remains an important economic sector with open pit mines. The Yukon also has the second largest iron ore deposit in the world.
Rivers and lakes offer many opportunities for hydroelectric power generation. The utility, Yukon Energy, operates three hydroelectric generating stations (Whitehorse on the Yukon River, Aishihik Lake in the southwestern Yukon, and Mayo in the central Yukon) with a combined capacity of 75 MWh of electricity. Their energy production meets almost all the needs of consumers in the territory. Some remote communities rely on diesel generators. Wind and solar power sources are also being developed.
The Yukon economy has become increasingly diversified and tourism now provides a significant share of Yukon jobs and services. Businesses attributed $146.2 million of their gross revenues in 2020 to tourism. Based on tourism revenues reported by Yukon businesses, the total GDP attributable to tourism was $63.7 million in 2020.
Tourism is a rapidly expanding sector and a pillar of the local economy , generating stable economic revenues for the territory. It is one of the largest private sector employers. Wilderness tourism, which includes activities such as guided river trips, hiking and horseback riding, is a large part of Yukon's appeal to tourists, and a number of protected areas have been established. The Yukon Territory is largely uninhabited, has significant topography and is home toCanada's highest peak Mount LoganLogan, at 5,959 metres, and eight territorial parks , including the two national parks Ivvavik and Vuntut, located in the northwestern part of the territory.
The Yukon Territory employed 34,125 people in 2022. Employment grew at an annualized rate of 2.8 percent over the five years to 2022, which is below the national average of 3.4 percent. Major employment sectors include retail trade, mining, and health care/social assistance, which employed 10,428, 5,769, and 2,950 people, respectively, in 2022. Much of the work is done on a seasonal basis and standard weekly wages exceed the Canadian average. In addition, the Yukon does not have a territorial sales tax.
Forest resources are limited, but commercial logging occurs in some southern areas. Small sawmills produce some of the wood needed for local construction, lumber extraction, and fuel, although imported fuel oil replaces both wood and locally mined coal as the primary fuel.
Public administration is the first major source of employment and economic activity after natural resources.
In 2021, the Construction and Professional, Scientific and Technical Services sectors together accounted for about one-third (32.4%) of all businesses in the Yukon. Retail trade, construction, and accommodation and food services accounted for (41.6%) of private sector employment.
With 2,468 workers (employees and business owners actively working in their businesses), the retail trade sector was the largest private sector employer in 2021, followed by construction (1,929) and accommodation and food services (1,643). These three sectors together accounted for 41.6 percent of all private sector employment. Among industries, information and cultural industries had the highest proportion of full-time employees at 88.3 percent. Retail trade had the highest proportion of part-time employees (38.7%), while health care and social assistance had the highest proportion of casual/temporary employees (15.8%).
Construction businesses reported total revenues of $609.4 million, representing 16% of all Yukon business gross revenues in 2020. Gross revenues attributed to construction by all Yukon businesses, including construction firms, totalled $613 million in 2020.
The industry sector with the highest revenues attributed to construction, in addition to construction itself ($363.2 million), was real estate and rental. Total gross revenues for real estate and leasing in 2020 were $511.8 million CAD, of which $87.7 million (17.1%) was attributed to construction.
Based on the collected construction-related revenues reported by Yukon businesses, the total GDP attributable to construction was $286.1 million in 2020. GDP attributable to construction accounted for 9.7% of Yukon's GDP in 2020, compared to 12.9% in 2018. Gross revenues attributed to mining by Yukon businesses, including mining companies, totalled $646.1 million in 2020.
Rich in mineral and metal resources and with a well-developed infrastructure, the Yukon is a more attractive destination for investment. The Comprehensive Economic and Trade Agreement (CETA) is a free trade agreement between Canada and the European Union (EU) that covers virtually all sectors and aspects of trade between Canada and the EU. For service providers, CETA provides the best market access the EU has ever agreed to in a free trade agreement. CETA also helps create jobs for the middle class, strengthens the economic relationship with the EU, and boosts trade between Canada and the EU, which is the second largest market in the world, with over 500 million consumers and a GDP of $22 trillion. CETA also stimulates investment by providing Canadian and EU investors with greater certainty, transparency and protection for their investments. Under CETA, companies operating in the Yukon enjoy guaranteed preferential access to EU and North American markets. Yukon's strength sectors, including mining and exploration, oil and gas, and innovation and technology, benefit especially from the investment provisions of CETA. There are other benefits for businesses, including with respect to tariffs. Indeed, from the first day of its provisional application, CETA immediately eliminated all tariffs on exports of metals, mineral products and mining equipment from the territory, which will promote the competitiveness of these products on the European market. The EU is the world's largest importer of metals and minerals and its consumption has grown rapidly over the past decade. The Yukon extractive industry benefits from preferential access to provide technical and advisory services in the EU. Yukon service providers are on a level playing field with their EU competitors and are treated better than most of their competitors outside the EU.
The CETA's labour mobility provisions make it easier for highly skilled mining and energy professionals to do business in the EU, such as attending meetings, negotiating sales and providing engineering and technical consulting services.