Ottawa - Economy

Economy

Ottawa's primary employers are the Public Service of Canada and the high-tech industry. The city has a high standard of living and low unemployment. Ottawa had the fourth highest growth rate among major Canadian cities in 2007 with a 2.7% GDP growth rate, which exceeded the Canadian average of 2.4%. It is estimated that the National Capital Region attracts around seven million tourists annually who spend about 1.3 billion dollars.

The region of Ottawa-Gatineau has the third highest income of all major Canadian cities. The average gross income in the region amounted to $40,078, an increase of 4.9% compared to the previous year. The annual cost of living rate in 2007 was 1.9%.

The Federal government is the city's largest employer, employing over 110,000 individuals from the National Capital region. Ottawa is also an important technology centre; its 1800 companies employ approximately 80,000 people. The concentration of companies in this industry earned the city the nickname of "Silicon Valley North." Most of these companies specialize in telecommunications, software development and environmental technology. Large technology companies such as Nortel, Corel, Mitel, Cognos and JDS Uniphase were founded in the city. Ottawa also has regional locations for 3M, Adobe Systems, Bell Canada, IBM, Alcatel-Lucent and Hewlett-Packard. Many of the telecommunications and new technology are located in the western part of the city (formerly Kanata).

Another major employer is the health sector, which employs over 18,000 people. Nordion, i-Stat as well as the National Research Council of Canada and OHRI are part of the growing life science sector. Business, finance, administration, and sales and service occupations rank high among types of occupations. Approximately ten percent of Ottawa's GDP is derived from finance, insurance, real estate whereas employment is in goods-producing industries is only half the national average. The City of Ottawa is the second largest employer with over 15,000 employees.

In 2006, Ottawa experienced an increase of 40,000 jobs over 2001 with a five-year average growth that was relative slower than in the late 1990s. While the number of employees in the federal government stagnated, the high-technology industry grew by 2.4%. The overall growth of jobs in Ottawa-Gatineau was 1.3% compared to the previous year, down to sixth place among Canada's largest cities. The unemployment rate in Ottawa-Gatineau was 5.2% (only in Ottawa: 5.1%), which was below the national average of 6.0%. The economic downturn resulted in an increase in the unemployment rate between April 2008 and April 2009 from 4.7 to 6.3%. In the province, however, this rate increased over the same period from 6.4 to 9.1%.