CALGARY — The Oxford Economics' Global Cities Index report lists the City of Edmonton as an "emerging star" in North America, along with Boise ID, Durham NC, Jacksonville FL, and San Antonio, TX.
“These cities each have distinct strengths but are united by their productivity-led growth, an ability to move up the value chain, and their increasing strength in attracting innovative businesses and the highest-skilled workers,” said Liam Sides, a director at Oxford Economics, and lead author of the report.
Oxford evaluates the economies, populations, quality of life, governance and environment of 1,000 cities world-wide every year and this year introduced the ‘cities to watch list.’ Cities making the list are "forging independent growth paths that key stakeholders and policymakers can no longer afford to ignore," says the report.
"Edmonton, Canada’s fifth-largest city, is best known for its role in the country’s significant oil and gas industry," it adds. "And while its economic fortunes have long been tied to the performance of this volatile sector, the city is in the process of diversifying its economy to support more sustainable, long-term growth."
The city has one of the fastest growing urban economies in North America, showing strong gains in GDP, employment, and population.
"In fact, over the next five years, Edmonton’s employment and population will grow at the second fastest rate of any city in the US and Canada, as high-paying jobs in the business services and oil sectors continue to attract young workers from across Canada," says the report. "As Alberta’s capital and home to the University of Alberta, Edmonton also benefits from a substantial public sector and research base that is helping underpin greater diversification and support strong growth in the business services sector of the economy."
The strong economic basics should result in a fast rate of increasing disposable incomes in the city, which already boasts incomes higher than the national average, boosting domestic spending.
Demographically, the growing population, due to recent high levels of interprovincial in-migration of working-age adults, is keeping Edmonton's age profile younger than most other cities in North America.
"This supports the city’s cultural vibrancy: It hosts various food and cultural festivals year-round, earning the nickname ‘Canada’s Festival City’," says the report. "A consequence of the rapid population growth across Canadian cities in recent years has been housing affordability falling to record lows, as housing supply has been unable to keep up with new demand in many metros."
"However, Edmonton remains more affordable than many of Canada’s other major cities. This is another key driver supporting the city’s growth, as newcomers are attracted to the relatively lower cost of living."
The expansion of the Trans Mountain Pipeline to transport more oil to the Port of Vancouver and proposed carbon capture projects by Alberta-based oil producers, suggest the city remains firmly invested in the future of fossil fuels," said the report. "But as the world transitions to more sustainable energy sources, the city is well positioned to leverage its increasing dynamism for long-term growth."
The report notes Edmonton will likely make “significant gains in the Global Cities Index in the coming decade, making it a key city to watch in North America."
Edmonton ranked 125th in the overall ranking of 1,000 cities, with only four Canadian cities making the top 100: Toronto ranked 20, Vancouver, 24, Montreal, 62, and Calgary, 69.