Economic Foundations Still Strong.

Employment

* In June 2001, the unemployment rate was 5.3 per cent, up from 5.2 per cent in June of last year. This was the third lowest unemployment rate in the country and below the national rate of 6.7 per cent.

* A survey conducted in May 2001 by Manpower Temporary Services, a multinational staffing company, indicated that Saskatchewan's employers are optimistic about the July to September 2001 period. Of the employers surveyed, 94 per cent in Saskatoon, and 93 per cent in Regina expect staffing levels to increase or stay the same during that period.

* A report developed by People Patterns Consulting revealed that Saskatchewan experienced strong growth in non-agriculture employment outside the two major cities from 1987 to 2000. Non-agriculture employment in the province (excluding Regina and Saskatoon) increased from 179,100 in 1987 to 206,000 in 2000. This represents an increase of 26,900 jobs or 15 per cent.

Mining, Manufacturing and Retail Sales

* On a year-to-date basis (January to April 2001), Saskatchewan's manufacturing shipments increased by 1.9 per cent to $2.4 billion, compared to the same period the previous year. For 2000, manufacturing shipments increased by 16.3 per cent to over $7.1 billion, compared to 1999.

* Department stores in the province saw their sales increase by 10.4 per cent to $57.3 million in May 2001, compared to May 2000. On a year-to-date basis (Jan-May 2001), department store sales totaled $239.5 million, an increase of 10 per cent from the same period the previous year.

* New motor vehicle sales in April 2001 increased by 1.7 per cent to 3,382 units, compared to April 2000. Year-to-date (Jan-April 2001) new motor vehicle sales increased by 1.8 per cent to 11,393 units, compared to the same period in 2000.

* In April 2001, Saskatchewan's production of other minerals (i.e. coal, gold and other base metals excluding potash) increased by 15.2 per cent to 881 million kilograms, compared to April 2000. Production during the first four months of 2001 increased by 6.3 per cent to 4 billion kilograms, compared to the same period in 2000.

Other Indicators

* New business incorporations in the province during April 2001 increased by 4.7 per cent to 244, compared to last year. On a year-to-date basis, new business incorporations increased by 4.0 per cent to 969, compared to 2000.

* In May 2001, Saskatchewan's value of building permits issued for construction totaled $73.3 million, an increase of 10.6 per cent, compared to May 2000.

* Statistics Canada estimates that new capital spending by public and private organizations in Saskatchewan is expected to reach $6.2 billion this year. This will mark the fifth consecutive year in which capital spending will exceed $6 billion