First of its kind report from Calgary Economic Development benchmarks $1.5 billion Indigenous economy

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Unlocking the potential of Calgary’s Indigenous economy has been difficult, as data specific to Calgary that can direct policy makers towards strong decisions has been scarce.

An Indigenous Economic Contribution Study report commissioned by Calgary Economic Development and the City of Calgary, which was released on Dec. 12, now fills in many of those data gaps.

For the first time, the size of Calgary’s Indigenous economy has a dollar figure: $1.5 billion, or approximately 1.2 per cent of Calgary’s total GDP.

“What this report really made us realize, and what I’ve really learned on my personal journey on towards reconciliation and really working with indigenous peoples and communities and nations, is that data is incredibly hard to come by,” said Kate Koplovich, Director Strategy for Calgary Economic Development.

“I’ve spoken to nations who say that they don’t have data on the number of businesses in their communities. They don’t have data on, what their own GDP is. Having a report out, like this, that provides them with that baseline to say, ‘hey, at least I know what the Treaty Seven region economic picture looks like,’ it’s really one step towards having more data availability.”

Part of the difficulty in producing a report like the Indigenous Economic Contribution Study, said Koplovich, was the number of sources required to paint a fulsome picture of economic activity—sources that included First Nations financial reports, Statistics Canada data, information from the Canada Revenue Agency, Canadian Council for Aboriginal Business, and the Government of Alberta.

“We can say, from an evidence-based perspective, here’s where we stand today. Absolutely, our intention is to track progress by updating these numbers,” Koplovich said.

“What I’ve heard from nations is this report is really helping to de-stigmatize and erase discrimination and stigma against indigenous communities, by really recognizing that they have an incredibly important role to play in our economy.”

Report covers all levels of Indigenous economy

The scope of the report covered the Indigenous households, Indigenous governments, and Indigenous-owned businesses, including First Nation and Métis economic development corporations in Calgary.

It also looked at the economic contributions to the Calgary economy from the Tsuut’ina Nation, Kainai Nation, Piikani Nation, Siksika Nation, Bearspaw First Nation, Chiniki First Nation, and Goodstoney First Nation.

The report found that of the $1.5 billion in Indigenous economic activity contributing to Calgary’s GDP, approximately $540 million came from First Nations governments, $530 million from Indigenous households, and $450 million from Indigenous-owned businesses.

The total economic output from Indigenous sources totalled nearly $2.8 billion—approximately 40 per cent, or $1.1 billion from governments—and associated total employment of 12,000 full-time equivalent positions generating $865 million in labour income.

“Community Futures Treaty Seven is very pleased with the Indigenous Economic Contribution Study that was conducted by The City of Calgary and Calgary Economic Development and views it as a very positive step in the history of Indigenous economic development,” said Shawna Morning Bull (Ikinnaisipistoohkomi), Manager Business Development for Community Futures Treaty 7.

“With ongoing updates expected, this assures long-term edification for Indigenous and non-Indigenous stakeholders, as this data will be able to provide an improved and factual explanation of the Indigenous economy in Treaty Seven.”

The report also recognizes the level of tax input into Calgary, totalling $293 million from Indigenous individuals and businesses.

“I really hope that this report highlights the contribution of indigenous peoples across the region, and importantly, that statistic that Indigenous peoples do pay taxes,” Morning Bull said.

“There is still that stigma that Indigenous peoples don’t pay taxes, and that is simply not true. So I think it’s another takeaway that that I hope Calgarians glean from this report.”

Systematic discrimination against Indigenous people was among the barriers identified in the report that prevented economic participation.

Improving economic participation

Among the findings in the report were the levels of labour participation by Indigenous individuals.

Looking at 2021’s unemployment rates, the report found that non-Indigenous unemployment rates were at 12.1 per cent, versus 17.9 per cent for individuals with Indigenous identity, 20.6 per cent for First Nations members, and 15.9 per cent for Métis.

It also found that the median income for Indigenous, First Nations, and Métis peoples lagged behind people of non-indigenous identity—but on a positive note, found that that gap was quickly narrowing.

Between 2016 and 2021, median non-indigenous incomes went from $44,143 per year to $45,200 for a difference of $1,057. For Indigenous people, that gap went from $36,180 to $38,800—a $2,620 difference or nearly 2.5 times as much.

Koplovich said that numbers like those presented in the report should be taken as a sign that there are other additional ways to address critical labour shortages in Calgary.

“I think about that statistic that approximately 42 per cent of the indigenous population in Calgary is under the age of 25, and they’re the fastest growing population,” she said.

“When you think about the labour gap, and the labour shortages that we’re seeing across our economy—I think about, of course, all the work that we’re doing to make it easier for newcomers to come to our city—but really recognizing the great potential of the Indigenous youth and how they can contribute to, to our workforce.”

Among the recommendations made by the report to improve Indigenous economic participation were to support a City of Calgary Indigenous procurement program for city contracts towards Indigenous-owned businesses, working with First Nations surrounding Calgary to enhance economic development programs, and to attract Indigenous meetings and events to the city.

“I always think about that concept of nothing about us without us. It’s really working with the Nation to say, this is what we do as Calgary Economic Development, and how can we support your economic development work, and work with your communities to really have mutual benefits.”

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