Calgary Forges Ahead: Diversification and Innovation Drive 2026 Economic Outlook

Calgary's Economic Pulse

Calgary is charting a course through a complex economic landscape, with diversification and innovation taking centre stage, according to Calgary Economic Development's latest outlook, released November 19, 2025. As of October 2025, the city's unemployment rate stood at 7.9 per cent, slightly above the national average of 6.9 per cent. However, there's positive momentum in youth employment, which saw a significant decrease to 16.5 per cent in the Calgary Economic Region, down from 19.6 per cent in September. Projections indicate the overall rate will stabilize around 7 per cent in 2026.

Investing in a Resilient Future

Calgary Economic Development emphasizes a strategic shift towards diversification, underpinned by recent policy decisions. The City Council's 2025 Budget, approved November 22, 2024, injects vital funds into infrastructure and transit, including the Green and Blue Line extensions. Complementing this, Alberta's March 2025 budget introduced new tax credits for technology and clean energy, directly supporting Calgary's innovation agenda and the broader "Uplook" economic strategy.

Population Boom and Housing Realities

The city's economy is forecast to expand by 2.4 per cent in 2026, outpacing the national projection. This growth is fueled in part by persistent in-migration, with Calgary attracting 88,078 migrants in 2023—the highest per capita among major Canadian cities. While contributing to Canada's leading labour market participation, this rapid influx has also pressured the housing market, leading to a record number of housing starts in 2024, predominantly in multi-family units, but also rising affordability concerns.