Key takeaways from an economic development quality report from 2025 show the city's annual growth rate is around 2.5 per cent, while its unemployment rate sits higher than the provincial average.--NEWS FILE PHOTO
bmiller@medicinehatnews.com
City committee members heard the Medicine Hat’s growth rate between 2023 and 2024 sits at 2.54 per cent annual during a public meeting Thursday afternoon.
Members of the development and infrastructure committee were provided a presentation on the 2025 economic development report for quarters three and four, highlighting regional development, business and industry development, workforce development, investment, attraction and growth readiness.
According to city staff, the 2.54 per cent growth rate reported by Statistics Canada is desirable for city growth and puts less strain on infrastructure demands than municipalities like Lethbridge experience, with a growth rate of 4.14 per cent over the same time period.
“My messaging around this is 2.54 is a very healthy growth rate,” said Selena McLean-Moore, economic development director. “Over three pre cent it does cause issues for municipalities because it’s hard to keep up with infrastructure.”
McLean-Moore also compared the 3.16 per cent growth rate of Grande Prairie to Medicine Hat’s.
“Even compared to Grande Prairie, which is the heart of oil and gas, I would say we’re doing pretty good. I’m happy with the 2.54 per cent growth rate.”
The report also compared the local unemployment rate in November of 7.4 per cent, which is higher than the provincial average of 6.5 per cent and is also realistically higher as the data provided combines Medicine Hat unemployment rates with Lethbridge.
“Lethbridge, their CMA unemployment rate is lower than 7.4 per cent. So if we look at that then that means we’re probably higher than 7.4 per cent,” explained McLean-Moore, who cited unemployment as one of the city’s “biggest issues” as youth unemployment rates are reported at around 13 per cent.
Medicine Hat’s housing market rose slightly; according to the report, last November the total residential average price increased by 3.8 per cent year over year and new listings on the market increased by more than 11 per cent year over year.
When it comes to major projects either proposed or under construction, Medicine Hat’s $2.8 billion is more than four times larger than Lethbridge in comparison at $632 million and roughly 52 times more than Grande Prairie’s $52.9 million.
“Where the big jump is for us is our carbon capture hub,” explained McLean-Moore, who added the $2.4-billion proposed project to the report because it has not yet been added to the province’s website stating the project’s cost.
The carbon capture and storage hub project has been in the works for six years and was initiated by the city after topology showed the area was viable for the process.
Working with the province the city was able to get a designated zone, however last February the city sold its plans to study and develop a carbon sequestration hub, located in Cypress County, to Imperial Oil.
The additional $400 million remaining includes major projects like the Methanex carbon capture project, the new Holy Trinity Academy school and several residential developments around the city.
Another highlight of the report includes the city’s ability to leverage grant funding for projects. Throughout 2023 and 2025 the city paid a total cash contribution of $278,000 and was able to leverage an additional $851,000 in grants.
Over the next 18 months the city expects construction to be complete on a total of 560 new multi-family residential units, including apartments, affordable housing, senior housing and condos.
