Prince Edward Island: provincial economy at a glance

What happened

Prince Edward Island's unemployment rate was 7.4% in October 2026, employment changed by 1.9% from a year earlier and the population by 0.8% from four quarters earlier. Real output across all industries changed 21.3% between 2019 and 2025.

Why it happened

Why it matters

History

Across geographies

What it influences

Risks

What to watch

Prince Edward Island against the other nine

Prince Edward Island leads the ten provinces on output growth and also on inflation. Real output across all industries is 21.3% above 2019, the fastest of any province, and real GDP at market prices, at 2017 constant prices, is 22.7% above 2019, also the fastest. Employment changed by 1.9% in the year to October 2026, third of ten, and the participation rate of 65.7% ranks 4th of 10. Consumer prices rose 5.7% in the year to September 2026, the highest rate of any province, and average weekly earnings rose 2.3% in the year to August 2026, so pay did not keep pace with prices.

The data behind this graphic

Change in real output since 2019, by province

Item	Value
Prince Edward Island	21.3%
British Columbia	16.2%
Nova Scotia	15.9%
Ontario	12.3%
Alberta	11.9%
New Brunswick	11.1%
Saskatchewan	11.0%
Quebec	10.6%
Manitoba	8.0%
Newfoundland and Labrador	-1.3%

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The unemployment rate was 7.4% in October 2026, level with New Brunswick's and behind only Newfoundland and Labrador's, against 8.2% a year earlier, and average weekly earnings of C$1,162 a week are the lowest of the ten provinces. The population grew 0.8% in the year to 1 July 2026, ranking 10th of 10; net movement to and from other provinces was -141 and non-permanent residents changed by -264. Because the province is small, month-to-month survey estimates carry more sampling variation than in larger provinces, and the comparisons here should be read as direction, not precision.

The data behind this graphic

Consumer price inflation, by province

Item	Value
Prince Edward Island	5.7%
Nova Scotia	5.6%
New Brunswick	5.0%
Newfoundland and Labrador	4.7%
Manitoba	4.4%
Alberta	3.6%
Saskatchewan	3.3%
Quebec	3.1%
British Columbia	3.0%
Ontario	2.5%

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A small economy with a large public sector and fast-growing construction

Public administration employs 11.3% of workers, the highest share of any province, and construction 10.3%, also the highest. Health care and social assistance employs 17.1%. Real output of construction grew 50.5% since 2019, the fastest of any province, manufacturing grew 21.8%, also the fastest, professional services 36.1% and health care 25.3%. Mining, a tiny industry here, changed by -11.8% and agriculture grew 3.2%.

The data behind this graphic

Change in real output since 2019, Prince Edward Island

Item	Value
Construction	50.5%
Professional services	36.1%
Health care	25.3%
Manufacturing	21.8%
All industries	21.3%
Agriculture	3.2%
Mining and oil and gas	-11.8%

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Domestic goods exports were C$2.5 billion in 2025, the smallest of the ten provinces, and 80.0% went to the United States. Energy products are almost absent from the export figures. The economy runs on services, construction and a small number of goods industries, so percentage changes in sector output reflect a small base.

Building and the public accounts

Over the latest twelve months, housing starts were 9.6 per thousand residents, second only to Alberta and above the five-year rate of 7.2. In Statistics Canada's government finance statistics for the fiscal year that began in April 2024, the government's net operating balance was -C$242 million on revenues of C$3.1 billion, a balance equal to -7.8% of revenue (negative is a deficit). Its liabilities were 1.51 times revenue, the third-lowest multiple of the ten provinces. The Statistics Canada basis differs from the provincial budget's.

What it means for decisions

What the data cannot say: they do not explain why prices rose so quickly, they cannot separate tourism or farming from the rest of services, and the survey and sector figures for a small economy are subject to larger percentage swings. Nothing here is a forecast.

Labour market and prices

The unemployment rate was 7.4% in October 2026, ranking joint 2nd of 10 among the ten provinces (1st = highest). Employment changed by 1.9% over the year and the participation rate was 65.7%. Average weekly earnings were C$1,162 a week in August 2026, ranking 10th of 10. Consumer prices were up 5.7% in September 2026 on a year earlier, ranking 1st of 10.

People and output

The population was 0.8% higher than four quarters earlier. Net interprovincial migration over the latest four quarters was -141 persons (negative = net outflow), and non-permanent residents changed by -264. Real output across all industries changed 21.3% between 2019 and 2025. Retail sales in August 2026 were 9.7% higher than a year earlier.

Economic structure and trade exposure

In 2025 (the year of the table's latest annual average), health care and social assistance employed 17.1% of Prince Edward Island's workers, retail trade 10.2%, construction 10.3% and public administration 11.3%. Among goods-producing groups, agriculture 3.5%; forestry, fishing, mining, quarrying, oil and gas 2.5%; and manufacturing 9.1%. Finance and insurance employed 2.8% and professional, scientific and technical services 5.7%.

Domestic merchandise exports were C$2.5 billion in calendar year 2025. 80% went to the United States and energy products were 0% of the total; energy products sent to the United States were 0% of all the province's domestic exports. These are customs-basis goods exports assigned to the province of origin as Statistics Canada defines it; they exclude services, which are a large part of some provincial economies, and the province of export clearance can differ from the province of production for some commodities.

Employment shares and export shares describe the structure of the economy; they do not by themselves show which industries drive growth, incomes or public revenue, or how exposed the province is to a given shock.

Long-run perspective

Population is 48.4% higher on 1 July 2026 than on 1 January 1981, against 69.5% for Canada as a whole. Real GDP (at 2017 constant prices) is 207.4% higher in 2025 than in 1981; this is a level comparison between two years, not an average annual rate, and it is not compared with a national figure here because the national real GDP series is monthly and on a different basis.

Employment is 76.5% higher in October 2026 than in June 1993, the start of the national series used here (65.1% for Canada). Over the past forty years the unemployment rate has ranged from 5.7% (December 2022) to 18.9% (October 1993); it was 7.4% in October 2026, against 6.7% for Canada.

Average weekly earnings, in current dollars and not seasonally adjusted, are 117.5% higher in August 2026 than in the same month twenty-five years earlier (106.8% for Canada). These are nominal figures: they include the effect of price increases over twenty-five years and are not a measure of the change in purchasing power.

These comparisons describe the size of changes between two dates. They do not say why this jurisdiction differs from Canada, and the end points can matter: a different starting year changes the percentage.

Public finances

In Statistics Canada's government finance statistics for the fiscal year that began in April 2024, the provincial government's revenue was C$3.1 billion and its expense C$3.3 billion, leaving a net operating balance of -C$242 million (-7.8% of revenue). Grants received from other governments (mostly federal transfers; the table does not split them by payer) were C$1.2 billion, 39.4% of revenue. Liabilities at the end of the year were C$4.7 billion and net worth -C$273 million. These are past-year accounts, not the current budget.

What is not assessed

Why these figures differ from other provinces, industry structure beyond the latest employment shares, housing prices and rents, exports by destination over time, the current budget and credit ratings, major projects, and policy changes. This profile cites no source that explains Prince Edward Island's position, and nothing here is a forecast.