The economy of NunavutUnfortunately, Nunavut suffers from the highest unemployment rate in Canada. However, it is one of the leading territories in labor force participation. The high unemployment rate is a consequence of the sparse population, large land mass, and isolation from the other provinces, which results in a high cost of living. Its harsh climate creates a lack of an agricultural industry, making basics expensive for consumers, causing food insecurity, since the minimum wage is not sufficient enough to afford basic food at these high prices. Furthermore, Nunavut faces a lack in sufficient transportation and infrastructure for the territory.
In 2021 the territory had a GDP of 3.36 billion Canadian dollars, with the mining, quarrying, and gas and oil extraction industry contributing the most. Its mineral wealth makes Nunavut one of the leading provinces in metallic mineral production. However, employment in the mining industry for residents in Nunavut is hindered by cultural and economic barriers.