Alberta's economy is
advanced,
open,
market-based, and characterized by a highly educated workforce, strong institutions and property rights, and sophisticated financial markets. While most Albertans work in the service sector, Alberta does possess a significant industrial base, intelligence economy and energy sector. This energy sector is famously focused in oil and gas extraction. Oil and gas has been culturally influential, having shaped politics, generated "striking it rich" narratives, and created boom-and-bust cycles. The province has over three million head of cattle, and Alberta beef has a healthy worldwide market. Forty percent of all Canadian beef is produced in Alberta. The province also produces the most
bison meat in Canada. Sheep for wool and mutton are also raised. Wheat and
canola are primary farm crops, with Alberta leading the provinces in
spring wheat production; other
grains are also prominent. Much of the farming is dryland farming, often with fallow seasons interspersed with cultivation. Continuous cropping (in which there is no fallow season) is gradually becoming a more common mode of production because of increased profits and a reduction of
soil erosion. Across the province, the once common
grain elevator is slowly being lost as rail lines are decreasing; farmers typically truck the grain to central points. field,
Edmonton In 2016, forestry provided over 15,000 jobs and generated over $1.0 billion to employment income, $2.6 billion to the provincial GDP, and over $6.1 billion in revenue. Uses for harvested timber include
pulpwood,
hardwood,
engineered wood and
bioproducts such as chemicals and
biofuels. Alberta is the leading
beekeeping province of Canada, representing approximately 40% of honey bees in the country, with some beekeepers wintering
hives indoors in specially designed barns in southern Alberta, then migrating north during the summer into the
Peace River valley where the season is short but the working days are long for
honeybees to produce honey from
clover and
fireweed.
Hybrid canola also requires bee pollination, and some beekeepers service this need. The mining and quarrying sector, excluding oil and gas, employed approximately 4,300 Albertans in 2021 (around 0.2% of the population) and focused on the mining of coal and mineral resources, such as sand, gravel, salt, limestone, clay, shale and more. Oil and gas extraction itself however is Alberta's largest and most economically dominant primary industry. In 2021, the industry employed roughly 84,500 people in extraction, with another 50,500 in support activities—totaling approximately 135,000 jobs or about 5.6% of Alberta's total employment. Alberta also produced about of crude oil per day in 2023, making up 84% of Canada's total oil production.
Oil extraction Alberta is the largest producer of
conventional crude oil,
synthetic crude,
natural gas and gas products in Canada. Alberta is the world's second-largest exporter of natural gas and the fourth-largest producer. Two of the largest producers of
petrochemicals in North America are in central and north-central Alberta. In both Red Deer and Edmonton,
polyethylene and
vinyl manufacturers produce products that are shipped all over the world. Edmonton's
oil refineries provide the raw materials for a large
petrochemical industry to the east of Edmonton. The
Athabasca oil sands surrounding
Fort McMurray have estimated
unconventional oil reserves approximately equal to the conventional oil reserves of the rest of the world, estimated to be . Many companies employ both conventional
strip mining and non-conventional
in situ methods to extract the
bitumen from the
oil sands. Another factor determining the viability of oil extraction from the oil sands is the
price of oil. The
oil price increases since 2003 have made it profitable to extract this oil, which in the past would give little profit or even a loss. By mid-2014, rising costs and stabilizing oil prices threatened the economic viability of some projects. An example of this was the shelving of the Joslyn North project in the Athabasca region in May 2014. With concerted effort and support from the provincial government, several high-tech industries have found their birth in Alberta, notably patents related to interactive
liquid-crystal display systems.
Secondary sector in 2010 While not as important as its service sector or as influential as its oil and gas industry, Alberta's
secondary sector — comprising manufacturing, construction, and utilities — is still of importance, especially to employment and economic diversification. In 2021, Alberta's
manufacturing sector employed approximately 122,300 individuals, accounting for 5% of the province's total employment. The sector also contributed $23.4 billion, or 8%, to Alberta's Gross Domestic Product (GDP). Key subsectors include
food manufacturing (15.8% of manufacturing employment), fabricated metal products (13.6%), machinery (9.8%), wood products (9.8%), and chemicals (8.7%). Notably, 96% of these jobs were full-time, and 73% of the workforce fell within the core working age of 25–54. However, with 20% of workers aged 55 and older, the sector faces impending retirements that could lead to significant job vacancies. Alberta's
construction industry is a major employer, with 222,200 individuals working in the sector in 2021, representing 10% of the province's workforce. The industry contributed $23.6 billion to Alberta's GDP, equating to 8% of the total. Employment is distributed across trade contracting (54.8%), building construction (30.8%), and heavy and civil engineering construction (14.4%). The workforce is predominantly male (84%), with a significant portion (27%) being self-employed. Additionally, Indigenous workers constitute 13.5% of the construction labor force, surpassing their representation in the overall provincial workforce. The utilities sector, which encompasses electricity generation, transmission, and distribution, employed 13,354 Albertans in 2022. Employment here grew at an average annual rate of 2.6% between 2017 and 2022, largely because of the expansion of renewable energy sources.
Tertiary sector Alberta's
service sector employs around 80% of Albertans, in various fields like retail, healthcare, education, professional services, tourism, FIRE (finance, investment and real estate), transportation and warehousing, food services, public administration, arts and recreation, and more. Therefore, it unsurprisingly accounts for the majority of Alberta's economic activity. is home to hundreds of retail businesses and was once the biggest mall in the world The
retail and
wholesale trade sector is a significant employer in Alberta, accounting for approximately 15% of total provincial employment. In 2022, wholesale trade contributed $14.7 billion, and retail trade contributed $14.1 billion to Alberta's GDP, collectively making up about 8% of the province's total GDP. Healthcare and social assistance, which includes hospitals, clinics, nursing homes and community health programs, is similarly one of the largest employers in Alberta. In 2020, approximately 247,100 individuals were employed in this sector, representing about 11% of the province's total employment. About 88,800 of these jobs are in the ambulatory health care services sub-sector, while 107,800 are employed in the hospitals sub-sector and 50,500 are employed in nursing and residential care facilities. In terms of economic contribution, the sector added $16.7 billion to Alberta's GDP in 2020, accounting for 5.4% of the provincial total. Employment prospects here are good, due to an aging population and ongoing labor shortages, particularly in nursing and residential care facilities. Educational services account for 7.1% of total provincial employment in Alberta. In 2022, of the 168,100 people employed here, about 98,400 people (58.5%) worked in primary and secondary education, 36,400 people (21.7%) worked in university education, 17,800 (10.6%) worked in other schools and educational support, and 12,200 (7.3%) worked in post-secondary education. In 2022, the sector contributed $12.4 billion, or 4%, to the provincial GDP. The finance, insurance, real estate and leasing (or FIRE) is a big part of Alberta's economy. In 2023, the finance and insurance sector alone contributed $14.88 billion to the province's GDP, with a five-year average growth rate of 2.8%. In February 2025, activity in this sub-sector declined for the third consecutive month, reflecting a cooling in home resale activity across the country. The
professional, scientific, and technical services sector has experienced rapid growth in recent times, with employment increasing by 28,700 jobs (15.1%) between 2021 and 2022. Since 2018, employment has grown by 47,300 jobs (27.6%), making it one of the fastest-growing sectors in Alberta. The transportation and warehousing sector employed 130,900 people in 2021, accounting for 6% of total provincial employment. Employment in this sector increased by 10,600 jobs (8.8%) from 2020 to 2021. In 2022, approximately 108,200 people were employed in Alberta's public administration sector, accounting for 4.6% of provincial employment. Employment in this sector increased by 5,000 jobs (4.8%) from 2021 to 2022. The arts, entertainment, and recreation sector contributed $1.61 billion to Alberta's GDP in 2023, with an 8.2% growth. However, over a five-year period, the sector experienced an annualized -3.7% GDP and -3.5% employment decline, despite employing 22,663 people in 2023. This may be due to
COVID-19 pandemic-related disruptions, but lower funding from government, higher difficulty in obtaining and retaining staff, and shifts in consumer behaviour could also be contributing factors. The accommodation and food services -which encompasses accommodations, food and beverage services, recreation and entertainment, and travel services- is a significant component of Alberta's service economy. 140,400 people were employed here in 2023, which accounts for 6.1% of Alberta's total employment. Furthermore, in 2023, the sector contributed approximately $8.1 billion to Alberta's GDP, marking a 7.8% increase from the previous year. This growth indicates a strong recovery from the pandemic's impact, with the sector surpassing pre-pandemic levels for the first time.
Tourism at
Bow Valley Provincial Park in
Canmore Alberta has been a tourist destination from the early days of the 20th century, with attractions including outdoor locales for skiing, hiking, and camping, shopping locales such as
West Edmonton Mall,
Calgary Stampede, outdoor festivals, professional athletic events, international sporting competitions such as the
Commonwealth Games and Olympic Games, as well as more eclectic attractions. According to Alberta Economic Development, Calgary and Edmonton both host over four million visitors annually.
Banff,
Jasper and the
Rocky Mountains are visited by about three million people per year. Alberta tourism relies heavily on
Southern Ontario tourists, as well as tourists from other parts of Canada, the United States, and many other countries. There are also natural attractions like
Elk Island National Park,
Wood Buffalo National Park, and the
Columbia Icefield.
Alberta's Rockies include well-known tourist destinations
Banff National Park and
Jasper National Park. The two mountain parks are connected by the scenic
Icefields Parkway. Banff is located west of Calgary on
Highway 1, and Jasper is located west of Edmonton on the
Yellowhead Highway. Five of Canada's fourteen
UNESCO World Heritage Sites are located within the province:
Canadian Rocky Mountain Parks,
Waterton-Glacier International Peace Park, Wood Buffalo National Park,
Dinosaur Provincial Park and
Head-Smashed-In Buffalo Jump. A number of these areas hold ski resorts, most notably
Banff Sunshine,
Lake Louise,
Marmot Basin,
Norquay and
Nakiska. . The event is one of the world's largest
rodeos. About 1.2 million people visit the Calgary Stampede, a celebration of Canada's own Wild West and the cattle ranching industry. About 700,000 people enjoy Edmonton's
K-Days (formerly Klondike Days and Capital EX). Edmonton was the gateway to the only all-Canadian route to the Yukon
gold fields, and the only route which did not require gold-seekers to travel the exhausting and dangerous
Chilkoot Pass. Another tourist destination that draws more than 650,000 visitors each year is the Drumheller Valley, located northeast of Calgary.
Drumheller, known as the "Dinosaur Capital of The World", offers the
Royal Tyrrell Museum of Palaeontology. Drumheller also had a rich mining history being one of Western Canada's largest coal producers during the war years. Another attraction in east-central Alberta is
Alberta Prairie Railway Excursions, a popular tourist attraction operated out of
Stettler, that offers train excursions into the prairie and caters to tens of thousands of visitors every year. ==Government and politics==