The economy of the islands, due to their location, has been dependent on fishing and servicing fishing fleets operating off the coast of
Newfoundland. The economy has been declining, however, due to disputes with
Canada over fishing quotas and a decline in the number of
ships stopping at the islands. In 1992 an arbitration panel awarded the islands an
exclusive economic zone of to settle a longstanding territorial dispute with Canada, although it represents only 25 percent of what
France had sought. The islands are heavily subsidized by France, which benefits the standard of living. The government hopes an expansion of
tourism will boost economic prospects, and test drilling for oil may pave the way for development of the energy sector.
Agriculture The climate and the small amount of available land militate against activities such as farming and livestock raising (weather conditions are severe, confining the
growing season to a few weeks, and the soil contains significant
peat and
clay and is largely infertile). Since 1992 the economy has been in steep decline, following the depletion of fish stocks due to
overfishing, the limitation of fishing areas and the ban imposed on all cod fishing by the Canadian Government.
Unemployment The labour market is characterized by high
seasonality, due to climatic hazards. Traditionally, the inhabitants suspended all outdoor activities (construction, agriculture, etc.) between December and April. In 1999, the unemployment rate was 12.8%, and a third of the employed worked in the public sector. The employment situation was worsened by the complete cessation of deep-sea fishing, the traditional occupation of the islanders, as the unemployment rate in 1990 was lower at 9.5%. In 2023, the unemployment rate in Saint-Pierre-et-Miquelon was 2.9%. About 70% of the islands' supplies are imported from Canada or from other parts of France via
Nova Scotia. There are, as of mid-2024, six hotels on Saint-Pierre as well as B&Bs and
Airbnb rentals on both main islands. As of mid-2024, there are 13 restaurants and bistros on Saint-Pierre and one on
Île aux Marins; further, the islands' tourism bureau promotes their authentic French cuisine as well as other cuisines.
Currency Saint Pierre and Miquelon 20 Francs banknote.jpg|20-CFA-franc banknote SPM001.JPG|A 1948 Aluminum Franc coin Stamp-St Pierre 1891 25Fr overprint.jpg|1891
postage stamp rate during that month, where 1 euro equaled between 1.47 and 1.50 CAD. The
euro has been the official currency in Saint Pierre and Miquelon since 1 January 1999, while the euro coins and banknotes were introduced on 1 January 2002, in tandem with
Metropolitan France. Before 1890, Mexican
dubloons and
Canadian dollars both circulated on the islands. Starting in 1889, these were supplemented with local franc banknotes from the
Banque des Îles Saint-Pierre-et-Miquelon until the end of World War One. The
Institut d'Émission des Départements d'Outre-Mer (IEDOM), the French public institution responsible for issuing currency in the overseas territories that used the French franc and later the euro on behalf of the
Bank of France, has had an agency in Saint Pierre since 1978.
Stamps The islands have issued
their own stamps from 1885 to the present, except for a period between 1 April 1978 and 3 February 1986 when French stamps not specific to Saint Pierre and Miquelon were used. ==Demographics==