III.

Economic Activities

Nova Scotia’s economic development has been shaped largely by its natural resources and geographic location. The economy was initially dominated by mining, fishing, forestry, and farming. Since the 1930s, manufacturing industries have grown in importance. Most manufacturing jobs, such as fish processing and pulp and paper production, are closely tied to the province’s natural resources. The service sector, which includes the increasingly important tourism industry, grew rapidly in the 20th century and today is the leading source of income and employment in the province.

Nova Scotia’s unemployment rate is higher than in most other provinces, 7.8 percent in 2006, and per-capita incomes are below the national average. This is due mainly to fluctuating demand for many of Nova Scotia’s products and to the seasonal nature of employment in industries such as tourism. Federal financial support in the form of transfer payments and grants helps compensate the province for these fluctuations.

A.

Agriculture

The climate and geography across Nova Scotia are suitable for growing a variety of crops. The Annapolis Valley is the largest and most fertile agricultural region in the province and is suited to horticulture, livestock production, and livestock feeds. Livestock and livestock products generate a majority of farm income in Nova Scotia. Dairying is the largest sector, accounting for one-quarter of total farm production. The production of poultry, beef, and pork are also important.

The most common field crop in Nova Scotia is hay, which is not a market crop, but is used to support livestock. Grain crops are of only minor importance.

Nova Scotia is one of a handful of areas in the world where wild blueberries are harvested commercially. Blueberries thrive throughout much of the province and account for nearly half of Canada’s annual blueberry crop. Considerable quantities of apples and strawberries are also grown.

B.

Fisheries

Excellent fishing banks lie a few miles offshore, and fishers have long made a living from the sea. Among the Canadian provinces, Nova Scotia ranks second only to British Columbia in the value of its annual fish production. The most valuable species are shellfish—especially lobsters, scallops, and crabs. Other important species include haddock, herring, and pollock. In recent years dwindling cod stocks have nearly decimated the cod fishery—once a leading industry in the province. Since 1992, cod-fishing bans and strict quotas imposed by the federal government have caused hardship for many cod fishers throughout the Maritimes.

Aquaculture (fish farming) is a rapidly growing industry in Nova Scotia. The provincial department of agriculture and fisheries encourages aquaculture development through training and financial assistance. Among the species raised are Atlantic salmon, steelhead, blue mussels, scallops, rainbow trout, and oysters.

In 1984 the United Nations International Court of Justice (World Court) resolved a long-standing dispute between Canada and the United States over ownership of the Georges Bank, a fishing bank located near the coast of Massachusetts. Although the World Court awarded Canada just one-sixth of the disputed territory, Canada’s portion contained the richest fishing grounds. The decision gave Nova Scotian and other Canadian fishers exclusive fishing rights to an area long fished by both countries.

C.

Mining

Mineral production in Nova Scotia remains an important activity. Historically, Nova Scotia’s most valuable mineral product was coal. Mines in the Cape Breton Regional Municipality contain excellent coking-quality coal, which was long used to generate electricity and to produce iron and steel. However, much of the coal is expensive to extract, and in 2001—after years of financial difficulties—the last of Cape Breton’s once-numerous coal mines was forced to shut down.

Other valuable minerals found in Nova Scotia are salt and gypsum. Important salt deposits are located in north central Nova Scotia. Nova Scotia leads all the other Canadian provinces in the production of gypsum, which occurs in outcroppings throughout the northern half of the province. Much of Nova Scotia’s gypsum is exported to the United States.

Nova Scotia has large deposits of barite, used primarily in oil well drilling. The province also produces sand and gravel, cement, stone, and clay. Offshore deposits of petroleum and natural gas are mined near Sable Island.

D.

Forestry

Some 37,700 sq km (14,600 sq mi) of Nova Scotia is productive forestland. Most of the forests are privately owned, and many can best be called farm woodlots. Large sawmills are found primarily in northern Nova Scotia. The principal forestry products are pulpwood and sawn lumber. Many woodlot owners, especially in northern areas, produce maple syrup from the sugar maple.

Forestry has been important to the economy of Nova Scotia since the early 18th century. In the 19th century, Nova Scotia’s forests provided timber for wooden ships and planking that was carried to British markets overseas. The development of the pulp and paper industries in the late 19th and early 20th centuries greatly added to the value of the province’s forests.

E.

Manufacturing

Manufacturing is a leading economic activity in Nova Scotia. In 2004 manufacturing employed 10 percent of the province’s workers. Most manufacturing employment is based on the processing of local resources. The primary industries are food processing and pulp and paper production. Food-processing industries include the processing of fish and seafood, milk, fruits and vegetables, and livestock. Fish-processing plants are found throughout Nova Scotia. Important plants are located in Lunenburg, Yarmouth, Chéticamp, and Digby. Forest-based industries have had a historic role in the development of Nova Scotia, and they are still significant. Besides pulp and paper mills, there are a number of sawmills and furniture manufacturing plants.

Other industries include the manufacture of motor vehicle tires, transportation equipment, metal containers, concrete products, petroleum products, and electronic equipment. Historically, shipbuilding was important to the provincial economy although it has declined in recent years. Halifax is a center for the assembly of automobiles and the manufacture of railroad cars, aircraft, and aerospace equipment.

F.

Services

Most of the labor force in Nova Scotia is employed in service industries, which include personal and business services, wholesale and retail trade, banking and finance, communications, government administration, and public utilities. Taken together, services accounted for 79 percent of Nova Scotia’s gross domestic product (GDP) in 2001.

With an economy based largely on the extraction and processing of natural resources, Nova Scotia depends heavily on trade with other provinces and foreign countries to provide markets for its products. Fish and fish products and forest products are leading exports. Most sales outside Canada are to the United States.

More than 1 million tourists visit Nova Scotia annually, with June to October being the most popular travel months. About one-quarter of all tourists arrive from foreign countries. Visitors are attracted to the province’s scenic areas and to its many cultural institutions and historic sites. Nova Scotia is often called Canada’s Ocean Playground because of its numerous beaches. There is excellent sport fishing in offshore waters, and inland streams offer trout and salmon fishing. The provincial department of tourism and culture plays an active role in marketing Nova Scotia at home and abroad as a tourism destination.

G.

Electricity

More than 90 percent of Nova Scotia’s electrical energy comes from coal-fired power plants, with waterpower and oil-fired plants providing the rest. The major steam-driven power plants are at Lingan Bay, in Cape Breton; Tufts Cove, in the city of Dartmouth; Point Aconi; and Trenton. There are more than 30 small hydroelectric power plants, of which the largest is at Wreck Cove in the Cape Breton Highlands.

The absence of long rivers and high elevations precludes any extensive development of conventional waterpower in Nova Scotia, but sea tides have enormous potential to generate electricity. In 1984 Nova Scotia opened a tidal power plant at the estuary of the Annapolis River on the Bay of Fundy—the first such facility of its kind in North America. The plant uses the largest turbine ever constructed for hydroelectric production.

H.

Transportation

Nova Scotia’s earliest transportation route was the sea, with road construction beginning only in the late 18th century. Construction of railroads began in the mid-19th century, with most major rail lines completed by World War I (1914-1918). Today, Nova Scotia has an extensive network of roads, air routes, and rail lines, but maritime transportation and shipping remains important. Of the Atlantic ports of Canada, Halifax, with its year-round ice-free harbor, is second only to Montréal in the number of ships calling. Halifax Harbour is located a full day closer to Europe than any major U.S. port and is renowned for its international shipping business. The harbor has excellent facilities and is deep enough to permit easy entry to the largest oceangoing vessels. Cape Breton and Windsor also have excellent harbors. Nova Scotia has the second largest number of vessels with Canadian registry, although most are small fishing craft.

Nova Scotia’s mainline railroad carrier is Canadian National (CN) Railways, which connects international shippers in Halifax to the major urban centers of Montréal and Toronto in Canada and Chicago in the United States. Nova Scotia also has two privately owned short line railway carriers that offer service to regional and local shippers, as well as some passenger service. They are Cape Breton and Central Nova Scotia Railway (CBNS), which links Truro in central Nova Scotia with Sydney on Cape Breton Island, and the Windsor and Hantsport Railway, which offers service between Windsor Junction and New Minas. In addition, VIA Rail provides transcontinental passenger service between Halifax and Montréal six days a week. Acadian Lines offers bus service to most major communities in Nova Scotia. Several smaller bus companies also provide regional and local transportation services.

There are more than 48,700 km 30,260 mi>) of roads in Nova Scotia, although just over half are paved. The highway system includes more than 400 km (250 mi) of the Trans-Canada Highway, which links Cape Breton with Moncton, New Brunswick, via a causeway across the Strait of Canso. Halifax has an international airport. There are also airports at Cape Breton and Yarmouth. Automobile and passenger ferries connect Nova Scotia to locations in Newfoundland and Labrador, Prince Edward Island, and Maine.