Nova Scotia is in a period of significant transformation. With demographic shifts, rapid technological change, and persistent productivity gaps, the choices made now will determine whether the region leads or lags in the coming decade. The good news? There’s a clear path forward—one that puts talent, innovation, and infrastructure at the center of growth.

The current picture

Demographic pressures

Nova Scotia’s population grew by just 3.8% from Q1 2023 to Q1 2025, trailing the national average of 5% over the same period.

The median age sits at 43.5—three years older than the rest of Canada.¹ Plus, 22.2% of Nova Scotians are over 65, compared to 18.9% of Canada’s population.² This aging trend means slower productivity gains and mounting pressure on healthcare and social services.

Immigration challenges

Nova Scotia relies heavily on immigration (both international and interprovincial), with over 80% of recent population growth coming from newcomers. Recent federal immigration policy changes have resulted in near-zero population growth in Canada, meaning international immigration to Nova Scotia will stagnate.³ Additionally, most new arrivals land in lower-wage roles, compounding persistent productivity challenges.

And there’s a bigger risk on the horizon. Net outflows in the 15–34 age group signal trouble for future talent pipelines—especially for high-skill and growth industries.⁴

If Nova Scotia doesn’t address these trends now, the province could face a widening gap between workforce supply and the skills needed for economic transformation.

Productivity concerns

Nova Scotia has also struggled to strengthen its productivity performance. Over the past three years, the province has experienced declines in productivity and now ranks second lowest in output per hour worked, ahead of only Prince Edward Island.⁵

Several key sectors lag well behind national averages, holding back wage growth and limiting improvements in the standard of living. For instance, output per hour worked in Nova Scotia’s construction industry is just $38.90, compared with $49.20 across Canada. The picture is similar in manufacturing, where productivity sits at $48.80 per hour, far below the national average of $66.50.⁶

Economic headwinds are expected to persist, with Deloitte’s Economic Outlook projecting just 1.7% growth for Nova Scotia in 2025 due to slower population growth and a softer labour market.

Low wages and the growth of AI and automation

In 2024, Nova Scotia had one of the lowest median wages among the provinces, at $30.79 per hour compared to $35.20 nationally.⁷ This wage gap reflects the province’s long-standing productivity challenges, but it also underscores the urgency of attracting more investment.

Nova Scotia’s weak investment track record leaves it vulnerable at a time when technological change is accelerating. Roughly 60% of Canadian jobs are highly exposed to AI, and 40% of global employers expect to reduce headcount due to automation.⁸ Without stronger investment in innovation, skills, and AI adoption, the province risks falling further behind—missing opportunities to raise productivity, strengthen wages, and compete in an increasingly digital economy.

The message is clear: digital skills and adaptability are no longer optional—they’re essential.

So, how do we turn challenge into opportunity?

The challenges facing Nova Scotia’s economy are intensifying due to evolving Canada–U.S. trade relations, shifting immigration policies, and global economic uncertainties. Nova Scotia must urgently adopt forward-looking economic policies that drive and sustain growth.

A skilled, adaptable workforce is the key enabler of prosperity. To align talent with economic strategy, Nova Scotia must address two critical questions:

1. What skills and capabilities are needed to support future growth?
2. How can these skills be developed or acquired to meet emerging demands?

A comprehensive approach is required, including:

• Upskilling people in low-wage jobs to enable transition into higher-value roles.
• Reskilling workers from low-growth or declining industries for sectors with greater potential.
• Attracting new talent from outside the province and country to fill critical gaps.
• Building new capabilities in areas such as digital literacy, data analytics, artificial intelligence, and green technology.

These pillars form the foundation for a practical roadmap to prosperity:  

By focusing on these priorities, Nova Scotia can not only address current challenges, but also unlock new opportunities for sustainable economic growth.

How Deloitte can help 

Deloitte's Human Capital practice provides tailored advisory services to help organizations: 

• Design learning and development strategies that both reskill workers displaced by recent economic shocks and upskill workers to better leverage new technologies.
• Redesign jobs and leadership roles for the future of work , considering changes in dominant industries and the introduction or expansion of technology
• Build resilient talent strategies .
• Unlock economic opportunities through skills development and digital transformation .
• Our integrated approach combines workforce expertise with economic and technological insights to drive sustainable growth. 

Let’s build Nova Scotia’s future together

Nova Scotia’s path to future prosperity runs through its people, ideas, and willingness to invest in what comes next.

Reach out to our Deloitte leaders to start a conversation about how we can help shape a more productive, resilient, and prosperous Nova Scotia.