Halifax is growing, to the detriment of rural Nova Scotia.

Statistics Canada released its first wave of data from the 2011 census on Wednesday. Halifax’s population is up 4.7 per cent from the 2006 census, but it’s still under the national average of 5.9 per cent.

“It’s good growth, it’s pretty significant,” said Marc Melanson, regional advisor with Statistics Canada.

We don’t get a lot of immigrants, but the vast majority of them tend to stay in Halifax, plus rural Nova Scotians are moving to the city, Melanson explained of the increase. Census data proves several small communities are dropping.

“I don’t find it surprising,” said Paul Kent, president and CEO of the Greater Halifax Partnership. “Population growth is largely the result of economic activity, which is why the census data shows population growth is showing in urban areas across the country.”

But what’s really interesting is to see what the next census in 2016 reveals, he said, speaking specifically about the $25-billion contract awarded to Halifax Shipyard.

“There’s potential for that to create a magnet effect for labour and people to locate in and around the Halifax area,” Kent said.

Low population growth, as well as losing young workers to other provinces, is one of the biggest issues for Atlantic Canadian companies, Kent said. That’s why economic development is so important.

“Major developments like shipbuilding, like Shell’s deepwater drilling, the Maritime transmission link with Newfoundland are part of the solution for what is definitely a very challenging issue,” he said.