The original economic driver was coal mining; however, the forestry industry supplanted it in the early 1960s with the building of the Macmillan Bloedel pulp mill at Harmac in 1958, named after Harvey MacMillan. Today the pulp mill is owned by the employees and local investors and injects well over half a million dollars a day into the local economy. The largest employer is the provincial government. The service, retail and tourism industries are also big contributors to the local economy.
A recent surge of higher-density real estate development, centred in the Old City/Downtown area, as well as construction of a city-funded waterfront conference centre, have proven controversial. Proponents of these developments argue that they will bolster the city's economy, while critics worry that they will block waterfront views and increase traffic congestion. Concerns have also been raised about the waterfront conference centre's construction running over its proposed budget. The current council is working hard to solve homeless issues, and has established a strong relationship with the provincial government to provide several hundred low-income housing spaces. Nanaimo has also been experiencing job growth in the technology
