A territory of more than two million square kilometres in Canada's desolate Arctic is marking its first anniversary.

Nunavut came into being last 1 April, amid much celebration and hope for the future.

But a year later, the celebrations are low-key, as people try to reconcile their dreams with the often harsh realities of Nunavut.

Unemployment and suicide rates are still several times higher than in the rest of Canada.

The situation is worst in small, remote communities, where critics say nothing has changed.

Nunavut's government leader agrees it has not been an easy year, but he says the government is working hard.

Mining is a main hope for economic growth in the Arctic.

Still, one year on some people in Nunavut say their hope is now less for themselves than for their children.

A generation from now, Nunavut should be a much more promising and prosperous place.