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Canadian employment services revenue almost flat at C$13 billion in 2015

March 29, 2017

Operating revenue for Canada’s employment services industry group was almost unchanged at C$13.3 billion (US$9.6 billion) in 2015, down only 0.3% from 2014, according to the latest data released today by Statistics Canada. The group consists of establishments primarily engaged in permanent placement, executive search, contract staffing, temporary staffing and co-employment staffing services.

Ontario continued to generate most of the employment services group’s operating revenue at 54.6%, followed by Alberta at 21.2% and Quebec at 12.1%.

Coinciding with the decline in the oil and gas industry, the resource-based provinces reported lower operating revenue for employment services in 2015 than in 2014. Operating revenue in Alberta decreased by 14.1% to $2.8 billion. Saskatchewan fell by 5.0%, and Newfoundland and Labrador reported operating revenue fell 3.6%.

Operating expenses edged down by 0.7%, resulting in an operating profit margin of 4.1% in 2015, up from 3.7% in 2014. Salaries and subcontract expenses make up the majority of the expenses for the industry group, accounting for 88.3% of total operating expenses. Salaries, wages and benefits accounted for 60.2% of total operating expenses.

Temporary staffing services contributed 51.3% to the industry group’s sales, down from 52.7% in 2014. Permanent placement and contract staffing services generated 39.2% of total sales and “other sales of goods and services” contributed the remaining 9.4%.

The business sector, which is the primary client of the employment services industry group, accounted for 86.8% of sales in 2015. The government, not-for-profit organizations and public institutions sector accounted for 10.4% of total sales, while the remaining 2.8% of sales was to a combination of individuals, households and clients outside Canada.