Operating revenue for Canada’s employment services industry group rose 4.8% to C$13.3 billion (US$11.44 billion) in 2014, Statistics Canada reported today. The group consists of establishments primarily engaged in permanent placement, executive search, contract staffing, temporary staffing and co-employment staffing services.

Ontario generated most of the employment services group’s operating revenue at 52.6%, followed by Alberta at 25.2% and Quebec at 10.8%.

Operating expenses grew at a similar pace as operating revenue, resulting in an operating profit margin of 3.6% in 2014, up slightly from 3.4% in 2013. Salaries, wages and benefits represented the largest expense item for the industry group, accounting for 63.7% of total operating expenses, followed by subcontract expenses at 24.8%.

Temporary staffing services contributed 52.8% to the industry group’s sales, followed by permanent placement and contract staffing services with 38.5% and “other goods and services” with 8.8%.

The business sector, which is the primary client of the employment services industry group, accounted for 86.5% of sales in 2014. The government and public institutions sector accounted for 9.1% of total sales, while the remaining 4.4% of sales was to individuals and clients outside Canada.