The Canadian temporary staffing industry will see a slight increase in revenue this year, according to the “Canadian Staffing Industry Outlook: 2016 Update” report released by Staffing Industry Analysts. The industry will see revenue edge up 1% year over year in 2016 to reach a market size of C$8.2 billion. The report projects an increase to 4% growth in 2017.

The Canadian place and search industry, which has less exposure than temporary staffing to the oil and gas sector, will expand 6% this year and another 6% in 2017, fueled by solid demand for direct hire and retained search services.

Adding place and search to the temporary staffing industry, the total Canadian staffing industry should reach C$8.6 billion this year and C$8.9 billion next year.

The report estimates the Canadian temporary staffing industry declined 4% in 2015 to a size of C$8.1 billion. Combining temporary staffing and place and search, total Canadian staffing industry revenue declined to C$8.5 billion in 2015.

“The single-digit decline belies the disparate and acute trends at play in different sectors, with staffing to the oil and gas sector down more than 20% while staffing to some manufacturing industries expanded more than 20%, by our estimates,” said Research Manager Timothy Landhuis, who authored the report.

Staffing Industry Analysts President Barry Asin also noted a “tale of two cities” among attendees at the Association of Canadian Search, Employment and Staffing Services’ National Conference 2016, held last month in Niagara Falls, Ontario.

“The overall mood of the conference was positive, particularly in the major metro areas of Toronto and Vancouver,” Asin said. “The biggest concern for the future came from attendees from areas heavily dependent on the energy sector, where low oil prices have heavily impacted economic growth — Calgary and Alberta in particular.”

The forecast is based on public company reports, the SIA Canada Staffing Trends Survey conducted in April 2016, the Canadian Staffing Index, conversations with industry executives, and data on economic and employment trends.

For the first time in its history, Staffing Industry Analysts published detailed market size estimates and revenue growth forecasts for the following skill segments: industrial, office/clerical, information technology, engineering, healthcare, and finance/accounting. The report, available online to corporate members, also provides discussion of key developments for the staffing industry unique to the provinces of Ontario, Quebec, British Columbia, and Alberta.