The Canadian temporary staffing industry will see a decline in revenue this year, driven in part by large exposure to cutbacks in the oil and gas sector staffing suppliers, according to the “Canadian Staffing Industry Outlook: May 2015” report released by Staffing Industry Analysts. The industry, which includes staffing suppliers of both T4 tax form recipients and independent contractors, will see revenue fall 2% year over year in 2015 to reach a market size of C$8.3 billion. However, the report projects a rebound to 6% growth in 2016 to C$8.8 billion as GDP growth accelerates and oil prices stabilize.  

The Canadian place and search industry, which has less exposure than temporary staffing to the oil and gas sector, will expand 3% this year and increase 8% in 2016 to reach C$1.4 billion.

Combining temporary staffing and place and search, the forecast calls for the total Canadian staffing industry to decline 1% in 2015 but grow 6% in 2016 to reach C$10.3 billion.

“While significant layoffs are being reported in Alberta due to the oil and gas sector, the rest of Canada is on much more solid footing,” said Research Manager Timothy Landhuis, who wrote the report. “Exports represent roughly 30% of Canada’s GDP, with 70% of exports purchased by the United States. As growth in the US economy accelerates for the remainder of 2015, and as a strong US dollar makes Canadian exports more attractive, we expect decent GDP growth in most Canadian provinces, with the manufacturing sector in Ontario as an area that stands to benefit the most.”

The report estimates staffing of professional workers accounted for roughly 50% of Canada’s temporary staffing industry’s revenue in 2014 while commercial workers — either office/clerical or industrial “blue collar” workers — comprised the other half.