Study: Who's calling at dinner time?

Business support services, of which telephone call centres are a major component, recorded unparalleled growth during the past two decades as a result of big advances in information and telecommunications technology and new modes of sales and service delivery.

According to a new study, employment in this industry jumped more than fivefold (447%), from 20,000 to 112,000 between 1987 and 2004. This far exceeded the 37% increase in all service industries and the 29% rise in overall employment.

Two recent events related to telephone call centres have thrust the industry into the limelight. On the negative side, nuisance and privacy complaints from the public as a result of unwanted calls, especially at dinner time, have led to demands for legislation to limit such calls. On the other hand, the industry's role in generating donations in response to the recent Asian tsunami disaster has served to enhance its image.

Using the Labour Force Survey, this study looks at the industry's rapid growth and the characteristics of its workers and jobs from 1987 to 2004. It also provides statistical evidence to dispel some myths about the industry.

Thanks to technological advances, which have made it possible to locate business support offices in areas far from clients, regions with high unemployment have particularly benefited. In 2004, for example, about one-quarter of all employment in the industry was in Atlantic Canada, notably Nova Scotia and New Brunswick. This compared with the region's 7% share of total employment in both the service industries as a whole and in all industries combined.

Women and youth are over-represented in the industry, which has a low rate of unionization. In 2004, over 60% of jobs were held by women, compared with the all-service-industry rate of 55% and the all-industry rate of 47%. Youths (aged 15 to 24) made up almost one-third of jobholders in business support services — twice the rate for all service industries (17%) and for all industries combined (15%).

In 2004, workers in the industry earned on average $12.45 an hour, much less than the service sector average of $18.10 and the overall average of $18.50. Also, 85% of workers had short job tenure — five years or less, compared with 55% for all service industries and 53% for all industries combined. The generally low wages likely contribute to high labour turnover.

The common perceptions that the industry has a relatively high concentration of part-time and temporary jobs, a higher student-worker ratio, or a high concentration of less educated workers are not corroborated by the data.

Indeed, the study found that in 2004, approximately 67% of all business support services workers had some postsecondary education or higher. The comparable figures were 65% for workers in all industries and 69% for those in all service industries.

Furthermore, the incidence of part-time work among business support workers (17% in 2004) was slightly lower than that found among workers in all industries (19%) or in all service industries (23%). In addition, only 10% of business support workers held a temporary job in 2004, compared with 13% for workers in all industries or in all service industries. Also, students accounted for only 9% of business support workers, about the same as for all service industries (10%) and for all industries (8%).

Definitions, data sources and methods: survey number 3701.

The article "Business support services" is now available in the May 2005 online edition of Perspectives on Labour and Income, Vol. 6, no. 5 (75-001-XIE, $6/$52).

For more information or to enquire about the concepts, methods or data quality of this release, contact Diane Galarneau (613-951-4626; diane.galarneau@statcan.gc.ca), Labour and Household Surveys Analysis Division.