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Employment services industry
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The employment services industry experienced strong growth in 2006, with operating revenues increasing by 8.6% to $8.0 billion. Employment placement and staffing agencies benefited from a tight labour market and a generally strong economy, particularly in Western Canada.
Growth in operating revenues was very strong in Western Canada, with Manitoba, Saskatchewan, Alberta, and British Columbia all posting double-digit increases over 2005. In contrast, Central Canada experienced only slight growth.
Ontario continues to account for the majority of industry operating revenues with a 57% share in 2006. However, Ontario's share has steadily declined from 62% in 2001. During the same period, British Columbia saw its share increase from 5% to 7%, and Alberta's share climbed from 13% to 18%. With the 2006 gains, Alberta overtook Quebec and now trails only Ontario in terms of operating revenues generated.
The industry's operating expenses grew at a slightly faster pace than operating revenues, resulting in a slight decline in the operating profit margin from 3.7% in 2005 to 3.5% in 2006.
In 2006, fully 70% of industry operating revenues were generated from temporary staffing services, with 28% from permanent placement and contract staffing services, and the remaining 2% from other services. Although temporary staffing services accounted for the bulk of operating revenues earned, the share declined considerably from 77% in 2005. Revenue gains for the industry in 2006 came almost entirely from permanent placements and contract staffing services.
Available on CANSIM: table 361-0001.
Definitions, data sources and methods: survey number 4718.
Data for the 2006 Survey of Service Industries: Employment Services are now available.
For more information, or to enquire about the concepts, methods or data quality of this release, contact Wayne Rowsome (613-951-5805; wayne.rowsome@statcan.gc.ca) or Luc Provençal (613-951-1960; fax: 613-951-6696 luc.provencal@statcan.gc.ca), Service Industries Division.
