The Daily
|
 In the news  Indicators  Releases by subject
 Special interest  Release schedule  Information

Activities of foreign affiliates, 2011

Warning View the most recent version.

Archived Content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please "contact us" to request a format other than those available.

Released: 2013-11-01

Employment levels at foreign affiliates of Canadian enterprises rose 2.1% in 2011. This was the second consecutive yearly increase as employment continued to recover following the weakness in the global economy in 2008 and 2009.

Most of the strength in employment was from affiliates in the United States, where the number of employees at Canadian foreign affiliates rose 3.1%, while employment at Canadian affiliates in the European Union fell 2.0%. The "other countries" (+3.0%) grouping accounted for most of the remaining increase in employment. This set of countries, which includes a number of rapidly emerging economies, has seen its share of total Canadian foreign affiliates' employment rise from 21.1% to 30.7% over the past decade.

Employment growth at Canadian foreign affiliates was concentrated in the services sector (+6.7%), while employment in the goods producing sector declined 1.5% during the year. This was the fifth consecutive yearly increase for the service sector, during which time its share of employment at Canadian foreign affiliates rose from 36.6% to 46.1%.

Within the service sector, the finance and insurance (+17.9%) and wholesale trade (+17.6%) sectors both recorded robust gains during the year. The other notable increase came in the "other services" sector (+24.6%), a diverse aggregate made up primarily of real estate, health care, accommodation and food service industries.

With the exception of the mining and oil and gas extraction sector (+8.0%), employment in the overall goods producing sector declined. This weakness was led by a 4.5% drop in manufacturing employment, which was down for the fifth time in six years.

Following two consecutive yearly declines, total current dollar sales of goods and services at foreign affiliates of Canadian enterprises rose by 4.9% in 2011.

On a geographical basis, the largest increase was in the United States, where sales at foreign affiliates rose 6.5%. Sales in the European Union (+2.1%) and the "other countries" (+3.7%) region also rose during the year.

Sales in the services sector were up 13.1%, while those in the goods producing sector were flat. The largest increases came in the wholesale (+62.1%), finance (+16.1%) and "other services" (+37.4%) industries. Among the goods producing industries, only the mining and gas extraction sector (+4.2%) had higher sales during the year.

Chart 1  Chart 1: Activities of foreign affiliates – Sales and employment, 2001 to 2011 - Description and data table
Activities of foreign affiliates – Sales and employment, 2001 to 2011

Chart 1: Activities of foreign affiliates – Sales and employment, 2001 to 2011 - Description and data table

  Note to readers

The strong growth in Canadian direct investment abroad, evidenced since the mid-1990s, has given rise to interest in understanding the activities of foreign affiliates of Canadian enterprises. This release provides some perspective on the employment and sales of foreign affiliates, including both industry and geographical detail.

To be consistent with the international practice for measuring the activities of foreign affiliates (also known as Foreign Affiliate Trade Statistics), only the information on majority-owned foreign affiliates are included. For operational reasons, depository institutions and foreign branches of firms are currently excluded from the estimates. Sales and employment figures of majority-owned foreign affiliates represent total sales and employment, even if the Canadian ownership is less than 100%.

Employment is a volume measure that relates more closely to real economic activity. Sales approximate total gross income, and are subject to potentially large price effects. Current dollar sales reflect inflation in various countries as well as exchange rate effects, as they are converted to Canadian dollars (noon averages) for comparison purposes. Both employment and sales can be affected by changes in Canadian direct investment abroad, either through increased investment or divestment.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (613-951-4636; statcan.mediahotline-ligneinfomedias.statcan@canada.ca).

Report a problem on this page

Is something not working? Is there information outdated? Can't find what you're looking for?

Please contact us and let us know how we can help you.

Privacy notice

Date modified: