Employment services, 2015
The employment services industry group generated $13.3 billion in operating revenue in 2015, down 0.3% from 2014. Operating expenses declined by 0.7%, resulting in an operating profit margin of 4.1% in 2015, up from 3.7% in 2014.
The employment services industry group consists of establishments primarily engaged in permanent placement, executive search, contract staffing, temporary staffing and co-employment staffing services.
As this industry group is labour-intensive, salaries and subcontract expenses make up the majority of the expenses, accounting for 88.3% of total operating expenses. Salaries, wages and benefits accounted for 60.2% of total operating expenses, followed by subcontract expenses at 28.1%.
Coinciding with the decline in the oil and gas industry, the resource-based provinces reported lower operating revenue for employment services in 2015. Operating revenue in Alberta decreased by 14.1% to $2.8 billion. Saskatchewan (-5.0%) and Newfoundland and Labrador (-3.6%) also reported lower operating revenue compared to 2014.
Across Canada, most of the industry operating revenue continued to be generated by Ontario firms (54.6%), followed by Alberta (21.2%) and Quebec (12.1%).
In terms of sales by type of service, temporary staffing services continued to be the largest contributor to the industry group's sales; however, its share in 2015 declined from 52.7% in 2014 to 51.3%. Permanent placement and contract staffing services generated 39.2% of total sales, up from 37.6% in 2014. Other sales of goods and services contributed the remaining 9.4%.
The business sector, which is the primary client of the employment services industry group, accounted for 86.8% of total sales in 2015. The government, not-for-profit organizations and public institutions sector accounted for 10.4% of total sales. The remainder of sales (2.8%) was generated by individuals and households and clients outside Canada, combined.
Note to readers
Data for 2013 and 2014 have been revised.
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; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).
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