Tuesday, May 31, 2005

SPOTLIGHT: Call centres

Five-fold jump in jobs

THE BUSINESS support services industry, of which telephone call centres form a major component, has recorded unparalleled growth during the past two decades, according to a new study.

Between 1987 and 2004, employment in this industry jumped more than five-fold from 20,000 to 112,000. This gain far exceeded the 37% increase in all service industries and the 29% rise in overall employment.

This industry’s growth is the result of several factors: huge advances in information and telecommunications technology, especially low-cost digital technology; increased telemarketing; and changes in business practices, including more outsourcing and contracting-out.

The industry was thrust into the limelight recently by two events related to telephone call centres. 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.

Tsunami disaster

On the other hand, the industry's role in generating donations in response to the recent Asian tsunami disaster 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. 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.

Close to one-half of employment was located in Ontario, and only 9% in Quebec. Gains in Atlantic Canada’s share appear to have come at the expense of declines in Quebec, the Prairies and British Columbia.

Women and youth

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 rate of 55% for all services and a rate of 47% for all industries.

Young people aged 15 to 24 made up almost one-third of jobholders in business support services. This was twice the rate for all service industries and for all industries combined.

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.

You can read the full article "Business support services" on our website.

For more information, contact Diane Galarneau (613-951-4626), Labour and Household Surveys Analysis Division.

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© 2004, 2005 Statistics Canada.