Operating revenues in the employment services industry group fell 1.7% to $24.3 billion in 2024. This was the only annual drop recorded since comparable data became available in 2013, excluding the downturn experienced after the onset of the COVID-19 pandemic in 2020. This industry group includes employment placement agencies and executive search services, temporary help services, and professional employer organizations, which provide expertise in supplying temporary staff, placing applicants and providing human resource management services.
The decrease in 2024 was driven in part by growing softness in the labour market, marked by declining job vacancies throughout 2024. This trend has meant a dampened demand for staffing and recruitment services, which depend on the successful placement of workers.
Operating expenses in the industry group declined 0.8% to $23.2 billion in 2024, at a slower rate than operating revenues. This caused the operating profit margin to narrow further, falling to 4.3% in 2024. As in previous years, the largest proportions of expenditures were labour-related—led by salaries, wages, commissions and benefits (53.7%), and subcontracts (33.7%).
Ontario (54.4%) remained the largest contributor to operating revenue in the industry group in 2024, followed by Quebec (17.4%), Alberta (14.0%) and British Columbia (10.5%). The order of this provincial distribution of revenue was unchanged from 2023.
Sales to businesses represented 79.6% of total sales in 2024, climbing from 79.3% in 2023 and reversing a five-year downward trend in their share. Conversely, the share of sales to the public sector fell in 2024 after four consecutive increases, declining to 14.2% from 15.1% a year earlier. International sales (4.4%) and sales to individuals (1.9%) made up the smallest shares of total sales in 2024.
Temporary staffing services continued to represent the largest portion of total sales, though their share declined slightly to 48.2% in 2024. Permanent placements and contract staffing services accounted for 42.7% of sales, while other services made up the remaining 9.1%.
Looking ahead
Following weak performance in 2024, the employment services industry group may face further challenges in 2025. While demographic shifts and immigration continue to reshape labour supply, the cumulative effects of economic uncertainty, technological disruption and evolving workplace expectations may further redefine demand for employment services.
Declining job vacancy rates through the first two quarters of 2025, slowing population growth and broader economic headwinds (including slower gross domestic product growth and cautious business investment) could contribute to falling demand for employment services.
While the overall demand for employment services may soften because of economic and demographic factors, the ongoing need to address skills mismatches and workforce shortages should help buoy the industry group in 2025. This, paired with the retirement of large cohorts of baby boomers, will continue to pose challenges to the labour supply, ensuring that workforce availability will remain critical. Detailed financial statistics on the employment services industry group for 2025 will be released following survey data collection in 2026.
Note to readers
Data for 2022 and 2023 have been revised.
These and other data related to business and consumer services can be found at the Business and consumer services and culture statistics portal.
Contact information
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