Activities of foreign affiliates, 2010

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Employment levels at foreign affiliates of Canadian enterprises were up 3.8% in 2010. This followed two years of declines in employment, reflecting the weakness in the global economy in 2008 and 2009. Despite stronger results in 2010, employment remained below 2007 levels.

Canadian foreign affiliates' employment gains in the goods producing sector (+5.6%) outpaced those in the services sector (+1.5%) in 2010. Manufacturing registered its first job gains since 2005, led by automobiles and technology. Employment in the mining and oil and gas extraction sectors recovered from a 9.5% decline in 2009 with a 4.6% growth. On the services side, the wholesale and retail sectors led the increases in employment.

Geographically, employment gains at foreign affiliates of Canadian enterprises were weaker in the United States and the European Union than in the rest of the world in 2010, a trend observed over most of the last 10 years. In 2010, the "other countries" region posted employment gains of 8.2%, compared with 3.9% for the European Union and 1.1% for the United States.

Nevertheless, the United States still accounted for the largest share of employment at Canadian foreign affiliates at 49.1% in 2010, down from 62.3% in 2000. Most of the US decline has been offset by growth in the "other countries" region, which accounted for 31.8% of total employment at Canadian foreign affiliates in 2010. Since 2000, foreign affiliate employment has doubled in the "other countries" region, relative to a 35.7% gain in the European Union and a 0.7% decline in the United States.

Total current dollar sales of goods and services by foreign affiliates of Canadian enterprises fell for a second straight year, down 2.2% in 2010. This was largely because of a stronger Canadian currency in 2010, which reduced the Canadian dollar value of such sales.

Sales of Canadian foreign affiliates were down across most industries as well as for both goods and services, but there were a few notable exceptions. Sales in the mining and oil and gas extraction sectors rose 7.3%, partly reflecting large increases in the global price of oil. Sales of metallic minerals, gold in particular, were also up. Transportation services were up 31.2%, while all other services were down.

Geographically, Canadian foreign affiliates' sales were up 8.5% for the "other countries" region in 2010, compared with declines in the United States (-4.8%) and the European Union (-13.4%). Since 2000, sales have risen 159.6% in the "other countries" region, relative to a 7.9% growth in the European Union and a 3.7% reduction in the United States. The US share of Canadian foreign affiliate sales has correspondingly declined to 49.5% in 2010 from 64.7% in 2000.