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Employment services, 2016

Released: 2018-02-27

The employment services industry group reported an operating revenue of $13.4 billion in 2016, down 0.9% from the previous year. Operating expenses decreased by 0.4% to $12.9 billion, resulting in an operating profit margin of 3.6%, down from 4.1% in 2015.

The employment services industry group consists of establishments primarily engaged in permanent or temporary placements, executive searches, and co-employment staffing services.

In 2016, Ontario experienced a 5.8% growth in operating revenue and generated 58.5% of the share of total operating revenue at $7.8 billion. Alberta represented the second largest share of total operating revenue at 16.8%, with a 20.5% decline in operating revenue from the previous year. Quebec represented 13.5% of the share of total operating revenue, with a 5.9% growth.

As this industry group is labour-intensive, salaries and subcontract expenses make up the majority of total operating expenses, accounting for 86.3%, down slightly from 88.4% in 2015. Salaries, wages, commissions and benefits represented 58.9%, followed by subcontracts (27.4%).

Sales to businesses represented 85.9% of total sales in 2016, followed by sales to governments and not-for-profit organizations at 11.1%. The remaining 3.0% was split between sales outside of Canada (2.3%) and sales to individuals and households (0.7%).

In terms of sales by type of service, temporary staffing represented 50.4%, a decrease of 1.4 percentage points from 2015. Permanent placements and contract staffing services generated 40.3% of total sales, up from 38.9% in 2015. Other goods and services contributed the remaining 9.3%.

E-commerce sales represented 1.6% of total sales made by employment services firms in 2016.

  Note to readers

Data for 2014 and 2015 have been revised.

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