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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.

Contact information

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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