Non-profit institutions and volunteering: Economic contribution, third quarter 2021

Released: 2022-01-17

Real gross domestic product increases for fifth straight quarter

Real gross domestic product (GDP) of non-profit institutions rose 1.6% in the third quarter, the fifth consecutive quarterly increase following widespread stay-at-home orders in the second quarter of 2020. Non-profit institutions serving businesses, households and governments each recorded higher levels of real GDP in the third quarter of 2021.

Similar to the real GDP of non-profit institutions, the economy-wide real GDP rose in the third quarter (+1.3%). Through the first three quarters of 2021, non-profit institutions real GDP has outperformed the economy-wide real GDP, on the strength of consistent increases in non-profit institutions serving governments and recovery growth of non-profit institutions serving businesses and households.

Chart 1 
Real gross domestic product, non-profit institutions

In the third quarter, real GDP for the non-profit sector, excluding non-profit institutions serving government, grew by 1.8%, as non-profit institutions serving businesses recorded a 2.3% increase, leading the overall non-profit institutions sector's GDP growth. A reduction of government-mandated closures and a return to full capacity in businesses throughout the country aided the higher real GDP levels.

Chart 2 
Real gross domestic product, non-profit institutions, by subsector

Real gross domestic product increases across non-profit institutions

In the third quarter, real GDP of non-profit institutions serving businesses increased 2.3%, the second consecutive quarterly gain. With fewer COVID-19 restrictions than during the second quarter of 2021, non-profit institutions serving businesses continued to grow, but their real GDP was 8.2% lower than the sector's peak in the fourth quarter of 2019.

Real GDP of non-profit institutions serving households rose 1.6% in the third quarter of 2021. Similar to non-profits serving businesses, non-profit institutions serving households remained lower than pre-pandemic highs, as their real GDP was 1.0% lower than the sector's peak in the third quarter in 2019.

The real GDP of non-profit institutions serving governments increased by 1.5% in the third quarter of 2021, following a 0.3% gain in the second quarter. The economic contribution of this subsector, made up mainly by hospitals and post-secondary education, was largely unaffected by the pandemic.

More jobs in health care and social services activities

The number of jobs in non-profit institutions rose by 1.5% in the third quarter, the fourth increase in the five previous quarters. Despite the higher levels of employment in recent quarters, the total number of jobs in non-profit institutions was 1.6% lower than the pre-pandemic high of the fourth quarter in 2019. Higher levels of employment in health care and social services led the boost in employment in the third quarter of 2021.

Jobs in health care activities rose 1.8% in the third quarter, the fourth consecutive quarterly increase. The number of jobs in non-profit health care activities has grown more than any other activity since the beginning of the pandemic.

In the third quarter, the number of jobs in social services activities increased 2.6%, the fifth consecutive increase. Employment in social services activities has increased 59.7% since the second quarter of 2020, but it is down 8.8% compared with the first quarter of 2020.

Chart 3 
Nominal gross domestic product, non-profit institutions, by activity

Nominal gross domestic product rises

Non-profit institutions nominal GDP was up 2.3% in the third quarter of 2021, following a 1.5% increase in the second quarter of 2021. Activities in health care (+2.6%) and education and research (+1.5%) primarily accounted for the higher GDP levels.

For non-profits excluding governments, nominal GDP increased 2.0%, with higher levels in business and professional associations (+3.0%), religious associations (+3.3%), and culture and recreation activities (+2.0%). Activities in social services recorded the lone decline among all activities, down 0.2%. Expressed at annualized rates, nominal GDP of the non-profit sector in the third quarter of 2021 was 8.5% of economy-wide GDP. Excluding government non-profits, nominal GDP was 2.1% of the total economy.

Products

The Economic accounts statistics portal, accessible from the Subjects module of the Statistics Canada website, features an up-to-date portrait of national and provincial economies and their structure.

The Latest Developments in the Canadian Economic Accounts (Catalogue number13-605-X) is available.

The User Guide: Canadian System of Macroeconomic Accounts (Catalogue number13-606-G) is available.

The Methodological Guide: Canadian System of Macroeconomic Accounts (Catalogue number13-607-X) is available.

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