Activities of multinational enterprises in Canada and abroad, 2022 (actual) and 2023 (preliminary)
Released: 2024-12-06
In 2023, foreign and Canadian multinational enterprises (MNEs) in Canada employed 5.10 million people (+3.2%) and traded $1.2 trillion worth of goods internationally (+0.3%). Meanwhile, Canadian majority-owned affiliates abroad registered their highest levels of employment (2.04 million) and assets ($8.2 trillion) to date.
In addition, the latest data available indicate that in-house research and development (R&D) expenditures ($23.1 billion) and R&D personnel (139,900) at MNEs reached all-time highs in 2022.
Employment at multinationals in Canada and abroad continues to rise
The total number of employees at foreign and Canadian MNEs in Canada surpassed 5 million in 2023. Employment at foreign (2.67 million) and Canadian (2.44 million) MNEs both hit record highs. Over one-third (36.6%) of employment in the corporate sector was at MNEs in 2023, a share similar to what was recorded before the COVID-19 pandemic in 2019 (36.5%).
Employment at foreign MNEs in Canada rose by 3.0% (+78,500) in 2023, a deceleration after a 6.1% growth the previous year. In absolute terms, over one-quarter of the total increase in employment at foreign MNEs was from the professional, scientific and technical services sector (+22,100). The increase within this sector was mainly attributable to MNEs ultimately controlled from the United States (+17,200) and India (+5,800). At the same time, the number of employees at Canadian MNEs in Canada went up by 3.4% in 2023, with the largest increase coming from the manufacturing sector.
Outside of Canada, employment at foreign affiliates of Canadian MNEs (+2.7%) reached 2.04 million in 2023, led by affiliates in Asia and Oceania (+10.3%). On a sector basis, both services-producing (+3.3%) and goods-producing (+1.8%) sectors went up. In the services-producing sector, finance and insurance (+7.9%) and professional, scientific and technical services (+6.7%) contributed the most to year-over-year growth.
Chart 1
Employment at multinational enterprises in Canada and abroad, by type of multinational, 2018 to 2023
Assets held by Canadian multinational enterprises increase
The affiliates of Canadian MNEs abroad held $8.2 trillion in assets in 2023, up 6.5% from 2022. In 2023, the Canadian dollar depreciated against several major currencies, including the US dollar, the Euro and the British pound, contributing to an upward revaluation of assets when converted into Canadian dollars. Most assets held by the affiliates of Canadian MNEs abroad were in the finance and insurance sector ($5.1 trillion), primarily in North America and the Caribbean ($3.4 trillion) and Europe ($1.1 trillion).
In 2022, the latest year for which data on assets held by MNEs in Canada are available, the value of assets of Canadian MNEs increased by 7.4% to reach $10.5 trillion. This was driven by the finance and insurance sector (+7.8%), the assets of which exceeded $7 trillion for the first time.
The value of assets held by foreign MNEs in Canada went up by 2.7% to reach $3.2 trillion in 2022. Although foreign MNEs held fewer assets than Canadian MNEs, they held more assets in the manufacturing sector ($584.2 billion) than Canadian MNEs ($479.8 billion).
Chart 2
Value of assets held by multinational enterprises in Canada and abroad, by type of multinational, 2021 to 2023
Slight increase in merchandise trade by foreign multinationals
The overall value of merchandise trade by foreign MNEs in Canada was up slightly (+1.8%) in 2023 to reach $883.4 billion. The increase was led by higher imports of goods (+5.3%), despite a decline in the value of exports (-2.1%). Foreign MNEs in the manufacturing sector registered an increase in both the value of goods imports (+11.2%) and goods exports (+8.8%) in 2023. The growth was driven by motor vehicle manufacturers, namely from improved supply chains and higher prices. However, the overall decline in the value of goods exports by foreign MNEs was mostly the result of significantly lower prices of energy product exports in the mining, quarrying, and oil and gas extraction sector (-22.3%).
For Canadian MNEs, the total value of merchandise trade was down by 3.8% to $303.9 billion in 2023 due to a decline in both the imports (-5.1%) and exports (-3.2%) of goods. For exports, the decline was primarily due to lower values for energy products and potash, which affected trade by Canadian MNEs in Western Canada.
Chart 3
Year-over-year change in value of international merchandise trade, by type of multinational, 2021 to 2023
Multinationals account for most research and development activity in Canada
In the corporate sector, MNEs accounted for just over three-quarters (75.9%) of in-house R&D spending and for two-thirds (66.1%) of R&D personnel in Canada in 2022.
R&D spending by foreign MNEs increased 12.1% to reach $13.3 billion in 2022, outpacing growth by Canadian MNEs (+8.6% to $9.8 billion). For both foreign and Canadian MNEs, the increase in R&D expenditures was led by the professional, scientific and technical services sector.
Chart 4
In-house research and development expenditures, by type of multinational, corporate sector, 2014 to 2022
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Note to readers
New this year
With this release, the Activities of Canadian Multinational Enterprises Abroad program incorporates changes starting with reference year 2018. Previously, the data were largely derived from a weighted sample survey. The population of majority-owned affiliates of Canadian multinational enterprises abroad is now covered by supplementing unweighted survey data with administrative and publicly available data. As a result, comparisons between years before and after reference year 2018 should be done with caution. Additional information is available on the program page for Activities of Canadian Multinational Enterprises Abroad.
Release notes
This release integrates analyses from both the Activities of Multinational Enterprises in Canada and Activities of Canadian Multinational Enterprises Abroad programs under the broad framework of multinational enterprises.
Activities of multinational enterprises in Canada cover foreign multinationals (firms in Canada controlled by a foreign parent) and Canadian multinationals (Canadian-controlled firms with a foreign affiliate).
Activities of Canadian multinational enterprises abroad cover affiliates abroad that are Canadian majority owned. The figures represent the total sales, employment and assets of those affiliates. These affiliates also include those who are ultimately controlled by foreign enterprises. As such, a slight share of worldwide activities of Canadian multinationals can be ultimately controlled from abroad, a common practice at the international level.
The Web application "Activities of Multinational Enterprises: Interactive Tool" has been developed to allow users to quickly, easily and efficiently browse these data.
"Canadian majority-owned affiliates abroad," "affiliates abroad" and "affiliates of Canadian multinationals abroad" are used interchangeably.
The most recent reference year for which data are available on the affiliates of Canadian multinationals abroad is 2023.
Data on the Activities of Multinational Enterprises in Canada for 2023 are preliminary. Selected activities, including gross fixed capital formation, number of jobs and merchandise trade, are available for this reference year.
The term "employment" represents the "number of jobs" in the Activities of Multinational Enterprises in Canada data tables.
The primary statistical unit used in the provincial merchandise trade analysis is the establishment level. All other variables are presented at the enterprise level.
Products
The Methodological Guide: Canadian System of Macroeconomic Accounts (13-607-X) is available.
The User Guide: Canadian System of Macroeconomic Accounts (13-606-G) is also available. This publication will be updated to maintain its relevance.
Contact information
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