Income and Expenditure Accounts Technical Series
Provincial and Territorial Culture Indicators, 2010 to 2014

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Release date: May 11, 2016

Acknowledgements

Provincial and Territorial Culture Indicators, 2010 to 2014

This paper outlines the Provincial and Territorial Culture Indicators (PTCI) developed by Statistics Canada. The PTCI are timely economic estimates of culture and sport in Canada and were developed as an extension to the more comprehensive Provincial and Territorial Culture Satellite Account. The PTCI cover culture (including arts and heritage) and sport across Canada in terms of output, gross domestic product and employment for the years 2010 to 2014.

The development of the PTCI is funded by the Department of Canadian Heritage, the provincial and territorial governments (through the Federal-Provincial/Territorial Table on Culture and Heritage) and its many partners:

This report was prepared by the staff of the Satellite Accounts and Special Studies Section, National Economic Accounts Division, Statistics Canada. We wish to acknowledge the ongoing support of staff from the Industry Accounts Division and National Economic Accounts Division of Statistics Canada, and the Department of Canadian Heritage along with its broad network of funding partners.

1. Introduction

The Provincial and Territorial Culture Indicators (PTCI) were developed by Statistics Canada with the support of the Department of Canadian Heritage, the provincial and territorial governments (through the Federal-Provincial/Territorial Table on Culture and Heritage) and its many partnersNote 1 to provide more current estimates of culture and sport beyond those in the 2010 Provincial and Territorial Culture Satellite Account (PTCSA). The PTCI provide timely information to facilitate ongoing monitoring and analysis of culture and sport in Canada and the provinces and territories. The indicators measure trends from 2010 to 2014 for the culture and sport domains of the PTCSA. Culture and sport estimates are mutually exclusive of one another.

The PTCI can be used to assess the current economic state of culture and sport in Canada, to analyze developments in terms of trends, and to support policy and strategic decisions. The PTCI show the relative importance of culture in Canada's economy, which components of culture are affected the most from growth or decline, and what percentage of activity is attributable to each culture domain. Comparative analysis can be made with other industries, among provinces and territories and relative to the Canadian economy as a whole.

The PTCI are benchmarked to the 2010 PTCSANote 2 and are projected forward using supply and use tablesNote 3 for 2011 and 2012 and indicators from the Canadian System of Macroeconomic Accounts (CSMA) for 2013 and 2014. Both the PTCSA and PTCI provide estimates (levels, growth rates and shares) of gross domestic product (GDP), output and jobs. The PTCI, however, are a more timely and cost effective alternative to a full update of the PTCSA.

It is important to note that all PTCI GDP and output figures are at basic prices in nominal terms. Comparisons with economy-wide national, provincial and territorial GDP can be made by removing taxes less subsidies on products and imports from GDP in nominal terms and at market prices.Note 4

The data can be used by stakeholders in the field of culture, such as federal and provincial government officials, researchers and academics, and they are also available to international organizations, journalists and businesses.

Indicators are projected estimates of a variable (e.g., GDP, output, jobs) based on a benchmark. The estimates are projected forward and/or backwards using available data sources. The data used to project the estimate serves as a proxy and should be similar in concept to the variable being projected. The overall purpose of an indicator is to produce more timely estimates when full compilation is not possible due to limits in data availability.

The PTCI measure the economic activity in culture and sports from two perspectives, the product perspective and the industry perspective.

From the product perspective, the PTCI measure the production of culture and sports goods and services and their contribution to output, GDP and jobs for each province and territory, regardless of whether they were made by establishments in culture and sport or non-culture and non-sport industries. For a list of all culture and sport products, see Appendix D.

From the industry perspective, the PTCI measure the output, GDP and jobs resulting from production from establishments classified as belonging to the culture and sport industries. This includes their production of culture, non-culture, sport and non-sport products. For a list of all culture and sport industries, see Appendix E.

The product perspective is unique to the PTCI and PTCSA, and therefore, there is no comparable figure for the economy as a whole. The industry perspective of the PTCI is more comparable to GDP by industry.

The PTCI are produced for the following culture domains: heritage and libraries, live performance, visual and applied arts, written and published works, audio-visual and interactive media, sound recording, education and training, governance, funding and professional support and multi.Note 5 They are also produced for the sport domain.

This report summarizes the basic concepts and definitions and the main sources and methods underlying the PTCI. This information is also intended to clarify the strengths and limitations of the PTCI and to indicate how they can be effectively used and analyzed. Section 2 details the scope of the PTCI, as well as data limitations. Sections 3 and 4 provide an overview of the results of the PTCI for each province and territory from both the product and industry perspectives and focus on data from the most recent available year. Section 5 shows summary data tables of the PTCI from the product and industry perspectives. Detailed PTCI data tables are available on CANSIM. Section 6 explains data revisions at Statistics Canada. Finally, section 7 provides a conclusion focusing on the uses and merits of the PTCI.

2. Scope and data limitations

The scope of the PTCI is similar to that of the PTCSA. It covers all culture and sport goods and services produced in the economy by establishments in culture, non-culture, sport and non-sport industries. It also highlights culture and sport industries and the goods and services (both culture and non-culture) that they produce—measuring both market and non-market output. However, the PTCI does not include a valuation of volunteering activities.

The 2010 PTCSA has highlighted further areas for improvement such as the craft, library, archive and film and video sub-domains. These improvements have not yet been included in the PTCI. They will be addressed with the next update of the PTCSA, tentatively scheduled for release in 2017. All improvements to the PTCSA will be incorporated into future releases of the PTCI.

Caution must be used in analyzing sports in British Columbia, as the Winter Olympic Games and Para-Olympic Games were held in Vancouver and surrounding areas in 2010. These Olympics have been captured in PTCI for 2010 and may be reflected in sports content ratios used for projection of subsequent years. Every effort was made to determine the extent to which these estimates have been affected. However, at this time, it is difficult to determine the effects of the Olympics on the sport content ratios of the 2010 PTCSA. So, it is possible the GDP and output may be overestimated. The full extent of how the Olympics have impacted these indicators will not be known until the next update of the PTCSA and PTCI when more complete data are available.

3. Analysis: the product perspective

The analysis that follows focuses on the product perspective of the PTCI, that is, the production of culture and sports goods and services (in nominal terms) and their contribution to output, GDP and jobs in both culture and non-culture industries and sport and non-sport industries.

Culture and sport products in Canada

Culture GDP in Canada rose 2.8% in 2014 following a 4.3% gain in 2013. Culture GDP increased in all provinces and territories except Northwest Territories (-2.4%), New Brunswick (-1.6%) and Prince Edward Island (-0.6%). Growth in culture GDP was higher than the national average in Ontario, Manitoba, Saskatchewan and British Columbia. Nationally, economy-wide GDP increased 4.2% in 2014, compared to 3.9% in 2013.

Audio-visual and interactive media (+4.7%) contributed more than half of the overall growth in culture GDP in Canada in 2014. Culture GDP in most domains increased, led by sound recording (+7.9%). The only decrease was in written and published works (-1.0%).

Sport GDP increased in all provinces and territories except Northwest Territories (-2.6%) and New Brunswick (-0.8%), with Alberta (+4.7%) posting the largest gain. Nationally, sport GDP rose 2.8% in 2014, following a 5.4% gain in 2013.

Culture jobs in Canada decreased 0.8% in 2014 after increasing 1.1% in 2013. Culture jobs in all provinces except Newfoundland and Labrador and Prince Edward Island were lower, while those in the territories were higher or unchanged. Ontario (-0.6%), British Columbia (-1.7%) and Manitoba (-4.7%) contributed the most to the decline in culture jobs in Canada. Nationally, total jobs increased 0.6% in 2014, following a 1.3% gain in 2013.

All domains except visual and applied arts (+1.0%), governance, funding and professional support (+1.3%) and sound recording (+0.6%) contributed negatively to job growth in Canada.

Sport jobs declined 2.8% in Canada in 2014, largely due to job losses in Ontario (-3.4%) and British Columbia (-5.5%).

The difference in growth between culture and sport GDP and culture and sport jobs in 2014 may be the result of several factors, such as changes in production costs, prices of goods and services, labour productivity and hours worked per job. Furthermore, growth in nominal GDP (or contraction) may not immediately lead to increases (or decreases) in employment. That is, there may be a lag between economic output and resulting changes in the labour force.

Newfoundland and Labrador

Culture GDP in Newfoundland and Labrador rose 0.9% in 2014, a similar pace to 2013, with audio-visual and interactive media (+2.8%) contributing the most to the increase. Sport GDP increased 1.5% in 2014, following a 1.3% gain in 2013. Economy-wide provincial GDP fell 4.7% in 2014.

Culture jobs were unchanged in 2014 following a 5.9% decline in 2013. Sport jobs rose 4.8% after declining 2.8% the previous year. Overall, total jobs in Newfoundland and Labrador decreased 1.8% in 2014.

Prince Edward Island

Prince Edward Island’s culture GDP contracted 0.6% in 2014 following a 1.7% gain in 2013. Written and published works (-6.8%) contributed to the decline in culture GDP. Sport GDP rose 0.9% in 2014, the same pace as the previous two years. Economy-wide provincial GDP grew 3.7% in 2014.

Culture jobs rose 1.4% following job gains of 9.9% the previous year. Sport jobs were 1.1% lower, after increasing 2.8% in 2013. Overall, the total number of jobs in Prince Edward Island rose 0.3% in 2014.

Nova Scotia

Culture GDP in Nova Scotia grew 2.1% in 2014 after increasing 2.7% in 2013, with visual and applied arts (+7.4%) contributing the most to the growth. Sport GDP rose 0.4% in 2014 after increasing 0.8% the previous year. Economy-wide provincial GDP advanced 1.2% in 2014.

Culture jobs declined 1.8% following job gains the previous three years. Job losses were observed in most culture domains. Sport jobs were 4.2% lower following a 9.6% gain in 2013. Overall, total jobs in the province decreased 1.1% in 2014.

New Brunswick

Culture GDP in New Brunswick contracted 1.6% in 2014 following a 2.5% increase the previous year. Visual and applied arts (-8.7%) contributed the most to the decline in culture GDP. Sport GDP decreased 0.8% following a similar decline in 2013. Economy-wide provincial GDP grew 0.2% in 2014.

Culture jobs decreased 1.6%, after increasing 8.2% in 2013. Sport jobs rose 1.3% following a 4.1% gain the previous year. Overall, total jobs in New Brunswick edged down (-0.1%) in 2014.

Quebec

Quebec’s culture GDP grew 2.4% in 2014, following a 4.0% gain in 2013, with audio-visual and interactive media (+4.1%) contributing the most to the increase. Sport GDP rose 3.1% after increasing 6.4% the previous year. Economy-wide provincial GDP grew 2.3% in 2014.

Culture jobs decreased 0.2% in 2014 after increasing 0.3% the previous year. Sport jobs grew 0.8% after increasing 6.6% in 2013. Overall, total jobs in Quebec rose 0.3% in 2014.

Ontario

Ontario’s culture GDP increased 3.1% in 2014 following a 5.1% gain in 2013. Growth was driven by audio-visual and interactive media (+5.5%). Sport GDP rose 2.5% following a 5.6% gain the previous year. Economy-wide provincial GDP increased 4.2% in 2014.

Culture jobs in Ontario were down 0.6% in 2014 after increasing 2.5% the previous year. Sport jobs decreased 3.4% following a 2.4% increase in 2013. Overall, total jobs in Ontario rose 0.4% in 2014.

Manitoba

Culture GDP in Manitoba rose 3.1% in 2014, following growth of 4.9% in 2013. About half of the increase in 2014 was due to growth in written and published works (+6.0%). Sport GDP grew 2.5% after increasing 6.5% each of the previous two years. Economy-wide GDP rose 3.2% in 2014.

Culture jobs decreased 4.7% following a 3.1% gain in 2013. Sport jobs fell 11.3% after increasing 11.5% the previous year. Overall, total jobs in Manitoba grew 0.2% in 2014.

Saskatchewan

Saskatchewan’s culture GDP grew 3.3% following a gain of 1.1% in 2013. Culture GDP in all culture domains rose, with visual and applied arts (+6.2%) and written and published works (+6.9%) largely contributing to the increase. Sport GDP grew 3.6% after increasing 6.3% the previous year. Economy-wide provincial GDP fell 1.2% in 2014.

Culture jobs decreased 2.9% following a 2.1% increase in 2013. Sport jobs slipped 0.6% after increasing 5.6% in 2013. Overall, total jobs in Saskatchewan edged up (+0.1%) in 2014.

Alberta

Alberta’s culture GDP rose 2.7% in 2014, following a 3.6% gain in 2013. Visual and applied arts (+6.6%) and audio-visual and interactive media (+3.5%) largely contributed to the increase in 2014. Sport GDP grew 4.7% in 2014 but growth has slowed every year since 2011. Economy-wide provincial GDP rose 9.2% in 2014.

Culture jobs receded 0.5% after decreasing 3.4% in 2013. Sport jobs were 0.4% lower in 2014, following a 0.7% decline in 2013. Overall, total jobs in Alberta grew 2.0% in 2014.

British Columbia

Culture GDP in British Columbia grew 3.6% in 2014, following similar increases in 2012 and 2013. Culture GDP in most domains increased, with audio-visual and interactive media (+5.5%) and visual and applied arts (+7.8%) largely contributing to the overall gain. Sport GDP rose 2.6% after increasing 4.1% in 2013. Economy-wide provincial GDP grew 4.4% in 2014.

Culture jobs declined 1.7% after edging up (+0.1%) in 2013. Sport jobs fell 5.5% after increasing 4.3% the previous year. Overall, total jobs in British Columbia rose 0.9% in 2014.

Yukon

Culture GDP in Yukon rose 0.6% in 2014, following a similar gain in 2013. Visual and applied arts (+6.2%) contributed the most to the increase. Sport GDP grew 1.6% in 2014 after increasing 5.0% the previous year. Economy-wide GDP in the territory rose 2.0% in 2014.

Culture jobs increased 3.4% after decreasing in each of the previous three years. Sport jobs rose 4.6% after declining 1.8% in 2013. Overall, total jobs in Yukon grew 6.4% in 2014.

Northwest Territories

Culture GDP in the Northwest Territories retracted 2.4% in 2014, following a 2.6% gain in 2013. Governance, funding and professional support (-4.2%) largely contributed to the decline. Sport GDP decreased 2.6% after increasing 1.3% in 2013. Economy-wide GDP in the territory rose 5.4% in 2014.

Culture jobs grew 5.2% in 2014 after increasing 1.2% in 2013. Sport jobs increased 2.2%, following a 1.1% decline the previous year. Overall, total jobs in the Northwest Territories increased 3.1% in 2014.

Nunavut

Nunavut’s culture GDP grew 2.2% in 2014 following a 1.5% gain in 2013, with governance, funding and professional support (+1.7%) contributing the most to the overall growth. Sport GDP increased 1.6%, following a 1.7% gain in 2013. Economy-wide GDP in the territory grew 6.0% in 2014.

Culture jobs were unchanged in 2014, following a 2.1% decline in 2013. Sport jobs decreased 1.4%, following job losses of 6.7% the previous year. Overall, total jobs in Nunavut rose 0.4% in 2014.

4. Analysis: the industry perspective

The analysis that follows focuses on the industry perspective of the PTCI, that is, the production of goods and services in culture and sport industries only (in nominal terms), and their contribution to output, GDP and jobs for each province and territory.

Culture and sport industries in Canada

GDP of culture industries rose 3.5% nationally in 2014, following a 4.4% gain in 2013. GDP of culture industries increased in all provinces and territories except Northwest Territories (-2.7%). British Columbia (+4.2%) had the strongest growth, followed by Ontario (+3.8%) and Alberta (+3.3%). Nationally, economy-wide GDP increased 4.2% in 2014, compared to 3.9% in 2013.

Audio-visual and interactive media (+4.9%) and visual and applied arts (+5.2%) were the largest contributors to growth in Canada. GDP of culture industries increased in all domains except written and published works (-1.5%).

GDP of sport industries in Canada grew 2.6% after increasing 4.9% in 2013. GDP of sport industries rose in all provinces and territories except Northwest Territories (-3.4%), New Brunswick (-0.8%) and Nunavut (unchanged), with Alberta (+4.6%) registering the largest gain.

Jobs in culture industries in Canada decreased 0.4%, following a 1.5% gain the previous year. Jobs in culture industries in Manitoba fell 4.6%, while growth was strongest in Northwest Territories (+4.8%) and Yukon (+3.0%). Nationally, total jobs increased 0.6% in 2014, following a 1.3% gain in 2013.

Job losses in audio-visual and interactive media (-3.5%), written and published works (-2.0%) and live performance (-3.4%) largely contributed to the overall decline in Canada, some of which was offset by job gains in visual and applied arts (+1.7%).

Jobs in sport industries decreased 2.9% in 2014, following job gains of 3.6% in 2013, with most of the job losses occurring in Ontario (-3.4%) and British Columbia (-5.8%). Jobs in sport industries in Manitoba fell 11.5%, while those in Yukon and Newfoundland and Labrador increased 5.8% and 4.9%, respectively.

The difference in growth between GDP and jobs in culture and sport industries in 2014 may be the result of several factors, such as changes in production costs (i.e., inflation/deflation), labour productivity and hours worked per job. Furthermore, economic growth (or contraction) may not immediately lead to increases (or decreases) in employment. That is, there may be a lag between economic performance and resulting changes in the labour force.

Newfoundland and Labrador

GDP of culture industries in Newfoundland and Labrador grew 1.5% in 2014 after increasing 0.8% in 2013. Visual and applied arts (+6.2%) contributed the most to the growth. GDP of sport industries rose 0.8%, following a 1.3% gain the previous year. Economy-wide provincial GDP fell 4.7% in 2014.

Jobs in culture industries increased 0.6% after falling 5.3% in 2013. Jobs in sport industries increased 4.9% in 2014 after decreasing 3.0% the previous year. Overall, total jobs in Newfoundland and Labrador decreased 1.8% in 2014.

Prince Edward Island

GDP of culture industries in Prince Edward Island grew 0.6% in 2014 after increasing 1.0% in 2013. GDP of sport industries grew 0.4%, half the pace of 2013. Economy-wide provincial GDP grew 3.7% in 2014.

Jobs in culture industries advanced 2.0%, following job gains of 4.3% the previous year. Jobs in sport industries were down 1.9%, following growth of 3.4% in 2013. Overall, total jobs in Prince Edward Island rose 0.3% in 2014.

Nova Scotia

Nova Scotia’s GDP of culture industries grew 2.6% in 2014 after increasing 1.5% the previous year. Visual and applied arts (+6.1%) contributed the most to the growth. GDP of sport industries edged up (+0.1%), following a 0.4% gain in 2013. Economy-wide provincial GDP advanced 1.2% in 2014.

Jobs in culture industries decreased 1.4%, following job gains of 1.8% in 2013. Jobs in sport industries fell 4.3% after increasing 9.1% the previous year. Overall, total jobs in Nova Scotia decreased 1.1% in 2014.

New Brunswick

GDP of culture industries in New Brunswick rose 0.9% in 2014, half the pace of 2013. GDP of sport industries decreased 0.8% after receding 1.2% the previous year. Economy-wide provincial GDP grew 0.2% in 2014.

Jobs in culture industries were down 1.4% following job gains of 7.7% in 2013. Jobs in sport industries rose 1.5% after increasing 3.4% the previous year. Overall, total jobs in New Brunswick edged down (-0.1%) in 2014.

Quebec

GDP of culture industries in Quebec grew 3.2% in 2014, following 4.7% growth in 2013, with audio-visual and interactive media (+3.9%) and visual and applied arts (+5.0%) contributing the most to the overall gain. GDP of sport industries rose 2.4% after increasing 6.2% the previous year. Economy-wide provincial GDP grew 2.3% in 2014.

Jobs in culture industries increased 0.3%, following 0.4% growth in 2013. Jobs in sport industries rose 0.7% after increasing 6.6% in 2013. Overall, total jobs in Quebec rose 0.3% in 2014.

Ontario

GDP of culture industries in Ontario advanced 3.8% in 2014, after increasing 4.9% in 2013. GDP of culture industries in sound recording jumped 10.1%. GDP of sport industries rose 2.5%, following a 4.9% gain the previous year. Economy-wide provincial GDP increased 4.2% in 2014.

Jobs in culture industries decreased 0.3%, following job gains of 3.1% in 2013. Jobs in sport industries fell 3.4% after increasing 2.4% the previous year. Overall, total jobs in Ontario rose 0.4% in 2014.

Manitoba

Manitoba’s GDP of culture industries grew 2.7% in 2014, following a 4.7% gain in 2013. Written and published works (+6.0%) largely contributed to the increase in 2014. GDP of sport industries rose 2.5% after increasing 6.3% in 2013. Economy-wide GDP rose 3.2% in 2014.

Jobs in culture industries decreased 4.6%, following job gains of 2.7% the previous year. Jobs in sport industries fell 11.5%, reversing the 11.5% growth observed in 2013. Overall, total jobs in Manitoba grew 0.2% in 2014.

Saskatchewan

GDP of culture industries in Saskatchewan advanced 3.1% in 2014 after increasing 1.9% in 2013, with written and published works (+8.4%) contributing the most to the overall growth. GDP of sport industries grew 3.3%, following a 5.2% increase the previous year. Economy-wide provincial GDP fell 1.2% in 2014.

Jobs in culture industries decreased 1.2%, following job gains of 2.4% in 2013. Jobs in sport industries edged down (-0.1%) following growth of 6.0% the previous year. Overall, total jobs in Saskatchewan edged up (+0.1%) in 2014.

Alberta

Alberta’s GDP of culture industries grew 3.3% in 2014, following a 4.5% gain in 2013. GDP of culture industries increased in all domains except written and published works (-5.8%). GDP of sport industries rose 4.6% after advancing 7.1% the previous year. Economy-wide provincial GDP rose 9.2% in 2014.

Jobs in culture industries increased 0.3%, following job losses of 2.5% in 2013. Jobs in sport industries decreased 0.4% after a flat 2013. Overall, total jobs in Alberta grew 2.0% in 2014.

British Columbia

GDP of culture industries in British Columbia rose 4.2% in 2014, following a 3.1% gain in 2013. Audio-visual and interactive media (+6.3%) and visual and applied arts (+7.7%) largely contributed to the growth. GDP of sport industries grew 2.3% after advancing 3.7% the previous year. Economy-wide provincial GDP grew 4.4% in 2014.

Jobs in culture industries were down 1.5% after increasing 0.4% in 2013. Jobs in sport industries fell 5.8%, following job gains of 4.6% the previous year. Overall, total jobs in British Columbia rose 0.9% in 2014.

Yukon

GDP of culture industries in Yukon grew 1.2% in 2014, following a flat 2013. Visual and applied arts (+6.6%) was the largest contributor to economic growth. GDP of sport industries rose 1.5%, following a 4.8% gain the previous year. Economy-wide GDP in the territory rose 2.0% in 2014.

Jobs in culture industries increased 3.0%, following job gains of 1.2% in 2013. Jobs in sport industries grew 5.8% after decreasing 1.9% the previous year. Overall, total jobs in Yukon grew 6.4% in 2014.

Northwest Territories

GDP of culture industries in the Northwest Territories fell 2.7% in 2014 after advancing 2.9% in 2013, with governance, funding and professional support (-4.5%) largely contributing to the decline. GDP of sport industries also fell 3.4%, following an increase of 1.2% the previous year. Economy-wide GDP in the territory rose 5.4% in 2014.

Jobs in culture industries rose 4.8% after job gains of 1.9% the previous year. Jobs in sport industries increased 2.1%, following a 1.0% decline in 2013. Overall, total jobs in the Northwest Territories increased 3.1% in 2014.

Nunavut

Nunavut’s GDP of culture industries advanced 2.0% in 2014 after increasing 1.7% in 2013. GDP of sport industries was unchanged, following gains of 3.0% in 2013. Economy-wide GDP in the territory grew 6.0% in 2014.

Jobs in culture industries edged down (-0.2%), following job losses of 2.1% in 2013. Jobs in sport industries declined 1.3% after falling 6.3% the previous year. Overall, total jobs in Nunavut rose 0.4% in 2014.

5. Data tables

Tables 1 to 4 include estimates of culture and sport from the product perspective. Tables 5 to 8 include estimates of culture and sport from the industry perspective. Table 9 includes the culture and sport shares of economy-wide GDP. Table 10 includes the culture and sport shares of the total number of jobs in the economy.

6. Revisions

Statistics Canada regularly carries out revisions in the CSMA, to allow for the inclusion of the most current information from censuses, surveys, administrative data, public accounts and other sources. All of the CSMA data, including supply and use tables, the provincial and territorial economic accounts and the Canadian productivity accounts are subject to revisions.

The PTCI will follow the same revision policy as the CSMA. With each update of the PTCI, the previously released data will be revised to incorporate the latest CSMA results. The PTCI will also be revised following every PTCSA update to incorporate new data and revise projection methodologies.

Two types of revisions affecting the PTCI are statistical revisions and comprehensive revisions. For a complete description of the various types of revisions, see Appendix C. Taxonomy of revisions.

Statistical revisions allow for the incorporation of more complete and comprehensive information. This includes, for example, accounting for newly-acquired data from annual surveys or administrative sources. These revisions are limited to every month or quarter within a given reference year, and on an annual basis, revising two to three years back, to incorporate new benchmark information.

Comprehensive revisions are conducted less frequently and allow the inclusion of improved estimation methods and data sources, the introduction of conceptual changes and new classifications, and the alignment towards international standards. Comprehensive revisions strengthen the overall quality of the program and are harmonized with those of the corresponding accounts in the integrated CSMA.

For example, the CSMA just completed a comprehensive revision released in 2015. The 2015 comprehensive revision focused on the integration of the Government Finance Statistics, the improved treatment of the defined benefit pension plans, improvements to the measurement of financial services purchased by households, and updated measures of national wealth. This resulted in revisions to PTCI source data.

The 2015 comprehensive revision also included a significant change to the way the input-output tables are presented. The new presentation is aligned with international standards found in most national statistical offices, and the account previously referred to as input-output tables are now referred to as supply and use tables. The supply and use tables better show the relationship between the supply of each product and its use. The supply = use identity for any given product is one of the fundamental elements of the macro-accounting framework. In addition to this presentational change, the internationally accepted term product now replaces commodity, used in the former presentation.

7. Conclusion

These PTCI are an important step forward to measure the economic contributions of culture and sport across Canada, from both the product and industry perspectives. Anchored to the framework established in the 2010 PTCSA, the PTCI make Canada one of the few countries with current economic indicators for culture and sport.

The PTCI provide more timely estimates of GDP, jobs and output which facilitate ongoing monitoring and analysis of culture and sport and related activities in Canada and the provinces and territories for use by governments, academics, international organizations and businesses alike.

Future releases of the PTCI will incorporate updates to the PTCSA, as well as estimates at the sub-domain level for years where supply and use tables are available.

Appendix A. Definitions and concepts

Culture and sport

Within the Provincial and Territorial Culture Indicators (PTCI), culture is defined as a creative artistic activity and the goods and services produced by this creative activity and the preservation of heritage.

Sport is defined as an individual or group activity, often pursued for fitness in leisure time, fun or competition. This includes recreational sports and physical activities, as well as professional, semi-professional or amateur sport clubs and independent athletes that are primarily engaged in presenting sporting events before an audience.

Sport does not include sport-themed products (sport magazines, fitness videos, etc.) that result from creative artistic activities. These would be included in culture.

Production and output

Production is the process of combining labour, capital, energy, material and service inputs to produce goods and services.

Output consists of those goods or services that are produced within an establishment that become available for use outside that establishment or in some special cases within the producing establishment. There are three types of output within the PTCI: market output and non-market output and for own final use. Market output consists of goods and services sold at an economically significant price, that is, a price that has a significant influence on the amounts that producers are willing to supply and the amounts that purchasers wish to buy. Non-market output comprises goods and services that are not sold on the market and are generally valued at cost. For instance, free art exhibits in which services are provided by volunteers would be considered non-market output. Output for own final use consists of products retained by the producer for their own final use as consumption or investment. Only market and non-market output are measured in the PTCI.

Goods and services

The distinction between goods and services is important. A good is a product that can be stocked or placed in inventory. An example of a good is photographic equipment or a book. A service, on the other hand, is generally consumed at the place and time it is bought. Services cover a wide and complex variety of products that are generally intangible in nature. An example of a service is admission to a live performance or a museum exhibition.

Valuation and pricing

Goods and services in the PTCI are valued at basic prices. The basic price of a good or service is its selling price before wholesale, retail and transportation margins and before product taxes like the sales taxes. This price reflects the revenues received by producers from the sale of these goods and services. This is different from the market prices which include the margins and taxes noted above to better reflect the price paid by the consumer of the culture good or service.

In order to illustrate the difference between the two consider the following example which decomposes the market price of a culture good/service ($63.25) into its components (basic price, retail margin and taxes).

$63.25 (culture good/service) = $45 (basic price) + $10 (retail margin) + $8.25 (15% HST)

The PTCI presents information at nominal or current prices. There is no attempt to estimate the volume or real growth of culture goods and services produced in a given year.

Culture products

The Canadian Framework for Culture Statistics (CFCS) uses a number of criteria to determine what is and is not a culture product. A product is determined to be culture if it satisfies the general definition of culture (noted above) and one or more of the following criteria:Note 6

  1. The product must have copyright protection potential.
  2. The product must support the creation, production, dissemination or preservation of culture.
  3. It adds to the content of a culture product.
  4. It preserves exhibits or interprets human or natural heritage.
  5. It provides culture training or educational services.
  6. It governs, finances, or supports directly culture.

In the context of the PTCI, and following the CFCS, culture goods are defined as original and mass-produced goods which contain culture content, resulting from creative artistic activity. A culture service, on the other hand, is defined to include creative services (which can, in turn, include copyright payments or receipts), content services (services that add to, or alter a culture product), broadcasts, live performances and other culture events (such as museum exhibits).

Culture industries

A culture industry is one for which culture products (goods or services) make up a significant part of its output. For instance, in the live performance industry, culture products represent the majority of its output even though they have secondary activity related to the sale of food and beverages. The CFCS, and therefore the PTCI, also include industries involved in the ‘creative chain’.

Industry perspective

The industry perspective shows the presentation of all activities by culture and sport industries. In the PTCI industry perspective tables, culture industries are grouped under their respective domains.

Product perspective

The product perspective groups like products (regardless of industry of origin) together. For example, books may be produced in more than one industry. In the product perspective, all activity related to the production of books is grouped together.

Gross domestic product

Gross domestic product (GDP) or value added is a key measure of economic performance in the PTCI. It represents the output of an industry minus the value of intermediate inputs used up in the production of the culture goods and services.

Employment

Employment data (i.e., number of jobs) come from the Canadian Productivity Accounts in the Canadian System of Macroeconomic Accounts. It represents the number of jobs held by the self-employed, employees and unpaid family workers.Note 7 It should be noted that a job that exists for only part of the year (e.g., 4 months) counts as only a fraction of a job (1/3 of a job) for that year. It should also be noted that job figures include both full- and part-time positions. Full- and part-time jobs are treated equally, regardless of the number of hours worked.Note 8 For example, a part-time job at 10 hours per week counts as much as a full-time job at 50 hours per week.

GDP of culture industries

The GDP of culture industries covers the value added attributable to both culture and non-culture products. For example, the performing arts industry may generate GDP from both admissions to live performances (a culture activity) and food and beverages services (a non-culture activity). The GDP for both activities is included in the GDP of culture industries.

This is the standard measure of industry based GDP, consistent with previous Statistics Canada studiesNote 9 of culture’s economic contribution in Canada. It is the measure appropriate for inter-industry comparisons.

Culture GDP

Culture GDP is the value added related to the production of culture goods and services across the economy regardless of the producing industry. For example, for the performing arts industry, which may generate GDP from admissions to live performances and food and beverages services (a non-culture activity) only the GDP from admissions to live performances (the culture activity) will be counted. However, it will also include any GDP from admissions to live performances produced outside of the live performance industry.

The culture GDP measures the GDP from the production of all culture goods and services in the Canadian economy regardless of the industry in which they are produced.

Employment in culture industries

Employment in culture industries is measured by the number of jobs in each relevant industry. It covers all jobs required to produce both culture and non-culture output. For example, the performing arts industry may require an individual to collect admissions tickets to a live performance (job from culture activity) and a bartender in the food and beverages services (job from a non-culture activity). Both jobs are included in employment in culture industries.

Culture jobs

Culture jobs are defined as the number of jobs related to the production of culture goods and services in a given industry. Therefore, it covers only the jobs required to produce culture activities in that industry. Using the example above, only the individual selling admissions tickets would be included in the estimate of culture jobs.

GDP of sport industries

The GDP of sport industries is the measure of output from all sport industries. It covers all of the industries’ outputs—sport and non-sport products. For example, a sporting event may generate GDP from both, admissions to the sporting event (a sport activity) and food and beverages services (a non-sport activity). The GDP associated with both of these products would be included in the GDP of sport industries.

Sport GDP

Sport GDP is defined as the value added in an industry related to the production of sport goods and services across the economy regardless of the producing industry. For example, for a sporting event which generates GDP from admissions to sporting events (a sport activity) and food and beverages services (a non-sport activity), only the GDP from admissions to sporting event (the sport activity) will be included in Sport GDP. However, it will also include any GDP from admissions to sporting events produced outside the sport industries.

Employment in sport industries

Employment in sport industries is the number of jobs in each of the sport industries. It covers all jobs in the industry required to produce both sport and non-sport products. For example, a sporting event will need jobs for both admissions to sporting events (a sport activity) and food and beverages services (a non-sport activity). Both of these jobs will be included in the estimate of employment in sport industries.

Sport jobs

Sport jobs are defined as the number of jobs related to the production of sport goods and/or services regardless of the industry. For example, a sporting event may have two jobs: a job collecting admissions to sporting events (a job from sport activity) and bartender in the food and beverages services (non-sport activity). Only the job of the person collecting admissions tickets to sporting events (sport activity) is included in sport jobs.

Appendix B. Data sources and methods

Data sources

Primary data sources of the PTCI include the supply and use tables, estimates of GDP and output from the Provincial and Territorial Economic Accounts and the Canadian Productivity Accounts.

The supply and use tables (formerly called the input-output tables) consist of tables which detail the products produced and consumed by various industries and final consumers in Canada. There are various levels of aggregation with the most detailed level containing 236 industries and 481 products. Supply and use tables are available annually at the national, provincial and territorial level and are produced in current dollars at basic prices.

The Provincial and Territorial Economic Accounts, which are part of the CSMA, provide detailed information on GDP and output by industry for every province and territory. The Provincial and Territorial Economic Accounts provide annual provincial and territorial data in nominal and real terms, however, only those in nominal terms are used in building the PTCI. The Provincial and Territorial Economic Accounts are used to produce PTCI estimates of GDP and output in years where supply and use tables are not available.

The Canadian Productivity Accounts provide estimates of labour productivity and related variables such as number of jobs, hours worked, labour compensation and unit labour costs. National and provincial estimates are available. The Canadian Productivity Accounts are used to produce PTCI estimates of the number of jobs for all years.

Survey data on services industries, administrative tax data on non-profit industries serving households as well as other internal CSMA data are used as secondary sources where necessary and to evaluate the quality of the estimates. They may also provide more detailed information on an industry or product in cases where CSMA data is only available at an aggregate level.

Methods

This section describes the methodology used in compiling the PTCI. The PTCI use the same methodology, definitions, relationships, culture ratios as the 2010 PTCSA, however, they are distinct products.

For the reference years 2010 to 2012, the supply and use tables are used directly for compiling the GDP and output components of the PTCI.

For the reference years 2013 and 2014, supply and use tables are not available. Instead current CSMA data from various sources are used to project PTCI industry and product estimates for these years. These PTCI industry and product tables are then used to compile the GDP and output components of the PTCI.

The PTCI industry and product estimates for 2013 and 2014 are created by applying growth rates of CSMA indicators to the supply and use tables.

The growth rate of a specific CSMA indicator is applied to the corresponding industry’s GDP or output from the previous year’s supply and use tables or internal PTCI industry and product table, for all products within that industry. As a result, all products within an industry will show growth equivalent to the growth of the corresponding CSMA indicator. This means that for the projection years within each industry all products are assumed to have grown at the same rate, a limitation of the PTCI methodology.

For all reference years, Canadian Productivity Accounts data are used to compile PTCI estimates of employment.

The 2010, 2011 and 2012 supply and use tables, the 2013 and 2014 PTCI industry and product tables and the 2010 to 2014 Canadian Productivity Accounts tables are then run through the PTCSA production system, to compile the data according to the methodology of the 2010 PTCSA. This approach ensures the definitions, relationships and culture ratios of the 2010 PTCSA are applied to each reference year of the PTCI. The result is a series of annual estimates that form the PTCI, for which we are able to obtain levels, growth and shares of GDP, output and jobs.

The following figure illustrates the method for deriving the PTCI estimates.

Appendix C. Taxonomy of revisionsNote 10

The CSMA comprehensive revision encompasses six types of revisions: conceptual revisions, methodological revisions, classification revisions, statistical revisions, presentational revisions and content revisions.

1. Conceptual revisions reflect changes in what is being measured. For example, key concepts in the macroeconomic accounts include the concept of a production boundary, consumption, institutional units, etc. Any change to these definitions or the addition of a new concept would be considered a conceptual revision.

2. Methodological revisions reflect changes in how things are measured or the methods used to compile the accounts. For example, methods often used in macroeconomic accounting include deflation, seasonal adjustment, benchmarking and modeling. Any change to these techniques or the development of new techniques would be considered a methodological revision.

3. Classification revisions occur when the classification systems (assets, industries, products, consumption, etc.) underlying the macroeconomic accounts are updated. Classification revisions are required to ensure that the presentation of the macroeconomic accounts reflect current economic and social structure.

4. Statistical revisions occur when new source data are integrated into the macroeconomic accounts.

5. Presentational revisions occur when the way data are presented, the terms used to describe the data are updated, or additional data is provided. These revisions are made to align with international terminology or to make the data more intuitive for users.

6. Content revisions reflect changes in the amount of detail presented for a given account or set of macroeconomic statistics.

Appendix D. Culture and sport products, by domain

Appendix E. Culture and sport industries, by domain

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