Highlights of the Canadian Search, Employment & Staffing Services Industry*
- 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.
Employment services, 2016 - Released: 2018-02-27
*Provided by the Statistics Canada Report on 2016 Survey of Employment Services
The Benefits of Flexible Labour
- The advantages of temporary work are recognized by workers, businesses,
economists and policymakers. It affords flexibility, training, supplemental income - and a bridge to permanent employment for those who are out of work or changing jobs.
- The growing number of temporary employees are highly paid and highly skilled technical, computer and health care workers who choose temporary and contract work as a preferred employment option because of the flexibility, independence, and in some cases, higher pay.
- Staffing firms supply employees in every industry in every job category, from unskilled industrial labour, assembly and production work, office and clerical support, to technical, scientific, professional and managerial positions.
- Staffing firms provide a wide range of human resource services such as recruiting, skills assessment, skills training and upgrading, risk management, and payroll and benefits administration – allowing customers to concentrate on their core businesses.