Highlights of the Canadian Search, Employment & Staffing Services Industry*
- The employment services industry group generated $13.3 billion in operating revenue in 2015, down 0.3% from 2014. Operating expenses declined by 0.7%, resulting in an operating profit margin of 4.1% in 2015, up from 3.7% in 2014.
- The employment services industry group consists of establishments primarily engaged in permanent placement, executive search, contract staffing, temporary staffing and co-employment staffing services.
- As this industry group is labour-intensive, salaries and subcontract expenses make up the majority of the expenses, accounting for 88.3% of total operating expenses. Salaries, wages and benefits accounted for 60.2% of total operating expenses, followed by subcontract expenses at 28.1%.
- Coinciding with the decline in the oil and gas industry, the resource-based provinces reported lower operating revenue for employment services in 2015. Operating revenue in Alberta decreased by 14.1% to $2.8 billion. Saskatchewan (-5.0%) and Newfoundland and Labrador (-3.6%) also reported lower operating revenue compared to 2014.
- Across Canada, most of the industry operating revenue continued to be generated by Ontario firms (54.6%), followed by Alberta (21.2%) and Quebec (12.1%).
- In terms of sales by type of service, temporary staffing services continued to be the largest contributor to the industry group's sales; however, its share in 2015 declined from 52.7% in 2014 to 51.3%. Permanent placement and contract staffing services generated 39.2% of total sales, up from 37.6% in 2014. Other sales of goods and services contributed the remaining 9.4%.
- The business sector, which is the primary client of the employment services industry group, accounted for 86.8% of total sales in 2015. The government, not-for-profit organizations and public institutions sector accounted for 10.4% of total sales. The remainder of sales (2.8%) was generated by individuals and households and clients outside Canada, combined.
Employment services, 2015 - Released: 2017-03-29
*Provided by the Statistics Canada Report on 2015 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.