The sector continues to show signs of growth
Canada’s employment services industry is continuing to show signs of growth as it gained $1bn in revenue over a year, according to Statistics Canada.
The sector – comprised of employment placement agencies, temporary staffing services, executive search firms, and professional employer groups – made $14.5bn in total operating revenue in 2017. This showed an increase of 6.8% from 2016, StatCan said.
Revenue growth in the temporary staffing industry (51%) outpaced growth in permanent placement and contract staffing services (39.6%).
Businesses in Canada also showed the biggest appetite for labour as they accounted for 87.2% of total sales in 2017. The latest figures reflected the growing demand for talent across the country.
Ontario staffing firms represented a significant share of the revenue at 58.3%. This was followed by Alberta at 16.1% and Quebec at 14.5%. British Columbia took up a share of seven per cent.
With continuing industry expansion also comes rising operational cost. Operating expenses rose to $13.9bn (6.1%), with salaries, wages, commissions, and benefits taking up 59% and subcontracts 28.6% of overall spending.
However, 2017 yielded a higher profit margin of 4.3% compared with the 3.7% margin of 2016.
The government in Ontario, for its part, is looking to boost the employment services sector in the province to “help more people find and keep quality jobs and increase the number of businesses finding the right workers with the right skills,” according to the Ministry of Training, Colleges and Universities.
