At the end of June, Statistics Canada released its 2007 Employment Services Report. The 20 largest firms accounted for 38% of industry operating revenue, or 1% less than in 2006. In total, industry revenues increased 10.8%, while operating expenses grew by 10.2%, resulting in a positive operating profit margin (+4.1% in 2007, vs. +3.5% for the previous year).
The business sector generated 86% of sales for the employment services sector, vs. 11.8% for government and public institutions and 2.2% for individuals and foreign clients.
Temporary staffing services accounted for most of the sales (over 61%), with half from permanent placements. While temporary staffing still dominates, its share of sales has declined significantly from 79% in 2004.
With an increase of almost 36% in operating revenues over 2006, the employment services industry saw strong growth in Newfoundland and Labrador , followed by Ontario (+14.7%), British Columbia (+11.3%), Saskatchewan (+11.1%), New Brunswick (+9.8%), Alberta (5.4%) and Quebec (3%). Only Nova Scotia and Manitoba recorded a decrease (-6.8% and -10.1%).
The lion’s share (about 60%) of the industry’s operating revenues was as usual generated by Ontario. British Columbia’s share increased from 4.9% to 7.1%, as did Alberta’s (from 13.4% to 16.7%), while Quebec saw its share decline to 13.7% from 15.6% a year earlier.