More than 8.6% for employment services industry

According to a Statistics Canada report released in early May, the employment services industry experienced strong growth in 2006, with operating revenues increasing by 8.6% to $8 billion. Permanent and temporary staffing firms benefited from a generally strong economy and a tight labour market.

Growth was particularly strong in Western Canada. Manitoba, Saskatchewan, Alberta and British Columbia all posted increases of at least 10% over 2005. The big winner, however, remains. . . Ontario. That province alone generated 57% of 2006 industry revenues. However, its share has steadily declined since 2001, when it stood at 62%. During the same period, British Columbia’s share increased from 5 to 7%, as did Alberta’s, which climbed from 13 to 18%. Alberta is ahead of Quebec and now trails just Ontario.

Temporary staffing services accounted for most of industry operating revenue at 70% in 2006. However, this share was down considerably from 77% in 2005. Permanent placement and contractual staffing services generated 28% of operating revenues but accounted for almost all of the sector’s revenue gains.

Despite these positive results, there was a slight decline in profit margin, from 3.7% in 2005 to 3.5% in 2006, because operating expenses grew faster overall than revenues.

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