Employment services in 2023: A year of transition
The employment services industry group—which includes employment placement agencies and executive search services, temporary help services, and professional employer organizations—reported continued growth in 2023, with operating revenues increasing 5.2% to $24.7 billion.
However, the pace of growth in 2023 was significantly slower compared with the double-digit gains seen in 2021 (+23.2%) and 2022 (+18.6%). While businesses continued to face challenges in recruiting skilled workers in 2023, labour shortages began to ease, in part because of a declining job vacancy rate and strong population growth. Although these factors contributed to easing demand for employment services, in 2023, the industry group's operating revenues remained above (+44.1%) levels seen in 2019, before the COVID-19 pandemic.
Operating expenses in the industry group rose 5.9% to $23.4 billion in 2023, outpacing revenue growth. As a result, the operating profit margin fell to 5.2%. Rising costs were driven in large part by continued wage pressures, with salaries, wages, commissions and benefits (54.2%) and subcontracts (33.7%) accounting for almost nine-tenths of operating expenses.
Contact information
------For more information, contact the Statistical Information Service (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).