Services Sector Overview - October 2006

Long Term Trends

In the last 20 years, the services sector has represented, consistently, more than 45 percent of the economy's GDP, with its' share increasing more rapidly in the past five years.

Figure 1

Source: Statistics Canada, CANSIM 379 0017

Figure 1 - Link to data table

Short Term Trends

As seen on the next figure, the latest data released from Statistics Canada shows that GDP for all sectors of the economy increased between 2000 and 2005.

Figure 2

Source: Statistics Canada, CANSIM 379 0017

Figure 2 - Link to data table

Furthermore, aside from the Construction sector, the Services sector was the one that had the highest average annual growth rate (AAGR) (3.06 percent) in terms of GDP (slightly larger than the AAGR for the whole economy) and represented 70 percent of the economy.

Employment wise, the services sector had an AAGR (2.12 percent) that was higher than the industry average and represented 78 percent of total employment in 2005.

Figure 3

Source: Statistics Canada, CANSIM 281 0024

Figure 3 - Link to data table

Services Sector Yearly Trends

The next figures show the evolution over the past five years of services' sub-sectors.

Figure 4

Source: Statistics Canada, CANSIM 379 0017

Figure 4 - Link to data table

GDP wise, the sub-sector that grew the most between 2000 and 2005 was Management of companies and enterprises, followed by administrative and support, waste management and remediation services, and finally Retail with respective AAGRs of 6.1, 4.9 and 4.5 percent.

Figure 5

Source: Statistics Canada, CANSIM 281 0024

Figure 5 - Link to data table

Employment wise, the sub-sector that grew the most between 2000 and 2005 was Administrative and support, waste management and remediation services followed by Management of companies and enterprises, and the Retail sector with respective AAGRs of 5.5, 4.7 and 3.3 percent

Monthly Trends for the Whole Economy

During this period, the Utilities sector was the one with the highest AMGR ² (0.63 percent). The Services sector ranked second, with an AMGR (0.18 percent), superior to that of the Industry average.

Figure 6

Source: Statistics Canada, CANSIM 379 0019

Figure 6 - Link to data table

On the employment side, services industries had a positive AMGR (0.07 percent), lower than that of the industry average. The sector with the highest AMGR (13.70 percent) was Forestry, logging and support.

Figure 7

Source: Statistics Canada, CANSIM 281 0023

Figure 7 - Link to data table

Monthly Trends for Services' Sub-sectors

During this period, 66 percent of services sub-sectors enjoyed positive GDP growth, this is a contrast to the previous reported period (January to April 2006), when 93 percent had reported positive growth. The sub-sector that grew the most, GDP wise, was Wholesale Trade with an AMGR of 0.68 percent, followed by Administrative and support, waste management and remediation services and, Financial and Insurance services (with respective AMGR of 0.42 and 0.34 percent).

Figure 8

Source: Statistics Canada, CANSIM 379 0019

Figure 8 - Link to data table

Employment wise, 12 out of 15 services sub-sectors registered a positive AMGR. The sub-sectors that grew the most were Arts, entertainment and recreation services (1.28 percent), followed by Management of companies and enterprises and Administrative and support, waste management and remediation services (with respective AMGR of 1 and 0.92 percent). The sectors who saw a loss in employment were Retail trade, Information and cultural industries and, Finance and insurance.

Figure 9

Source: Statistics Canada, CANSIM 281 0023

Figure 9 - Link to data table

Employment wise, 14 out of 15 services sub-sectors registered a positive AMGR. The sub-sectors that grew the most were Arts, entertainment and recreation services (3.93 percent), followed by Accommodation and Food services and Public Administration Services (with respective AMGR of 2.55 and 1.93 percent). The only sector that saw a loss in employment was Educational Services, with an AMGR of -9.54 percent.

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