Canada Staffing Industry Projections 2024
The staffing industry in Canada was identified as one of the most attractive staffing markets globally for recruitment agencies to keep on their radar for business expansion, ranking one place shy of the top 10 at number 11 by Staffing Industry Analysts (SIA).
The Canada staffing industry earned it’s place as a destintion for scaling a recruitment agency due to it’s revenue growth projections, favourable temporary agency work regulations and political landscape. The infographic below contains a deeper dive into how big the recruitment industry is in Canada from SIA’s 2024 revenue projections, and why taking a piece of Canada staffing revenue should be on your ‘to-do’ list
Canada Staffing Revenue Projections 2024
As highlighted in the above infographic, total Canada staffing revenue (generated from temporary staffing and place and search) is projected to grow 3% from $10.4 billion in 2023 to reach $10.7 billion Canadian dollars (CAD) in 2024. Temporary staffing makes up 95% of this entire figure, highlighting the revenue potential your recruitment agency could seize by placing contractors in Canada.
Temporary services within the staffing industry in Canada is projected to grow in 2024 due to bill rates keeping pace with lower wage growth and inflation. Additionally, the private sector heavily utilisies professional temporary workers in Canada staffing vs healthcare workers. Healthcare only accounts for 2% of Canada staffing revenue due to it being goverment funded vs 10% in the US, making it an attractive destination for those that recruit in professional services.
How Many Recruitment Agencies Operate in the Staffing Industry in Canada?
The market share concentration in the staffing industry in Canada is relatively spread out making it an attractive market for scaling a recruitment agency internationally. According to IBISWorld data there were were approximately 5,050 recruitment and employment agencies operating in the staffing industry Canada in 2022. Between 2017-2022, this number has grown on average 2.1% per year.
Despite the growing number of recruiment agencies in Canada, the market remains notably decentralized, as highlighted by Staffing Industry Analyst’s observations on the the ten largest staffing firms in Canada.
No company within this top 10 list held more than 11% market share within the Canada staffing industry. The low competition for recruitment agencies in Canada staffing is further emphasised by data from IBISWorld, ‘The top four companies generated 32% of market revenue in Canada in 2023’, presenting a promising landscape for international expansion by a recruitment agency.
Canada’s Staffing Revenue is Powered by the Six Largest Metro Areas
It’s no surprise that the largest metropolitian areas in Canada contribute most to staffing revenue. The provinces Ontario, Quebec, British Columbia, and Alberta account for 88% of jobs in Canada.
If you plan to recruit within the staffing industry in Canada, targeting the main metro areas in these provinces means a larger labor market to choose from with greater revenue potential:
Totonto (Ontario)
Montreal (Quebec)
Vancouver (British Columbia)
Calgary (Alberta)
Edmonton (Alberta)
Ottawa (Ontario).
Time to Enter the Staffing Industry in Canada?
The Canada staffing industry has been a repeated topic by PGC’s recruitment agency clients operating in the number one staffing industry, the US. Often, once recruitment agencies crack the US, they set their eyes on neighboring Canada; ease of access, similar cultures, and employment demand are some of the reasons why.
If you’re intrigued by the opportunities the staffing market in Canada presents, PGC can talk you through the employment landscape in Canada and help you navigate it to become the next recruitment agency placing contractors in Canada.
Disclaimer: The information provided here does not, and is not intended to, constitute legal advice. Instead, the information and content available are for general informational purposes only.