Approximately What Percentage Of The U.s. And Canadian Economy Is Engaged In Service Industries?

Businessman and businesswoman working outside

This sector accounts for 75% of Canadian jobs and 78% of the country's GDP. Canada's service manufacture includes the post-obit sectors; transportation, economic, wellness care, construction, banking, communication, retail, tourism and government. Equally a vital part of the Canadian economy, the most pop sector is retail with some big franchise names including Walmart and Future Store.

In recent years, the financial services, real manor and communications industries have grown exponentially, especially in the concern hubs of Vancouver, Montreal and Toronto.

Known as "Hollywood North", Canada has become a powerhouse of international and local films, with many American motion-picture show studios choosing to movement their sets here.

Services play a cardinal role in economies around the earth and Canada is no exception. Gradually, the proportion of our economic system stemming from services has been increasing, from 65% in 2004 to 69% in 2013. The gross domestic production (GDP) of service industries in 2013 totalled $714 billion—virtually double the corporeality in 2001.

The economic system is divided into two sectors: the goods-producing sector, which makes tangible products, and the services-producing sector, which is essentially everything else. Services comprises a diverse range of activities, including high-tech and cognition-intensive jobs, as well every bit low-skill, labour-intensive jobs—everything from software programmer to fast food server.

Services tend to concentrate in CMAs

Census metropolitan areas (CMAs) have a large concentration of service jobs, at 78% of full employment in 2013, compared with 68% elsewhere. Throughout the 1990s, almost all CMAs became more service-oriented.

The largest concentrations of service employment in 2013 were in St. John'due south, Ottawa−Gatineau, Halifax, Victoria, Regina and Québec all of which had over 85% of their work forces employed in service-related jobs.

Much of the growth in services employment tin be attributed to chore creation in professional, scientific and technical services (mainly business services). This was especially the case in Canada's five most populous CMAs (Toronto, Montréal, Vancouver, Ottawa−Gatineau and Calgary), where 280,000 such jobs were created from 2010 to 2014. This job growth deemed for eleven% of the total increase in all service jobs in Canada over this menstruation.

Professional, scientific and technical services are condign an increasingly important industry in the Canadian economy. From 1994 to 2003, their share of full Gross domestic product increased from 3.0% to 4.five%. Near of this growth took place from 1996 to 2000, primarily in a few key industries. Notably, reckoner systems pattern and related services turned in the fastest growth, increasing its share of GDP from 0.6% in 1997 to 1.one% by 2003.

Firms in the 'other professional, scientific and technical services' manufacture specialized blueprint services, management and other technical consulting, research and development services and other scientific and technical services grew their share of GDP from 0.vii% in 1997 to ane.0% in 2003. By contrast, architectural and engineering science services remained adequately constant at ane.1% of Gdp in 1997 and 1.0% of Gdp in 2003. The rest of the professional person, scientific and technical services manufacture legal services, accounting, tax and bookkeeping services and advertising services deemed for 1.3% to 1.four% of Gross domestic product during the same menstruum.

Service Industries Aiding Canada'south Economy

With service-sector job growth up ii per cent in December from a yr ago, it's the biggest annual increase since early 2013. The largest almanac gains were in the cultural and recreational industry, while the biggest month-over-month increment was in professional and technical services.

And the trend has been building. Over the past 5 years, all just a fraction of new jobs were created in the service sector, with health care and social services—otherwise known as the concern of taking intendance of old people being the biggest driver so far. What gains there have been in the goods-producing sector of the economic system were overwhelming concentrated in the construction industry.

What'southward more, the chore market place gap between the goods and services sectors doesn't break downwards forth the same regional lines that accept led to imbalances in the Canadian economy over the last decade or so. In manufacturing-heavy Ontario, the appurtenances sector added just five,000 new positions last year, while services added 76,000. Meanwhile in Alberta, jobs in the goods sector cruel by 53,000, while the services sector added 34,000 not plenty to make the province a net job creator, but certainly proving that Alberta's economy is more diversified than just oil and gas jobs.

It's true that the wages of many of the new service jobs beingness created don't e'er match the goods-sector jobs that have been lost. Wholesale and retail trade was the third-biggest commuter of employment last year, even so those are not loftier-wage jobs, and certainly don't come up close to replacing high-paying positions in the oil and gas sector. On the other hand, the boilerplate hourly wage in the health care and social assistance sector last year's biggest jobs winner was college than in manufacturing.