Canadian Occupational Projection System (COPS)

NAICS 5511; 5611-5619; 5621-5629

This industry is composed of three segments: management of companies and enterprises (including security holdings and head offices); administrative and support services (such as record keeping, employment placement, document preparation, call centres, collection agencies, travel arrangement, and security, janitorial and landscaping activities); and waste management and remediation services (such as the collection, treatment and disposal of waste material, soil remediation, waste water treatment, hazardous material removal). Administrative and support services are the largest and the most labour intensive of the three segments, accounting for 81% of production and 93% of employment in 2021. In comparison, management of companies and enterprises accounted for 6% of production and less than 1% of employment, versus 13% and 7% respectively for waste management and remediation services. The industry employed 707,700 workers in 2021 (down from 768,100 in 2019), mostly concentrated in Ontario (41%), Quebec (23%), British Columbia (15%) and Alberta (10%). The workforce is characterized by a slight majority of men (56%) and a significant proportion of self-employed (22%) and part-time workers (24%). The industry is also characterized by much lower wages than the overall economy average. Given the wide variety of activities, key occupations (4-digit NOC) include a mix of:

• Light duty cleaners (6731)
• Security guards and related security service occupations (6541)
• Landscaping and grounds maintenance labourers (8612)
• Janitors, caretakers and building superintendents (6733)
• Other customer and information services representatives (6552)
• Contractors and supervisors, landscaping, grounds maintenance and horticulture services (8255)
• Cleaning supervisors (6315)
• Material handlers (7452)
• Travel counsellors (6521)
• Public works maintenance equipment operators and related workers (7522)
• Specialized cleaners (6732)
• Landscape and horticulture technicians and specialists (2225)
• Human resources and recruitment officers (1223)
• Employment counsellors (4156)
• User support technicians (2282)
• Public works and maintenance labourers (7621)
• Court reporters and medical transcriptionists and related occupations (1251)
• Collectors (1435)
• Conference and event planners (1226)
• Pest controllers and fumigators (7444)
• Tour and travel guides (6531)

Overall, the industry is heavily reliant on the performance of the domestic economy, particularly business activities and corporate profitability as it is primarily engaged in activities that support the day-to-day operations of other organizations. With the exception of waste management services that are less sensitive to cyclical fluctuations in economic conditions, the other segments of the industry were negatively affected by the recession of 2008-2009, as a result of a sharp decline in corporate profits. It took three years for output to fully recover from its pre-recession level, before expanding at a more solid pace from 2013 to 2015, primarily driven by higher demand for employment, building and security services. The output started to trend down in 2016, reflecting lower activity in management of companies and enterprises (due to the restructuring, reorganization and consolidation of many activities and head offices) and weaker demand for office administrative services (partly due to the growing use of automated administrative software). The decline in output accelerated markedly in 2020 (-14%), during the first year of the COVID-19 pandemic, as lower economic activity, telework policies and travel restrictions negatively impacted all segments of the industry and more particularly the following sub-segments: office administrative services, business support, employment services, building services and travel arrangement. With the continuation of public health restrictions, the output barely rebounded in 2021 (+1.5%), remaining largely below is pre-pandemic level. As a result, real GDP in the industry contracted at an average rate of 1.3% annually over the entire period 2012-2021. After peaking in 2019, employment fell significantly in 2020 (-8.4%) and the marginal increase recorded in 2021 left the number of workers well below its pre-pandemic level. This lowered employment growth in the industry to a modest 0.3% annually for the past decade. The movements in output and employment also led to repetitive declines in productivity in the past several years, resulting in an average contraction of 1.6% per year from 2012 to 2021.

Over the projection period, output growth in management, administrative and other support services is expected to return to positive territory and straighten markedly, as the industry slowly recovers from the pandemic and continues to expand. The lifting of public health restrictions, the improvement in business activity, the gradual return of workers to the office, and the recovery in travel and tourism activity are expected to lead to renewed growth in demand across various segments of the industry, including business support, employment services, building services, and travel arrangements. However, the same factors that restrained activity in management of companies and enterprises and demand for office administrative services are expected to continue in the future. As a result, production and employment in the industry are not expected to reach pre-pandemic levels until half way the projection period. In the longer term, the industry will continue to benefit from the growing number of firms across the economy that choose to outsource management, administrative and other support functions in order to remain focused on their core activities and increase operation efficiency, particularly manufacturing firms which are more likely to be exposed to fierce competition from low-cost countries. Under that context, the acceleration anticipated in Canadian manufacturing activity, combined with solid activity in other sectors of the economy, represent greater opportunities for the industry. The acceleration projected in the construction of commercial, industrial and institutional buildings is expected to boost demand for building services such as cleaning and landscaping, care and maintenance, guard and security, mail routing and logistical support services. Labour shortages (resulting from massive retirements of baby-boomers and a tight labour market) and skills mismatches (resulting from technological change) are expected to stimulate demand for employment, recruitment and training services. Activity in waste management and remediation services is also expected to increase, as environmental concerns have led to the creation and implementation of new waste regulations and more demand for waste management services, particularly in recycling and composting.

On average, the industry’s real GDP is projected to increase by 2.3% annually over the period 2022-2031. Despite the substantial rebound in output relative to the previous decade, employment growth is projected to slow marginally, averaging 2.0% per year, as a result of a slight pickup in productivity which is expected to increase by a modest 0.3% annually. While the industry is highly labour intensive, an increasing number of occupations and tasks are being automated and performed by technology, particularly those involving routine or low-skilled work. At the same time, a growing number of non-routine jobs and cognitive tasks are being complemented and enhanced by technology. For example, tasks related to administrative support, travel arrangements and staffing services can be increasingly performed by software and online applications, while rapid advancements in robotics and security systems may result in greater automation of tasks related to janitorial, cleaning and security services. Artificial intelligence and machine learning may also complement tasks associated with more complex administrative and management work.

Real GDP and Employment Growth Rates in Management, Administrative and Other Support Services

Sources: Statistics Canada (historical) and ESDC 2022 COPS industrial projections.

Sources: Statistics Canada (historical) and ESDC 2022 COPS industrial projections.