Canadian Occupational Projection System (COPS)

(NAICS 2211; 2212; 2213)

This industry comprises establishments primarily engaged in operating electric, gas and water utilities. These establishments generate, transmit, control and distribute electric power; distribute natural gas; treat and distribute water and operate sewer systems and sewage treatment facilities and related systems (such as steam and air conditioning systems). They generally operate through a permanent infrastructure of lines, pipes, treatment and processing facilities. Electric power generation, transmission and distribution are by far the largest of the three segments, accounting for 79% of production in 2023. The industry is mostly oriented toward the domestic market and is very sensitive to fluctuations in industrial production and construction activity. It employed about 154,900 workers in 2023, with 74% in electric power generation, transmission and distribution, 11% in natural gas distribution, and 16% in water, sewage and other systems. Employment is mostly concentrated in Ontario (41%), Quebec (20%), Alberta (13%) and British Columbia (10%). The workforce is primarily composed of men (75%) and benefits from much higher wages than the national average, partly attributable to a high unionization rate.

Key occupations (5-digit NOC) include:

• Power engineers and power system operators (92100)
• Utilities managers (90011)
• Water and waste treatment plant operators (92101)
• Electrical power line and cable workers (72203)
• Supervisors, petroleum, gas and chemical processing and utilities (92011)
• Electrical and electronics engineers (21310)
• Power system electricians (72202)
• Mechanical engineers (21301)
• Utility maintenance workers (74204)
• Electrical and electronics engineering technologists and technicians (22310)
• Gas fitters (72302)

Projections over the 2024-2033 period

Real GDP is projected to grow at an average annual rate of 1.2%. The industry provides the basic infrastructure used to support economic growth in various other industries. In addition to benefit from continued growth in the industrial and commercial sectors of the economy, the industry will benefit from the acceleration anticipated in population growth, increasing demand for water and energy infrastructure. The electricity segment will benefit from high levels of investment as the country moves toward decarbonization, including, for example, higher demand for electric vehicles and charging stations across the country. To support this transition, the construction of several renewable energy projects is expected to be undertaken over the next several years, including hydroelectric, solar and wind energy projects, as well as investments to modernize and improve the current infrastructure to meet the expected increased demand. The demand for renewable energy in the United States is also expected to remain strong and support future exports, primarily from Quebec, Ontario, British Columbia and Manitoba.

Productivity is expected to grow at an average annual rate of 0.5%, supported by the increasing adoption of advanced technologies in Canada's utility sector. Innovations such as smart grids, the Internet of Things (IoT), and artificial intelligence (AI) are anticipated to significantly enhance operational efficiency, reduce costs, and drive substantial productivity improvements over the next decade.

Employment is projected to increase by 0.7% annually. This will represent a slowdown compared to the recent pace, as growth in real GDP is expected to progressively rely more on productivity gains related to technological advances. Relatively high wages and good work conditions related to high unionization rate will help the industry remain attractive to workers.

Challenges and Opportunities

The utilities sector faces a number of challenges and opportunities. One of the main challenges is the need to transition to cleaner and more sustainable energy sources in order to meet environmental regulations and address climate change concerns. This transition will result in substantial investments in renewable energy infrastructure and grid modernization. However, this also presents an opportunity for utilities to innovate and assume a leading role in the development of clean energy solutions. Furthermore, the sector is confronted with the challenge of managing an aging infrastructure and ensuring grid reliability. Conversely, technological and data analytics innovations offer the industry the chance to boost operational efficiency, improve customer experience and facilitate more effective energy management. Finally, extreme weather conditions, such as floods and droughts, are expected to become more common, which could weigh on the reliability of electricity output, especially in the provinces relying on hydroelectricity.

Real GDP , Employment and Productivity Growth rate (2024-2033)

Sources: ESDC 2024 COPS projections.