The Canadian temporary staffing industry will see an increase in revenue this year, according to the “Canadian Staffing Industry Outlook: 2017 Update” report released by Staffing Industry Analysts. The industry will see revenue rise 4% year over year in 2017 to reach a market size of C$8.5 billion. The report also projects a slight deceleration to 3% growth in 2018.

The Canadian temporary staffing industry was flat in 2016, as steep declines in the province of Alberta were offset by modest growth in Ontario, Quebec and British Columbia.

Adding the small Canadian place and search market — direct hire, retained/executive search, “temp-to-perm” conversion fee revenue — to the temporary staffing market, Staffing Industry Analysts estimates the total Canadian staffing industry was CAD 8.6 billion in revenue last year. As with temporary staffing specifically, SIA projects 4% and 3% growth for the total Canadian staffing industry in 2017 and 2018, respectively.

Comparatively, Staffing Industry Analysts forecasts the US staffing market — which includes temporary staffing as well as place and search — will grow 3% in 2017, with variances across occupational segments; both markets also grew 3% in 2016.

“In this year’s report, we note that Canada’s economy is also aided by a faster rate of population growth than the US, with population growing 1.1% annually over the past five years in Canada, versus 0.8% in the US,” said Research Manager Timothy Landhuis. “In addition, the Canadian government raised the immigration target to 300,000 individuals starting in 2016, a move designed to further grow the labor force and economy.”

Stabilization in oil prices have brought about the beginning of a recovery in the energy sector in Canada, which is heavily concentrated in Alberta. Economic forecasters now predict 2.5% GDP growth this year in Alberta, a welcome relief from the recession experienced over the past two years in the province.

Canada’s GDP is expected to grow 2.6% this year and 1.9% next year, according to the Bank of Canada’s Monetary Policy report, with growth expected in the manufacturing and financial services sectors.

Canada’s unemployment rate dipped to 6.5% in April. Nevertheless, there still appears to be enough slack in the labor market such that growth in pay rates and bill rates is expected to remain moderate this year.

Corporate members can download the full report online.