Narayan AmmachchiThe services sector in Canada has turned out to be on of the country’s main engines of economic growth, with the sector creating 30 more jobs for every job lost in the manufacturing sector.
Thanks largely to technological disruption, employment in the manufacturing sector is falling, but employment in the services sector is rising like never before, said the Governor of the Bank of Canada, Stephen S. Poloz.
“For every job that has been lost in the goods sector since 2001, about 30 jobs have been created in service industries,” he said, citing the bank’s recent survey.
Moreover, technology is giving birth to new varieties of services, and IT services exporters are seeing their sales grow rapidly, with most of them looking to hire.
“Canadians are increasingly working in the services sector, while employment by goods producers has fallen even as output in goods industries has continued to expand,” continued Poloz.
Another noteworthy point is that many jobs in the services sector pay more than the average wage and are therefore helping the government to increase tax revenues.
Some of the most dynamic industries are in the new economy, Poloz explained, where companies are using information technology to boost productivity and create high-wage, high-skill employment in industries such as artificial intelligence and custom software engineering.
This is good news for Canada, whose economy suddenly felt running out of fuel two years ago when its export capacity decreased and prices of resources dropped. According to Poloz, these two shocks “created an $80 billion to $90 billion hole” in the economy.
“I strongly believe that the continued expansion of our service sector is pointing the way toward full economic recovery and the return of sustained, natural growth,” he added.
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