Despite nationwide economic woes, the industry was able to maintain its client base and grew healthier.
Los Angeles, CA (PRWEB) November 21, 2013
The Human Resources and Benefits Administration industry provides a wide range of everyday office administrative services to businesses in Canada. Industry operators offer assistance with financial planning, billing and record keeping, personnel, physical distribution and logistics. In addition, the industry provides general and specialized management services on a day-to-day or contracted basis.
Over the past five years, the Human Resources and Benefits Administration industry maintained considerable stability despite deteriorating economic conditions related to the global recession. In 2009, Canada experienced a 36.1% spike in unemployment and GDP shrank 2.6%. By comparison, in the same year, the Human Resource of Benefits Administration industry actually saw a slight 0.6%, increase in revenue. According to IBISWorld Industry Analyst Stephen Morea, "Despite nationwide economic woes, the industry was able to maintain its client base and, as the general economy began to turn around in 2010, grew healthier." Industry revenue is expected to increase an annualized 3.3% to $6.0 billion in the five years to 2013, including an increase of 1.1% in 2013. Had the overall Canadian economy performed better, growth in the Human Resources and Benefits Administration industry might have been even stronger. This industry is dependent on overall employment, as a large amount of industry related services, such as benefits consulting and employment compliance, are contingent upon the hiring of new employees. Although the GDP of Canada rose from 2010 onward, overall employment still remains below its prerecession levels, stifling any further industry revenue gains.
The Human Resources and Benefits Administration industry is expected to continue to perform well over the next five years. Unemployment is projected to decline by 2018. The number of businesses in the Canada is also expected to grow at an annualized 2.9% over the five years to 2018. "These businesses are expected to have higher corporate profit margins, which will allow them to outsource more administrative tasks, thus driving industry growth," says Morea. As a result of these positive factors, industry revenue is expected to grow in the five years to 2018. The industry is also expected to expand as small, nonemploying firms enter the industry to satisfy growing demand and capture high profit margins.
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IBISWorld industry Report Key Topics
The Human Resources & Benefits Administration in Canada provides a range of day-to-day office administrative services to clients, such as assistance with financial planning, billing and record keeping, personnel, physical distribution and logistics. This industry also furnishes general or specialized management services on a day-to-day basis and on a contract or fee-for-services basis. These businesses do not provide any actual operating staff to clients to carry out management or operational activities.
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