Canadian Service Sector: Growth, Categories, and Wages Report

This report examines the growth and development of the service sector in Canada, highlighting its expansion in the twenty-first century due to deindustrialization and technological advancements. It analyzes the decline in manufacturing employment and the corresponding rise in service sector jobs, discussing the impact on workers and the shift towards communication-based professions. The report categorizes various sub-sectors within the Canadian service industry, detailing average weekly wages for each, including wholesale trade, retail trade, information and cultural industries, transportation, finance, and professional services. It differentiates between private and public services, providing insights into wage disparities and identifying both high-paying and low-paying sectors within the Canadian economy. The analysis draws on various academic sources to support its findings, offering a comprehensive overview of the service sector's evolution and its economic significance in Canada.

Running head: SOCIAL SCIENCE
Social Science
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Table of Contents
Answer 1..........................................................................................................................................2
Growth of service sector in Canada.............................................................................................2
Key categories of services sector and corresponding payment...................................................2
References........................................................................................................................................5

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Answer 1
Growth of service sector in Canada
The deindustrialization, which reaches its high time in 1970 in countries like Canada,
United Kingdom and the United States, is continued in the twenty first century. Between 2000
and 2010, the employment in Canadian manufacturing sector declined by 22.5 percent. During
this time, the share of manufacturing employment in total employment fell to 10.35 percent from
15.6 percent. The displacement of workers engaged in heavy industries including steel
production, papermaking factories, car assembly resulted from introduction of high-end
technologies like computer-assisted system, industrial robots; flexible manufacturing accelerates
the growth of service sector in Canada. The workers who lose their jobs in these industries have
no other option but to take low skilled jobs in services sector with a much lower payment
(Enderwick, 2013). In this time the though the general trend was a decline in manufacturing and
parallel growth of the service sector, some of heavy industries still alive and growing. In Canada,
some manufacturing company though growing but producing goods with lesser workers.
In an economy service sector is described as a sector where communication with
customer constitutes an important share of labor process. The professions include arts, retail
trade, hospitality industries, entertainment and others (Flynn & Bauder, 2015). In Canada, non-
professional service workers comprises 28 percent share in the service sector. The economic
activities in Canada are broadly divided in two categories- good producing and service sectors.
These two categories include three major sectors – primary, secondary and tertiary sector.
Key categories of services sector and corresponding payment
Within the service sector in Canada, there are 15 sub sectors as descried below

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Wholesale Trade: The Wholesale trade includes merchant wholesaler, products in farms,
building materials and supplies. The weekly average wage for this category is $1,109.65.
Retail Trade: The dealers in motor vehicles part, electronics and appliance store, clothing and
accessories to clothing and gasoline stations bring under this category. The average wage for this
group is $542.27.
Information and cultural industries: Publishing industries, telecommunication, broadcasting and
motion pictures and sound recording are included in this category.
Transportation and Water housing: Air, rail, water transport, truck and postal service.
Finance and Insurance: Central Banks.
Professional, scientific and technical service: Professions like legal, Accounting, Computer
system design, architectures are included in these category.
Management of Companies
Administrative and support
Educational service, health care, social assistance, public administration, accommodation and
food services
Within Canadian service sector, there are both private and public services. The private
services include insurance, real estate, company management, financial and credit unions
(Enderwick & Enderwick, 2013). The public services include health, education, and social
assistance, administration in provincial, federal, municipal.
In 2014, the average weekly salary in the service sector was $871. When categorized as
wages $1000 in week and $52000 in a year as benchmark of high wage, out of 15 industries in

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service sector seven rank as services with higher salary. These are wholesale trade, scientific and
technical profession, company management, insurance and finance, warehousing and
transportation, public administration, information and cultural industries (Fortin & Lemieux,
2015). In the low paying group having wages less than $600 per week there are three industries
namely retail trade: accommodation of food and services; art, recreation and entertainment.

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References
Enderwick, P. (Ed.). (2013). Multinational Service Firms (RLE International Business).
Routledge.
Enderwick, P., & Enderwick, P. (2013). Some economics of service-sector multinational
enterprises. Multinational Service Firms,(London and New York, NY: Routledge, 1989),
3-34.
Flynn, E., & Bauder, H. (2015). The private sector, institutions of higher education, and
immigrant settlement in Canada. Journal of International Migration and
Integration, 16(3), 539-556.
Fortin, N. M., & Lemieux, T. (2015). Changes in wage inequality in Canada: An interprovincial
perspective. Canadian Journal of Economics/Revue canadienne d'économique, 48(2),
682-713.