Arts, Entertainment and Recreation (NAICS 71): Ontario, 2024–2026
HIGHLIGHTS
- There were 173,700 people employed in the arts, entertainment and recreation sector in Ontario, comprising 2.2% of Ontario‘s total workforce in 2023.
- Employment in Ontario‘s arts, entertainment and recreation sector grew by 7.6% in 2023.
- Employment is expected to see moderate growth over the 2024-2026 forecast period. The sector‘s growth may be tempered by lower discretionary spending due to inflationary price pressures, as well as reduced leisure time due to workforce trends requiring employees to commute and return to work in the office.
ABOUT THE SECTOR
Composition and importance of the sector
The arts, entertainment and recreation sector includes establishments in the cultural, entertainment and recreational space. This includes performance arts and sports venues, museums, fitness and recreation centres, and cultural festivals. The sector also includes businesses that provide the artistic, creative and technical skills necessary for the production of artistic products and live performances.
In Ontario, this sector employed 173,700 people in 2023. While this only comprised 2.2% of the province‘s total workforce, these workers accounted for 37.8% of employment in the arts, entertainment and recreation sector across the country.
The sector in Ontario produced over $8.0 billion in gross domestic product (GDP) in 2023, contributing 0.9% to the province‘s total GDP.
- Between 2022 and 2023, output in the industry increased by $1.0 billion (14.8%).
- Between Q2 2023 and Q2 2024, output grew by 5.1%.
Graph 1. Employment Share by Subsector
Source: Statistics Canada, Labour Force Survey, Custom Table
Show graphic in plain text
Geographical distribution of employment
In 2023 in Ontario, the economic region (ER) with the highest proportion of workers in the arts, entertainment and recreation sector was the Toronto ER, with 48.3% of employment. This is due to Toronto‘s role in the province as a cultural and recreational economic hub and the high population density in the region. About 52% of the registered Ontario businesses with 100 or more employees were located in the Toronto ER.
Table 1. Employment by Economic Region
Source: Statistics Canada, Labour Force Survey, Custom Table
Show table in plain text
WORKFORCE
Workforce characteristics
- In 2023, the average hourly wage rate in Ontario‘s arts, entertainment and recreation sector was $21.98, far below the provincial average hourly wage of $29.18.
- Women accounted for 51.4% of the sector‘s workforce in 2023, compared to 47.4% for workers in all industries.
- Youth (aged 15 to 24) in the province made up 34.9% of arts, entertainment and recreation employees, compared to 13.2% for all industries.
- Nearly one-quarter (21.2%) of the sector were self-employed, compared to 13.6% in all industries.
- 44.4% of employees in the sector were employed part-time in 2023, which was considerably higher than for the province‘s workforce (17.3%).
Table 2. Top 5 Occupations
Source: Statistics Canada, Labour Force Survey, Custom Table
Show table in plain text
RECENT HISTORY
In the last decade, employment in Ontario‘s arts, entertainment and recreation sector observed steady growth, before experiencing sharp declines in 2020 due to COVID-19. Similarly, GDP for the sector saw increases over the past ten years, before facing a dramatic drop in 2020
In July 2019, prior to the pandemic, employment in Ontario‘s arts, entertainment and recreation sector totalled 188,200. Five years later, in July 2024, it had increased 9.4% to 205,800. Recently, the arts, entertainment and recreation industry has benefitted from the trend of workers exiting other sectors, particularly retail and food services, seeking better compensation and benefits. Indeed, employment for the arts, entertainment and recreation industries in Ontario observed a 22.9% increase from the beginning of 2019 through mid-2022, compared to 8.2% province-wide. The upward trend continued, reaching a peak of 205,100 in August 2023.
In 2023, the sector‘s GDP in 2023 reached nearly $8.0 billion, representing an 86.6% increase from 2020 and surpassing the pre-pandemic GDP by 18.0%. The initial recovery could be partially explained by segments of consumers partaking in “revenge spending” on discretionary goods and services, which was increased spending due to pent-up demand in the aftermath of lockdown policies and travel restrictions. GDP growth continues to be strong in this sector, even as consumers have faced high inflation and reductions in leisure time due to increased amounts of time in office.
Graph 2. Sector Employment, Sector GDP and Sector Wages in Ontario*
Sources: Statistics Canada, Labour Force Survey, Custom Table
Statistics Canada, Gross Domestic Product by Industry - Provincial and Territorial (Annual)
Statistics Canada, Survey of Employment, Payrolls and Hours
*Data are expressed as index where year 2013 = 100%
Show graphic in plain text
EMPLOYMENT OUTLOOKS
Over the 2024-2026 forecast period, the arts, entertainment and recreation sector in Ontario is expected to experience moderate employment growth.
Post-pandemic, consumers prioritized recreation and entertainment expenses due to pent-up demand following restrictions. However, consumer demand for goods and services is slowing so far in 2024, as high interest rates increase debt servicing costs for households and limit discretionary spending. However, the Bank of Canada has started reducing its key interest rate since early summer 2024, which may positively impact household spending later on in the forecast period.
In addition, gains in leisure time for entertainment and recreation activities as a result of fewer and shorter commuting trips are likely to revert, as more Canadian employers follow recent trends to mandate its remote and hybrid workers to return to the office on a more regular basis. Consequently, these factors may temper demand in activities pertaining to arts, entertainment and recreation, affecting the sector‘s outlook and employment prospects.
Table 3. Employment Change in Arts, Entertainment and Recreation: July 2019 vs. July 2024
Source: Statistics Canada, Labour Force Survey, Custom Table
Show graphic in plain text
Key trends affecting the outlook of the arts, entertainment and recreation sector
- Disposable household income levels, affected by high inflation and rising living costs.
- Reduced leisure time for entertainment and recreation activities, due to workforce trends of employers requiring employees working from home to commute and return to the office on a more regular basis.
FOR FURTHER INFORMATION
Note: In preparing this document, the authors have taken care to provide clients with labour market information that is timely and accurate at the time of publication. Since labour market conditions are dynamic, some of the information presented here may have changed since this document was published. Users are encouraged to also refer to other sources for additional information on the local economy and labour market. Information contained in this document does not necessarily reflect official policies of Employment and Social Development Canada.
Prepared by: Labour Market and Socio-economic Information Directorate, Service Canada, Ontario Region
For further information, please contact LMSID at: Contact: Labour Market Information - Canada.ca (services.gc.ca)
APPENDIX
Table A1. Geographical Distribution of the Sector
Source: Statistics Canada, Labour Force Survey, Custom Table
Show graphic in plain text
Table A2. Characteristics of Employed Persons
Source: Statistics Canada, Labour Force Survey, Custom Table
*Average annual growth rate for last ten years available data
Show table in plain text
| Arts, Entertainment and Recreation | All Sectors | |||||
|---|---|---|---|---|---|---|
| Employment, 2023 | Share of Total (%) | AAGR (%)* | Share of Total (%) | AAGR (%)* | ||
| Employment | 173,700 | 100.0% | 2.4% | 100.0% | 1.6% | |
| Male | 84,300 | 48.5% | 1.9% | 52.6% | 1.7% | |
| Female | 89,200 | 51.4% | 3.0% | 47.4% | 1.4% | |
| 15-24 years old | 60,700 | 34.9% | 5.4% | 13.2% | 1.3% | |
| 25-54 years old | 81,800 | 47.1% | 0.5% | 65.0% | 1.2% | |
| 55 years and older | 31,000 | 17.8% | 5.6% | 21.8% | 3.0% | |
| Worked full-time | 96,800 | 55.7% | 1.6% | 82.7% | 1.8% | |
| Worked part-time | 76,900 | 44.3% | 4.4% | 17.3% | 0.3% | |
| Self-employed | 36,900 | 21.2% | 1.1% | 13.6% | 0.4% | |
| Employees | 136,600 | 78.6% | 3.1% | 86.4% | 1.8% | |
| Permanent job | 212,500 | 122.3% | 0.7% | 76.6% | 1.9% | |
| Temporary job | 66,600 | 38.3% | 3.2% | 9.7% | 0.9% | |
| Less than high school | 23,500 | 13.5% | 7.0% | 6.1% | -2.1% | |
| High school graduate | 54,800 | 31.5% | 3.6% | 22.3% | -0.4% | |
| Postsecondary cert. or diploma | 44,900 | 25.8% | 2.0% | 32.3% | 1.3% | |
| University degree | 49,700 | 28.6% | 1.7% | 39.3% | 4.1% | |
- Date modified: