Saskatchewan Sector Profile: Wholesale and Retail Trade
NAICS 41, 44-45
- Workforce characteristics
- Main occupations
- Occupation of interest: Retail and wholesale trade managers (NOC 60020)
Highlights
- Saskatchewan's wholesale and retail sector is the largest by employment with 98,200 workers in 2022, representing 16.9% of total employment in the province.
- Most jobs are concentrated in the retail sector, which by itself ranks second in size by employment and accounted for 12.7% (73,800) of total provincial employment in 2022.
- Employment prospects in wholesale and retail should be positive for the 2022-2024 outlook period. A resilient labour market and consumer spending should temper possible job losses in the immediate term, while an investment-driven positive economic outlook is expected to bring job growth over the medium term.
About the Sector
Composition and importance of the sector
The wholesale and retail trade sector ranks first among all sectors by employment in Saskatchewan, accounting for 16.9% (98,200) of total provincial employment in 2022. The sector comprises establishments primarily engaged in wholesaling and retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise.
In 2022, the sector contributed to:
Source: Statistics Canada Labour Force Survey; Statistics Canada Table: 36-10-0402-01 (GDP at basic prices, chained 2012 dollars); Statistics Canada Table: 36-10-0400-01 (GDP at basic prices, current dollars)
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Jobs in wholesale and retail trade are concentrated in the retail trade sector. In 2022, retail trade accounted for 75.2% (73,800) of wholesale-retail sector employment while wholesale trade made up the remaining 24.8% (24,400). More than half (55.3%) of the wholesale-retail employment were in food and beverages stores (19.5%), motor vehicle and parts dealers (10.9%), machinery equipment and supplies wholesale distribution (9.5%), general merchandise stores (8.4%), and building material and garden dealers (7.1%) – five out of the sector's 21 subsectors. [1]
Geographical distribution of employment
In 2022, seven in ten wholesale and retail jobs were around Regina and Saskatoon, with over a third (38.9%) of the sector's employment in the Saskatoon – Biggar economic region, and 31.2% in Regina – Moose Mountain. Prince Albert and Northern (16.0%), Swift Current - Moose Jaw (8.0%), and Yorkton – Melville (5.9%) accounted for the remaining three in ten (30.0%) of wholesale and retail trade jobs in the province.
Workforce
Workforce characteristics
In 2022, 98,200 people were employed in Saskatchewan's wholesale and retail trade sector. Most worked full-time (73.4%) with a higher proportion of males working full-time (81.8%) compared to females (62.4%). A higher proportion of wholesale jobs were full-time (93.9%) compared to retail trade (66.7%). Of those employed in the sector, 21.2% were 55 years or older, like the provincial average for all sectors (21.8%). Motor vehicle and parts wholesaler-distributors (30.0%) had the highest share of older workers, 55 years or older, while clothing and clothing accessories stores had the youngest workforce, with 60.0% of those employed aged 15 to 24 years. [2]
Of those employed in 2022:
Source: Statistics Canada Labour Force Survey, ESDC custom table
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In 2022, females (22.5%) were less represented in wholesale trade but equally represented as males in retail trade. Females were most represented in clothing and clothing accessories stores (81.6%), and in health and personal care stores (76.2%). Male workers were most represented in motor vehicle and parts wholesalers (90.9%) and in machinery, equipment, and supplies wholesalers (83.9%). Overall, males accounted for 56.8% of total employment in wholesale and retail trade.
In Saskatchewan, wholesale and retail trade workers earned a median hourly wage of $19.10/hour in 2022; slightly below the national median wage for this sector ($19.23/hour) and second lowest among the western provinces. [3]
Main occupations
In 2022, wholesale and retail trade jobs were concentrated among five occupation groups that made up more than half (54.2%) of the sector's total employment – retail salespersons and visual merchandisers (18.3%), cashiers (9.6%), retail sales supervisors (9.0%), retail and wholesale trade managers (8.8%) and store shelf stockers, clerks, and order fillers (8.6%). [4]
Occupation of interest: Retail and wholesale trade managers (NOC 60020)
Retail and wholesale trade managers plan, organize, direct, control and evaluate the operations of establishments that sell merchandise or services on a retail or wholesale basis. They are employed by retail and wholesale sales establishments, or they may own and operate their own store.
Retail and Wholesale Trade Managers Employment in Saskatchewan
Note: Figures shown are employment estimates
Source: Statistics Canada Labour Force Survey, ESDC custom table
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Year
Employment
2012
10,000
2013
9,800
2014
8,900
2015
9,600
2016
9,200
2017
10,000
2018
9,400
2019
8,100
2020
8,400
2021
7,000
2022
9,600
Retail and wholesale trade managers in Saskatchewan earn an hourly median wage of $36.92/hour, $1.34/hour more than the national median hourly wage ($35.58/hour). In Saskatchewan, the median wage for this occupation is highest in the Regina-Moose Mountain region at $41.03/hour. A secondary school certificate is required to work in this occupation, and in some positions, a university degree or college diploma in business administration may be required. Several years of related sales experience are also usually required.
The employment outlook for the period 2022-2024 is good for retail and wholesale trade managers in Saskatchewan. Additional occupational information can be found here.
Recent History
Some establishments in Saskatchewan's wholesale and retail trade sector were considered essential and thus continued to operate during the COVID-19 pandemic. These establishments, precisely in food wholesale distribution, farm machinery and equipment wholesale distribution, and food and beverage stores recorded job gains between 2019 and 2020. However, the sector was still significantly impacted by the pandemic, with around 40% of retailers in the country closing their physical locations. [5] Retail sales in Saskatchewan barely changed, increasing by 0.2% between 2019 and 2020, while wholesale trade posted a relatively small increase in sales (5.4%) over the same period. [6] In total, the wholesale and retail trade sector lost 2,900 jobs in 2020, with retail trade recording most of the job losses – 72.4% or 2,100 jobs. [7] The retail trade sector made a quick recovery from the pandemic, posting 14.7% increase in retail sales and adding 8,700 retail jobs in 2021, the largest single increase on record. Wholesale trade took a bit longer to recover, still losing 700 jobs between 2020 and 2021. But in 2022, wholesale trade sales were up 47.2%, driving up employment by 7.0% (1,600 jobs) and beyond pre-pandemic levels. Together, employment in wholesale and retail trade was up 3,300 jobs in 2022 compared to 2021. [8]
Wholesale and Retail Trade Employment
Note: Figures shown are employment estimates. Totals may not add to 100% due to rounding.
Source: Statistics Canada Labour Force Survey, ESDC custom table
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Year
Employment (Total)
Full-time
Part-time
2012
85,400
62,700
22,600
2013
85,200
64,100
21,100
2014
82,300
61,200
21,000
2015
83,300
63,800
19,500
2016
88,400
66,900
21,400
2017
92,600
69,100
23,500
2018
92,300
68,200
24,100
2019
89,800
68,000
21,800
2020
86,900
65,100
21,800
2021
94,900
70,200
24,700
2022
98,200
72,100
26,100
The recent job gains in wholesale and retail trade corresponded with a successful year for Saskatchewan's key exports, such as potash, wheat, and canola. [9] Saskatchewan wholesale and retail trade businesses sell to key industries in the province including agriculture which has seen a 55.0% increase in crop production since the 2021 drought. [10] Unsurprisingly, job growth in wholesale trade in 2022 was driven by employment growth in industry groups such as mining and industrial machinery equipment wholesale, farm machinery and equipment wholesale distribution and agricultural supplies wholesale distribution. [11]
High prices resulting from pent up spending in 2021, and the incidental interest rate hikes, led to employment losses in some retail subsectors such as food and beverages stores, motor vehicle and parts dealers and general merchandise stores in 2022. However, overall retail employment was up in 2022 by 2.4% or 1,700 jobs, mainly supported by job gains in gasoline stations (42.4% or 1,400) clothing and clothing accessories (36.1% or 1,300), health and personal care stores (18.0% or 900) and building material and garden dealers (6.1% or 400). [12]
The Province, in it's Growth Plan, has committed to working with retailers to promote the consumption of Saskatchewan-made products, including budgetary spending aimed at increasing local procurement from the government to 90%. [13] Saskatchewan's Agri-Food Innovation Centre has brought approximately 944 products to market over the last 22 years. [14] Another agri-food investor, Ag West Bio, will be supported by the province to develop products and support start-ups. [15]
Subsector Employment
Note: Figures shown are employment estimates
Source: Statistics Canada Labour Force Survey, ESDC custom table
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Year
Wholesale
tradeRetail
trade
2012
20,400
65,000
2013
22,100
63,000
2014
20,800
61,400
2015
20,700
62,600
2016
23,100
65,200
2017
24,100
68,500
2018
24,500
67,800
2019
24,300
65,500
2020
23,400
63,400
2021
22,800
72,100
2022
24,400
73,800
On March 31, 2023, the province closed and begun selling all its liquor stores citing large revenue declines. [16] This move has impacted 284 jobs. However, the Province will be selling all 34 retail permits to new private operators and expects the job losses to be absorbed by new opportunities at the private liquor stores. [17] Moreso, there are two upcoming minimum wage increases – from $13/hr to $14/hr in 2023 and then to $15/hr in 2024 – that could draw workers into the labour market, especially in retail. [18] Wholesale could also attract workers as it recorded the third largest boost in average hourly wage among all sectors in the province, between 2021 and 2022, from $22.15/hour to $26.50/hour. [19]
Employment Outlook
Output and employment prospects in the retail sector is driven by consumer spending, which is tied to how well the economy is doing and the strength of job growth. Saskatchewan's economy is expected to slow down in 2023, growing by 1.6% compared to 5.3% in 2022, and employment should only grow by 0.7% in 2023. Moreso, high inflation and interest rate are expected to curtail consumer spending on durable goods. [20] These trends project limited job prospects for the retail sector in the short term.
However, growth in retail sales in the first and second quarter of 2023 portray resilient consumer spending despite high inflation and recession predictions, especially in areas of the country with lower cost of living. [21], [22], [23] In Saskatchewan, households are less indebted compared to other provinces due to lower residential costs, and as such, consumers are expected to withstand higher interest rates better than other provinces. [24] Unsurprisingly, the province ranked third in Canada for highest retail sales per capita for Q1 2023, and it's real consumption expenditure is projected to rise by 0.5% in 2023. [25], [26] The resiliency in consumer spending bodes well for the retail sector and may bump retail job prospects from limited to moderate in 2023.
Saskatchewan's economy should pick up over the succeeding two years, growing by 2.0% in 2024 and 2.1% in 2025. This will be accompanied by an annual employment growth of 1.1%. And according to the recent Index of Consumer Confidence, consumers in Saskatchewan expect to make major purchases as they remain optimistic about future job prospects and their current and future finances. Overall, retail sales in the province are projected to grow by 2.1% in 2023, 5.4% in 2024 and 4.0% in 2025, providing a moderate to strong job prospect over outlook period. [27], [28]
Seven in ten workers in Saskatchewan's wholesale trade sector are employed in four subsectors – machinery equipment and supplies; building materials and supplies; motor vehicle and parts; and food and beverages. Besides consumer spending which drives jobs in the food and beverages and motor vehicle subsectors, job prospects in the machinery equipment and building materials and supplies subsectors will be driven by a positive outlook for the major industries these subsectors sell to – agriculture, mining, manufacturing, and construction.
The outlook for Saskatchewan's agricultural sector remains positive as the province is expected to record the highest increase in farm receipts among all provinces. The sector's real output is projected to grow by 14.6% in 2023. [29] This should help sustain recent job growth in agricultural supplies and farm machinery and equipment wholesale distribution. A strong mining outlook and industrial investment should also sustain recent job growth in machinery equipment and supplies, and mining and industrial machinery equipment distribution subsectors. BHP's Jansen Potash project remains the most notable investment venture, but several canola and uranium projects are also in development stages, not to mention Cameco's 12-year uranium supply deal with Ukraine and production ramp up at it's Cigar Lake and McArthur River mines. [30], [31]
High interest rates and declining real estate prices are slowing down residential construction in Saskatchewan. But non-residential investments remain strong and should support job opportunities in the building material and supplies, and construction machinery and equipment wholesale subsectors. Private and public sector infrastructure spending such as the natural gas power plant in Moose Jaw, BHP's $7.5 billion Jansen potash mine project, NexGen's $1.5 billion mine and mill development, and the provincial government's $30 billion seven-year infrastructure budget should maintain an elevated demand for wholesalers in the construction space. [32], [33], [34]
Endnotes
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Statistics Canada. ESDC custom table. ↑
-
Ibid. ↑
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Statistics Canada. Table 14-10-0064-01. Employee wages by industry, annual. Accessed June 14, 2023. ↑
-
Statistics Canada. ESDC custom table. ↑
-
Statistics Canada (September 9, 2021). Impact of COVID-19 on businesses in retail trade, third quarter of 2021. ↑
-
Statistics Canada. Wholesale trade, sales (x 1,000). ↑
-
Statistics Canada. ESDC custom table. ↑
-
Statistics Canada. Table 14-10-0023-01 Labour force characteristics by industry, annual (x 1,000). ↑
-
Government of Saskatchewan. Trade Data. ↑
-
Government of Saskatchewan. Saskatchewan's Dashboard – Crop Production. ↑
-
Statistics Canada. ESDC custom table. ↑
-
Ibid. ↑
-
Government of Saskatchewan. Saskatchewan's Growth Plan. ↑
-
Saskatchewan Food Industry Development Centre Inc. Agri-Food Innovation Centre. ↑
-
Government of Saskatchewan. Saskatchewan's Growth Plan. ↑
-
Western Investor (October 28, 2022). Saskatchewan closing, selling all its liquor stores. ↑
-
SaskToday.ca (October 28, 2022). Details emerge about SLGA exit from retail. ↑
-
Government of Saskatchewan (May 3, 2022). Minimum Wage Will Increase to $13 Per Hour This Year, $15 by 2024. ↑
-
Statistics Canada. Table 14-10-0326-01 Job vacancies, payroll employees, job vacancy rate, and average offered hourly wage by industry sector, quarterly, unadjusted for seasonality. ↑
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The Conference Board of Canada (April 6, 2023). Onwards and Upwards: Saskatchewan's Three-Year Outlook. ↑
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CTV News (June 19, 2023). 'Retail has nine lives' in Canada as 2023 consumer spending strong – for now: report. ↑
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Royal Bank of Canada. RBC Consumer Spending Tracker. Accessed June 23, 2023. ↑
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Colliers. Colliers Retail Outlook Report 2023. ↑
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The Conference Board of Canada (April 6, 2023). Onwards and Upwards: Saskatchewan's Three-Year Outlook. ↑
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The Conference Board of Canada (April 6, 2023). Onwards and Upwards: Saskatchewan's Three-Year Outlook. ↑
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Colliers. Colliers Retail Outlook Report 2023. ↑
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The Conference Board of Canada (April 6, 2023). Onwards and Upwards: Saskatchewan's Three-Year Outlook. ↑
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The Conference Board of Canada (June 14, 2023). Households March Forward With Spending Increases: Index of Consumer Spending – May 2023. ↑
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The Conference Board of Canada (April 6, 2023). Onwards and Upwards: Saskatchewan's Three-Year Outlook. ↑
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The Conference Board of Canada (April 6, 2023). Onwards and Upwards: Saskatchewan's Three-Year Outlook. ↑
-
CTV News (February 9, 2023). Saskatoon-based Cameco strikes record supply agreement with Ukraine's state-owned nuclear utility. ↑
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BuildForce Canada. Construction and Maintenance Looking Forward – Saskatchewan Highlights 2022-2027. ↑
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Conference Board of Canada (February 28, 2023). Coming Out of the Fog: Provincial Three-Year Outlook. ↑
-
Government of Saskatchewan. Budget 2023-24 – Investing in Capital. ↑
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