Over the past century, major shifts in employment have taken place
between sectors of the economy. In 1891, more than 45 percent of
Canadian employment was in agriculture, and only 20 percent in services
(including government). By 2017, agriculture accounted for only 1.5
percent of employment, while services had increased to 79 percent. The
share of employment in manufacturing increased from 26 percent in 1891
to 32 percent just after the Second World War, and then declined to
below 20 percent by 2017.
(are available from Statistics Canada, Table 282-0008.)Source: Based on Canadian Census, various years, and author’s calculations. The most recent data
The dramatic rise in service-sector employment, and the decline in the
relative importance of agriculture and manufacturing, is not just a
Canadian phenomenon. The same pattern is evident in all developed
countries. In general, this increased importance of services reflects our
spending patterns as our incomes increase—spending relatively less on