NEW: Statistics Canada Estimates the Value of Digital Economic Activities

Economy Digital

May 13, 2019

Advancements in technology and the Internet have fundamentally changed how people and businesses interact and how they produce, distribute and consume goods and services. As technological advancement continues and digitalization rapidly expands to more segments of the economy, there is an increasing need to accurately measure and assess its impacts.

Statistics Canada has released for the first time estimates of the economic value of digital economic activities, that is, activities that enable or are highly affected by digitization. Initial estimates are presented on the value, growth and nature of digital economic activities in Canada, the provinces and the territories.

To enhance these initial estimates and ensure that statistical measures reflect emerging economic phenomena, Statistics Canada will continue to explore innovative ways to measure the digitalization of the economy. This includes moving beyond traditional household and business surveys — many of which are not well suited to capturing digital economic activities — to using new data sources and methods, such as administrative data, crowdsourcing and web scraping.

Growth of digital economic activities outpaces economy-wide gross domestic product

The nominal gross domestic product (GDP) associated with digital economic activities was $109.7 billion, or 5.5%, of total economic activity in Canada in 2017. Digital economic activities, commonly referred to as the digital economy, include activities that enable digitization or are highly affected by it. For example, the digital economy includes the information technology equipment that it relies upon to function, as well as e-commerce transactions and the digital delivery of products to consumers.

While the digital economy is not an industry, to give a sense of its scale, it was larger as a proportion of the total economy than mining, quarrying and oil and gas extraction (4.8%), transportation and warehousing (4.6%) and utilities (2.4%) in 2015.

From 2010 to 2017, the nominal GDP of digital economic activities (+40.2%) grew at a faster pace than the overall economy (+28.0%). On an annual basis, the digital economy increased more than the total economy every year except in 2011 and 2017, which were years of strong growth in the energy sector.

Telecommunications was the largest contributor to the digital economy 

Telecommunications, part of the digital-enabling infrastructure domain, was the largest contributor to the digital economy in Canada. However, its contribution declined from 36.9% in 2010 to 28.7% in 2017. Over the same period, the contribution of e-commerce more than doubled, from 5.5% of the digital economy to 12.4%.

Digital economy job growth more than four times that of the total economy 

In 2017 there were 886,114 jobs associated with digital economic activities, representing 4.7% of all jobs in Canada.

While the proportion of digital economy jobs was smaller than the share of GDP and output, jobs associated with the digital economy (+37.0%) grew at more than four times the pace of economy-wide job growth (+8.6%) from 2010 to 2017.

The largest contributors to digital economy jobs in 2017 were support services (30.2%), followed by e-commerce (18.6%). The hardware domain (6.4%) represented the smallest share of digital economy jobs.

Contribution of the digital economy varies by province and territory

In 2017, digital economic activities accounted for the largest share of total economic activities in Ontario, Quebec and British Columbia. The proportion of digital economic activities in relation to overall economic activity was the smallest in the three territories and in Saskatchewan.

From 2010 to 2017, nominal GDP of the digital economy grew in every province and territory. However, Manitoba, Yukon and Nunavut saw slower digital economy growth over the seven-year period when compared with nominal economy-wide GDP.

On a regional basis, British Columbia (+49.1%) and Quebec (+41.0%) saw the largest gains in digital economy jobs from 2010 to 2017, while Newfoundland and Labrador (-9.1%) and the Northwest Territories (-3.5%) reported the only declines.

Source: Statistics Canada, https://www150.statcan.gc.ca/n1/daily-quotidien/190503/dq190503a-eng.htm

Related Articles


Latest Articles


Changing Scene

  • Leviton Canada Announces Structural Changes to the Sales Organization

    Leviton Canada Announces Structural Changes to the Sales Organization

    January 16, 2025 Leviton Canada is pleased to announce structural changes to its Canadian Sales Department, effective January 1, 2025. These changes aim to enhance sales synergy, optimize resource allocation and strengthen their relationships with customers across the country. Jason Denstedt now assumes the role of Vice-President of National ED Sales, overseeing the national Electrical… Read More…

  • Nesco Announces New Sales Agent for Northern Ontario

    Nesco Announces New Sales Agent for Northern Ontario

    January 16, 2025 Nesco is pleased to announce the appointment of Sean Atkinson at Resilient Sales as their sales agent for Northern Ontario, effective January 1st, 2025. “Sean is replacing Steve Wallace, who after decades of providing tireless customer service and sales support is focusing on family and enjoying some well-deserved downtime in retirement,” commented… Read More…

  • ABB and Wieland Electric Partner to Redefine Efficiency in Modular Construction

    ABB and Wieland Electric Partner to Redefine Efficiency in Modular Construction

    January 15, 2025 ABB Electrification’s Smart Buildings Division and Wieland Electric have announced a strategic partnership to revolutionize modular and serial construction with advanced prefabricated electrical installation systems. The collaboration combines Wieland’s innovative connector technology with ABB’s extensive portfolio – including switches, sockets, installation boxes, energy distribution, and smart home solutions – to deliver plug-and-play… Read More…

  • ABB Expands Residential Energy Management Portfolio in North America with Lumin Acquisition

    ABB Expands Residential Energy Management Portfolio in North America with Lumin Acquisition

    January 15, 2025 ABB has announced the acquisition of Lumin, a U.S.-based pioneer and leading provider of responsive energy management systems, to expand its home energy management capabilities in the North American residential sector. The acquisition follows a strategic minority investment by ABB into the company in 2023. Financial terms of the transaction were not… Read More…