Professional, Scientific, and Technical Services (NAICS 54): Ontario, 2025
Highlights
- In 2024, there were 900,000 people employed in Ontario’s professional, scientific, and technical services (PSTS) industry, comprising 11.0% of Ontario’s workforce.
- Employment in the PSTS industry increased by 7.5% in 2024.
- Over the 2025-2027 period, the PSTS sector is expected to experience moderate job growth in Ontario. The degree of employment growth will likely vary between groups within this industry, as each industry group faces unique pressures.
About the Sector
Composition and importance of the sector
The professional, scientific, and technical services sector is comprised of firms that engage in activities where human capital is the major input. The defining feature of this sector is that most of the sub-industries have production processes that rely heavily on the skillset of the employees. Some of the major areas within this sector are legal services; accounting, tax preparation, bookkeeping and payroll services; architectural, engineering and design services; computer system design services; management, scientific and technical consulting services; scientific research and development services; and advertising, public relations, and related services.
In 2024, the sector employed 900,000 people, comprising 11.0% of total employment in Ontario. The sector contributed over $77.0 billion to the provincial economy in 2024 (8.7% of provincial GDP). The sector’s GDP grew by 2.8% (+$2.1 billion) in 2024; in comparison, provincial GDP growth was 1.7%.
| Legal Services | Accounting and Tax Preparation | Architectural, Engineering and Design Services | Computer System Design Services | Management, Scientific and Technical Services | Other Industry Groups | |
|---|---|---|---|---|---|---|
| 10% | 11% | 19% | 38% | 10% | 12% |
Description of graphic in accessible text
A pie graph that shows the employment breakdown by industry group in 2024. Computer system design services made up the largest share of employment at 38%, followed by architectural, engineering and design services (19%), accounting and tax preparation (11%), management, scientific and technical services (10%), and legal services (10%). The remaining 12% of employment is made up of a mix of smaller industry groups.
Source: Statistics Canada, Labour Force Survey, Custom Table
Geographical distribution of employment
This industry is particularly prevalent in the Toronto economic region (ER) where 60.9% of the workers are employed. The second largest employment cluster is in the Ottawa ER, where 9.9% of employment is located.
The sector is also over-represented in both the Toronto and Ottawa ERs: 14.2% of Toronto’s employment and 10.7% of Ottawa’s employment is in this industry. In comparison, the sector makes up 11.0% of total employment within the province.
| Ottawa | 89,400 | 9.9% |
| Kingston-Pembroke | 19,500 | 2.2% |
| Muskoka-Kawarthas | 12,800 | 1.4% |
| Toronto | 548,500 | 60.9% |
| Kitchener-Waterloo-Barrie | 80,600 | 9.0% |
| Hamilton-Niagara Peninsula | 67,200 | 7.5% |
| London | 31,000 | 3.4% |
| Windsor-Sarnia | 21,100 | 2.3% |
| Stratford-Bruce Peninsula | 11,900 | 1.3% |
| Northeast | 14,000 | 1.6% |
| Northwest | 4,000 | 0.4% |
Source: Statistics Canada, Labour Force Survey, Custom Table
*Note: Totals may not sum due to rounding.
Workforce
Workforce characteristics
- Approximately 58.5% of the sector’s labour force is male, higher than all industries across Ontario (52.8%).
- 89.1% of the sector’s workforce are full-time employees, higher than the provincial labour market as a whole (82.4%).
- The proportion of the sectors workforce with a university degree (41.7%), is significantly higher than Ontario’s labour market as a whole (44.1%).
- The average hourly wage of workers in the PSTS sector in Ontario was $37.60 in 2024. This was higher than the provincial average of $30.50 across all sectors.
| 21222 Information systems specialists | 64,600 | 5.4% |
|---|---|---|
| 11202 Professional occupations in advertising, marketing and public relations | 58,100 | 4.9% |
| 21231 Software engineers and designers | 52,300 | 4.4% |
| 21232 Software developers and programmers | 52,300 | 4.4% |
| 20012 Computer and information systems managers | 49,200 | 4.1% |
| 65310 Light duty cleaners | 45,800 | 3.8% |
| 41101 Lawyers and Quebec notaries | 44,300 | 3.7% |
| 11201 Professional occupations in business management consulting | 36,600 | 3.1% |
| 12200 Accounting technicians and bookkeepers | 29,900 | 2.5% |
| 64410 Security guards and related security service occupations | 27,800 | 2.3% |
Source: Statistics Canada, Labour Force Survey, Custom Table
*Note: The NOCs listed make up approximately half of those employed in the sector.
Recent History
The professional, scientific, and technical services sector experienced a moderate employment growth rate of 5.9% over the last 5 years (2020 – 2024). Employment growth in PSTS was higher than the growth rate across all industries in Ontario over the same time period, which was around 2.0%. In 2024, the sector increased by 7.5%, adding 63,100 jobs. Majority of the growth (91.4%) came from the computer system and architectural, engineering, and design services industry groups.
Computer system design services
Beginning in 2022, the computer system design services segment faced significant disruption due to widespread layoffs across the global technology industry. Initial workforce reductions were driven by pandemic-era over-hiring corrections, slowing economic conditions, and reduced consumer spending. These factors triggered numerous large-scale restructurings across multinational and Canadian-based technology firms.
The trend persisted through 2023–2025, with layoffs continuing as companies streamlined operations and shifted priorities toward artificial intelligence (AI) and automation. This restructuring has reduced demand for traditional IT roles and entry-level positions, as routine tasks such as coding and reporting are increasingly automated. Reports indicate that hiring of recent graduates in technology has declined significantly, reflecting the vulnerability of entry-level roles to automation.
Despite the various challenges the industry group is facing, heavy investment in AI may have contributed to the positive employment growth witnessed in 2024. According to a report from Deloitte, AI-related jobs contributed between $42 billion and $52 billion to Ontario’s GDP from 2019 to 2024, representing roughly half of Canada’s total AI-driven economic output of $82 billion to $100 billion.
Architectural, engineering and design services
Employment in the architectural, engineering and design services industry group grew by 11.9% (+17,800 jobs) in 2024. This sector’s performance remains closely tied to construction activity and infrastructure development, as demand for design and engineering services rises during planning and execution phases of major projects.
The Ontario government has announced several public infrastructure investment packages expected to increase demand for services within this industry group. More than $200 billion in capital investments have been allocated for highways, public transit, healthcare facilities, education projects, and municipal housing. These commitments are likely to support continued employment growth in the industry group, given its strong link to infrastructure planning and delivery.
However, the sector faces notable challenges. Tariffs on key materials used in architecture and engineering can increase costs, disrupt supply chains, and delay project timelines. Additionally, a softening real estate market in Ontario could lead to project cancellations or delays, tempering demand for design and engineering services.
Government infrastructure investments have helped offset some negative impacts, supporting employment growth in the industry group throughout 2024. Strategic spending on large-scale projects has contributed to stability in Ontario’s architectural and engineering services industry, even as broader economic conditions remain uncertain.
| Year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Employment | 100.0 | 103.7 | 105.4 | 112.7 | 115.9 | 122.7 | 125.6 | 137.4 | 145.7 | 151.9 | 163.3 |
| GDP | 100.0 | 103.6 | 109.3 | 113.5 | 120.7 | 125.7 | 122.4 | 136.6 | 150.1 | 157.8 | 162.2 |
| Average Hourly Wage | 100.0 | 102.8 | 108.3 | 109.0 | 108.4 | 113.2 | 119.8 | 120.8 | 131.5 | 140.3 | 150.1 |
Description of graphic in accessible text
This line graph shows changes in three indicators related to Ontario’s professional, scientific and technical services sector over a 10-year period. Employment and GDP increased between 2014 and 2019 before falling slightly in 2020, while average hourly wage saw a slight uptick in 2020. From 2020 onwards, growth in all three indicators has been steady, with GDP and employment outpacing wages.
Sources: Canada, Labour Force Survey, Custom Table; Gross Domestic Product By Industry, Table: 36-10-0711-01; Average hourly earnings for employees paid by the hour, by industry, Table 14-10-0064-01
*Data are expressed as an index, where year 2014 = 100%
Employment Outlooks
Over the 2025-2027 period, the professional, scientific, and technical services industry is expected to experience moderate job growth in Ontario. The degree of employment growth is dependent on individual groups within this industry as there is variability in the internal and external pressures faced by each industry group.
Computer System Design Services
The overall slowdown in the global technology cluster is expected to temper employment growth forecasts for this industry group. Many companies have restructured operations to prioritize emerging technologies such as artificial intelligence (AI), which has reduced demand for some traditional IT roles.
However, AI adoption is also creating new opportunities that may partially offset these declines. The 2025 federal budget allocates more than $1 billion over five years to strengthen Canada’s AI and quantum computing ecosystems. These investments are designed to expand AI compute capacity, develop sovereign cloud infrastructure, and integrate AI tools into federal operations—initiatives expected to generate demand for specialized technology roles. In addition, Ontario’s Critical Technologies Initiative includes strategic commitments to accelerate AI adoption and commercialization, which may provide a boost to jobs within the technology field.
Architectural, engineering and design services
The performance of this sector is closely tied to the level of construction activity within the province. This industry group is expected to sustain employment due to the numerous provincial investments in transportation, community, healthcare, education, and AI infrastructure. At the federal level, initiatives such as the Build Canada Homes, aimed at increasing housing supply, is expected to complement provincial efforts and reinforce long-term demand for employment within this industry group.
Key trends affecting the outlook of the professional, scientific and technical services sector
- Continued slowdown in the global technology industry.
- Investment in artificial intelligence.
- Infrastructure investment and population growth driving demand for construction may lead to increased demand for services within the architectural, engineering and design services industry group.
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.
Portions of this sector profile were prepared with support from artificial intelligence (AI) tools, in accordance with Employment and Social Development Canada (ESDC) guidelines. All AI-assisted content has been reviewed for accuracy and compliance with ESDC standards.
Prepared by: Labour Market and Socio-economic Information Directorate, Service Canada, Ontario Region
For further information, please contact the Labour Market Information Directorate.
Appendix
| 2022-2024 Average | 2022-2024 Average | |
| Ontario | 100.0% | 11.0% |
| Ottawa | 10.7% | 11.8% |
| Kingston-Pembroke | 2.1% | 7.7% |
| Muskoka-Kawarthas | 1.4% | 6.5% |
| Toronto | 59.7% | 13.6% |
| Kitchener-Waterloo-Barrie | 9.4% | 9.9% |
| Hamilton-Niagara Peninsula | 7.6% | 8.4% |
| London | 3.4% | 7.5% |
| Windsor-Sarnia | 2.3% | 6.1% |
| Stratford-Bruce Peninsula | 1.3% | 6.9% |
| Northeast | 1.6% | 5.4% |
| Northwest | 0.5% | 4.4% |
Source: Statistics Canada, Labour Force Survey, Custom Table
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|---|---|---|---|---|---|
| Employment, 2024 | Share of Total (%) | AAGR (%)* | Share of Total (%) | AAGR (%)* | |
| Employment | 900,000 | 100.0% | 5.1% | 100.0% | 1.8% |
| Male | 526,800 | 58.5% | 5.5% | 52.8% | 1.9% |
| Female | 373,100 | 41.5% | 4.6% | 47.2% | 1.7% |
| 15-24 years old | 56,100 | 6.2% | 6.1% | 12.6% | 1.0% |
| 25-54 years old | 676,300 | 75.1% | 5.5% | 66.2% | 1.8% |
| 55 years and older | 167,500 | 18.6% | 3.5% | 21.2% | 2.6% |
| Worked full-time | 802,100 | 89.1% | 5.4% | 82.4% | 2.1% |
| Worked part-time | 97,800 | 10.9% | 2.4% | 17.6% | 0.8% |
| Self-employed | 214,000 | 23.8% | 1.9% | 13.5% | 0.9% |
| Employees | 686,000 | 76.2% | 6.4% | 86.5% | 2.0% |
| Permanent job | 652,300 | 72.5% | 6.9% | 77.0% | 2.2% |
| Temporary job | 33,600 | 3.7% | 1.3% | 9.5% | 0.8% |
| Less than high school | 6,500 | 0.7% | -1.8% | 5.8% | -2.0% |
| High school graduate | 71,600 | 8.0% | 0.6% | 21.2% | -0.9% |
| Postsecondary cert. or diploma | 193,800 | 21.5% | 2.8% | 31.3% | 1.3% |
| University degree | 627,800 | 69.8% | 7.0% | 41.7% | 5.1% |
Sources: Statistics Canada, Labour Force Survey, Custom Tables
*Average annual growth rate for last ten years available data