Information and Cultural Industry (NAICS 51): Quebec, 2024
HIGHLIGHTS
This sector represents 2.2% of total employment in Quebec. Its dominant subsector in terms of gross domestic product and employment is the broadcasting and telecommunications industry.
In 2023, real GDP in the sector fell by 0.6% to $13.2 billion, while all industries (0.2%) and all service industries (1.3%) have shown slight growth.
Employment is expected to grow over the forecast period.
ABOUT THE SECTOR
Sector composition and importance
The activities of this sector consist of the creation and distribution of information and cultural products. They can be distributed through television, radio or the Internet. More officially, the main sub-sectors of this sector are publishing, motion picture and sound recording, broadcasting, telecommunications and data processing and hosting industries.
The information and cultural industries employed an average of 96,400 workers in Quebec between 2021 and 2023. This represents 2.2% of total employment in the province. The importance of the sector to the Quebec economy in terms of employment is slightly higher to that for the country and for Ontario.
Employment levels are very unevenly distributed from one segment to another. Almost half of the jobs are in broadcasting and telecommunications. The motion picture and sound recording industry is next, accounting for more than one in four jobs. Finally, the combination of publishing and other information services and data processing encompasses the last quarter of jobs.
| Publishing industries | Motion picture and sound recording industries | Broadcasting and telecommunications | Information and data processing services |
|---|---|---|---|
| 16.9% | 28.8% | 46.8% | 7.5% |
Geographical distribution of employment
The majority of jobs, or over three quarters, are in Montréal's census metropolitan area. The sector's share in Montréal's economic region is the highest at 3.1%, compared to 2.2% for the entire province.
Table A1 shows a more detailed geographical distribution of employment.
TABLE 1 Employment by region
| Region | Average employment 2021-2023 | Share of total employment |
|---|---|---|
| Canada | 389,100 | 2.0% |
| Quebec | 96,400 | 2.2% |
| Ontario | 160,800 | 2.1% |
WORKFORCE
Workforce characteristics
The workforce is predominantly male, with men holding 6 out of 10 positions. Their share of jobs in this sector is higher than that of men in all sectors (52.5%). In addition, workers are more likely to have a university degree in this sector compared to all sectors.
Between 2021 and 2023, 9 out of 10 jobs were full-time, exceeding the industry average for the same period (8 out of 10). In addition, this industry has more workers between the ages of 25 and 54 than all sectors, and consequently fewer workers between the ages of 15 and 24 and 55 and over.
A large proportion of workers were employees. On the other hand, the film and sound recording segment has a high proportion of self-employed workers (20%), due to its program and film production activities.
Producers, directors and choreographers account for 6.0% of employment, making them the leading occupations in the sector. Graphic designers (4.3%) ranked second, followed closely by telecommunications and cable installation technicians with a share of 3.8%.
TABLE 2 Main occupations in the sector
| Occupation | Average employment 2021-2023 |
Sector share |
|---|---|---|
| 51120 Producers, directors, choreographers and related occupations | 5,395 | 6.0% |
| 52120 Graphic designers and illustrators | 3,885 | 4.3% |
| 72205 Telecommunications equipment installation and cable television service technicians | 3,450 | 3.8% |
| 52113 Audio and video recording technicians | 2,870 | 3.2% |
| 64100 Retail salespersons and visual merchandisers | 2,795 | 3.1% |
RECENT EVOLUTION
Between 2013 and 2019, employment levels followed a generally downward trend, resulting in an average decline of 2.9% per year, in contrast with an average growth of 1.1% across all industries. This decline is linked to significant declines in employment in all segments, particularly telecommunications. The situation was reversed in 2020. While all industries saw a decline in employment levels, the information and cultural industries experienced strong growth. The magnitude of this recent growth is partially attributable to the restrictions that were imposed on the population with the arrival of the pandemic in 2020. The fact that households have been spending more time in their homes has encouraged the increase in demand for home entertainment. Several segments have benefited, such as video game publishers, film production and sound recording, and audio and video streaming.
New technologies and digital platforms have undoubtedly contributed to job creation in the industry, with employment levels in 2023 far exceeding pre-pandemic levels. In fact, the employment growth rate for the information and cultural industries in 2023 (13.3%) is more than five times faster than that of all industries (2.3%). However, 2023 ended with a wave of layoffs in the telecommunications sector.
Real gross domestic product (GDP) for this industry grew by an average of 2.9% per year over the period of 2014 to 2023, higher than the average annual growth for all industries. Real GDP has grown for 8 consecutive years but 2023 broke this trend. That year, real GDP for the information and cultural industries decreased by $79.4 million to $13.2 billion. Two-thirds of this sum comes from the sector contribution generated by the broadcasting and telecommunications segment. The numerous layoffs announced in 2023 have undoubtedly had an impact on the sector's production, as the information and cultural industry cluster had a 0.6% decline in output, while the industry as a whole had an annual growth of 0.2%. The publishing, broadcasting, film and sound recording segments all endured significant declines in production in 2023.
Investment in the information and cultural industries has been particularly strong in recent years. However, in 2023, capital investment and repairs have decreased compared to 2022. Nevertheless, they remained strong, exceeding pre-pandemic levels.
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Real GDP | 100 | 103 | 105 | 109 | 112 | 119 | 119 | 125 | 129 | 129 |
| Employment | 100 | 94 | 93 | 90 | 87 | 83 | 92 | 99 | 119 | 119 |
* Data is expressed as an index where 2014 = 100
JOB PERSPECTIVES
Recent employment growth in the information and cultural industries is above the industry average, and is set to continue, albeit at a more moderate pace.
It should be remembered that employment in the industry benefited from the lockdown in 2020. Employment in this industry rose to a high in July 2023 in Quebec, but since November of the same year there has been a downward trend. The decline in employment in the publishing, broadcasting and telecommunications segments is the main culprit.
The transformation of conventional media, resulting from profound changes in consumer habits, will exert negative pressure on employment. The wave of layoffs announced in the telecommunications sector toward the end of 2023, as well as those in regional media led to the sector's relative slowdown. The announced restructurings are major. Job creation has been put on hold by many industry players, not to mention the fact that the abolition of many job vacancies is further slowing down job creation.
Long recognized as an important hub of the knowledge and high-tech economy, the software and video game publishing segment could deteriorate in the longer term. The abolition of the Quebec government tax credits for the production of multimedia titles announced in early 2024 will be difficult to withstand. Despite the presence of several conditions that support its expansion, such as the sustained development of the digital economy, artificial intelligence, and several technological innovations generated by the presence of its universities, Montreal has just lost a major advantage for video game publishers compared to other cities in Europe and Australia.
The industry is also influenced by the economic climate since it relies essentially on household consumption spending and corporate investments. The latest data published by the Observatoire de la culture et des communications du Québec regarding trends in film screenings and attendance at movie theatres and drive-ins, show growth for both these indicators in 2022-2023. However, these indicators remain lower than their pre-pandemic levels. Over the forecast period, employment in film and video presentation is set to increase.
In the telecommunications segment, the most labour-intensive, demand remains high for wireless access, fast communications and diversified content. 5G networks, the increased use of artificial intelligence, the continuation of telework to an extent and the deployment of the Internet of things should continue to sustain business and household spending on telecommunications services. New jobs requiring specialized skills, such as IT professionals and data processing experts, should be created. The broadcasting sector is experiencing less happy times, with the drop in the numbers of listeners and viewers and, by extension, advertising income.
The film and sound recording production segment should continue to benefit from the relative weakness of the Canadian dollar against the US dollar. At the same time, however, foreign production could be affected by international competition, since higher production costs in Quebec, linked in particular to higher earnings, undo some of the advantages due of the exchange rate.
Comparison with all industries
While employment in the industry accounted for almost 6% of total job growth in Quebec over the 2021-2023 period, the contribution of the information and cultural industries to total job growth in Quebec will be lower over the forecast period, while remaining positive. At the same time, overall employment in Quebec should show slightly positive growth.
Other important aspects
The double Hollywood strike (writers and actors) in May 2023 may have ended after five months of labour disputes, but these strikes will still have an impact on the film and sound recording segment at the start of the forecast period. Several theatrical releases have been postponed in 2024, and film, series and television program shootings have been postponed, resulting in numerous job losses in visual effects studios, film sets, animation, sound recording and post-production.
Quebec attracted fewer foreign filming projects (13) in 2023. The Quebec Film and Television Council anticipates another slow down in 2024. Foreign producers are increasingly turning to other locations with more competitive tax incentives.
We must not forget that there is a general climate of uncertainty in all industry segments: the future of local and regional print media is compromised by the use of social networks for information, and telecommunications infrastructures are at the mercy of extreme weather events that weaken existing networks. But above all, the use of artificial intelligence could greatly modify the tasks of several occupations in the sector.
In conclusion, the industry's big players are going through turbulent times, with a drop in advertising income and changes in consumer habits. The web giants- Alphabet and Meta- are here to stay and will continue to eat into the profits of more traditional companies, even if they pay royalties. Maintaining a positive path for employment will depend on modernizing the laws governing the sector, which will inevitably take time and is unlikely to be completed by the end of the forecast period.
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 Analysis Directorate, Service Canada, Québec Region. For further information, please contact the Labour Market Analysis Directorate at: contact the LMI team
ANNEX
TABLE A1
Geographic Distribution of Employment and Employment Outlook in Quebec, average 2021-2023
| Information and Cultural Industry | |||
|---|---|---|---|
| Region | Share of employment in Quebec |
Share of employment in the region |
AAGR* |
| QUEBEC as a whole | 100.0% | 2.2% | 8.9% |
| Capitale-Nationale | 5.0% | 1.2% | 17.9% |
| Chaudière-Appalaches | 1.8% | 0.8% | 31.8% |
| Estrie | 1.9% | 1.1% | 33.8% |
| Lanaudière | 5.8% | 2.1% | 6.6% |
| Laurentides | 6.8% | 2.0% | 12.5% |
| Montérégie | 18.0% | 2.1% | 11.3% |
| Outaouais | 3.9% | 1.8% | 18.8% |
| Saguenay–Lac-Saint-Jean | 1.7% | 1.3% | 6.6% |
| Montréal(metropolitan area) | 75.0% | 3.1% | 6.2% |
* Average annual growth rate for last three years.
TABLE A2
Workforce Characteristics in Quebec, average 2021-2023
| Information and Cultural Industry | |||
|---|---|---|---|
| Characteristic | Volume | Share in the sector | Share in all sectors |
| Total employment | 96,400 | 100.0% | 100.0% |
| Males | 61,000 | 63.3% | 52.5% |
| Females | 35,400 | 36.7% | 47.5% |
| Aged 15-24 | 7,500 | 7.8% | 13.2% |
| Aged 25-54 | 74,300 | 77.1% | 64.9% |
| 55 years of age or older | 14,600 | 15.1% | 21.9% |
| Full-time employment | 86,600 | 89.9% | 81.9% |
| Part-time employment | 9,800 | 10.1% | 18.1% |
| Employee | 89,300 | 92.7% | 88.5% |
| Autonomous worker | 7,000 | 7.3% | 11.5% |
| No diploma | x | x | 9.3% |
| Graduated High School | 12,400 | 12.3% | 17.7% |
| Post secondary certificate or diploma | 39,700 | 38.6% | 41.2% |
| University degree | 42,300 | 47.3% | 31.7% |
x: Confidential under the provisions of the Statistics Act as less than 1,500.
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