Hill Strategies Research on the Economic Benefits of Culture

The latest issue of Hill Strategies' Arts Research Monitor includes a detailed examination of various categories and subjects as well as key provincial and territorial statistics from Statistics Canada’s report on Provincial and Territorial Culture Indicators (2010 to 2014), which provides data on the direct economic and employment impacts of the arts, culture, and heritage.

Click the link within each summary below to access the full report. Click here for the pdf version of this issue of Hill Strategies' Arts Research Monitor. 
 

Notes regarding Provincial and Territorial Culture Indicators

Statistics Canada, May 11, 2016
http://www.statcan.gc.ca/pub/13-604-m/13-604-m2016081-eng.htm

Statistics Canada’s report on Provincial and Territorial Culture Indicators (PTCI) measures the direct economic and employment impact of the arts, culture, and heritage, similar to the 2010 Culture Satellite Account (CSA). The PTCI estimates are based on economic projections, so they should not be considered as precise as the CSA data.

Both datasets capture direct impacts only, thereby excluding potential indirect and induced impacts of culture. (Indirect impacts would capture the re-spending of the expenditures of cultural organizations, and induced impacts would include the re-spending of wages earned by cultural workers and suppliers’ workers.)

Statistics Canada provides two sets of related estimates: culture products (i.e., production of culture goods and services from establishments in both culture and non-culture industries) and culture industries (i.e., production of culture and non-culture goods and services from establishments within the culture industries). In this summary, the culture industry estimates are used for comparisons with other sectors of the Canadian economy. As stated by Statistics Canada, “the industry perspective of the PTCI is more comparable to GDP by industry” than the product perspective. Data for specific areas within the cultural sector are only available from the product perspective.

In addition to the publication Provincial and Territorial Culture Indicators, the culture sector data in this summary are drawn from Statistics Canada’s CANSIM tables related to Culture and sport indicators by domain and sub-domain, by province and territory, product perspective (Table 387-0012) and industry perspective (387-0013). Data for other sectors of the economy are drawn from CANSIM Table 379-0030: Gross domestic product (GDP) at basic prices, by North American Industry Classification System (NAICS), provinces and territories.
 

National estimates from Provincial and Territorial Culture Indicators, 2010 to 2014

Statistics Canada, May 11, 2016

http://www.statcan.gc.ca/pub/13-604-m/13-604-m2016081-eng.htm

Using the industry perspective, Statistics Canada estimates that the direct economic impact of culture industries (also known as value added or gross domestic product) was $61.7 billion in Canada in 2014, or 3.3% of the country’s GDP. In 2014, there were 700,100 jobs directly related to culture industries, or 3.9% of the 18.1 million jobs in the country. (The jobs figures include full-time and part-time jobs, while part-year employment is included on a pro-rated basis.)

From the product perspective, the direct economic impact of culture products was estimated at $54.6 billion in Canada in 2014, or 3.0% of Canada's GDP. The employment estimate was 630,500 in 2014, or 3.5% of all jobs in the country. Some key contributors to the culture products GDP include:

• Audio-visual and interactive media: $18.4 billion.
• Visual and applied arts: $11.2 billion.
• Written and published works: $9.7 billion.
• Live performance: $2.5 billion.
• Heritage and libraries: $0.8 billion.
• Sound recording: $0.6 billion.

An estimate of the value added of the arts (i.e., separate from other cultural and heritage elements) is not possible from the data, since many elements of the arts are combined into broader categories with other cultural and heritage elements.

Nationally, the GDP of culture industries is much larger than the value added of agriculture, forestry, fishing, and hunting ($29 billion), accommodation and food services ($38 billion), and utilities ($43 billion). On the other hand, the value added of culture industries is less than that of transportation and warehousing ($78 billion), educational services ($95 billion), and construction ($140 billion).

The report also provides estimates of the direct economic impact of sports industries in 2014 ($6.1 billion, or 0.3% of Canada’s GDP). The direct economic impact of culture ($61.7 billion) is ten times larger than the sports estimate ($6.1 billion). Similarly, the jobs estimate in the culture sector (700,100) is almost seven times larger than the estimate for the sports sector (103,700).

Between 2010 and 2014, the GDP of culture industries grew by 16%. (All figures in this summary have not been adjusted for inflation.) During the same timeframe, the overall Canadian economy grew by 19%, resulting in a slight decrease in the culture industries’ share of the overall economy from 3.4% in 2010 to 3.3% in 2014.

Using the product perspective, specific culture products with an increase in value added that matched or exceeded the overall economy between 2010 and 2014 (19%) include audio-visual and interactive media (25%), heritage and libraries (23%), visual and applied arts (20%), and live performance (19%). Culture products that did not fare as well include sound recording (1% increase) and written and published works (3% decrease).
 

Western provincial estimates from Provincial and Territorial Culture Indicators, 2010 to 2014

Statistics Canada, May 11, 2016

http://www.statcan.gc.ca/pub/13-604-m/13-604-m2016081-eng.htm

British Columbia

The direct contribution of culture industries to GDP was $7.2 billion in British Columbia in 2014, or 3.3% of provincial GDP. The value added of culture industries in B.C., as a proportion of total provincial GDP, is equal to the national average (also 3.3%).

In 2014, there were 87,800 jobs directly related to culture industries in B.C., or 3.8% of the province’s 2.3 million jobs. This percentage is close to the national average (3.9%).

In B.C., the GDP of culture industries is larger than the value added of agriculture, forestry, fishing, and hunting ($4.4 billion), utilities ($4.7 billion), and accommodation and food services ($6.3 billion). However, the value added of culture is less than that of educational services ($11.3 billion), transportation and warehousing ($12.0 billion), and construction ($16.8 billion).

The PTCI also provides an estimate of the GDP of sports industries in 2014 ($979 million, or 0.4% of the province’s GDP). The value added of culture ($7.2 billion) is over seven times larger than the sports estimate.

Between 2010 and 2014, the GDP of culture industries grew by 17%, compared with a 16% increase in the overall provincial economy. This resulted in a slight increase in the culture industries’ share of the overall economy from 3.2% in 2010 to 3.3% in 2014.

Alberta

The direct contribution of culture industries to GDP was $6.5 billion in Alberta in 2014 (1.8% of provincial GDP). The value added of culture industries in Alberta, as a proportion of the province’s overall GDP, is well below the national average (3.3%).

In 2014, there were 61,800 jobs directly related to culture industries in Alberta, or 2.7% of the 2.3 million jobs in the province. This percentage is also below the national average (3.9%).

In Alberta, the GDP of culture industries is larger than the value added of agriculture, forestry, fishing, and hunting ($4.9 billion) and utilities ($5.2 billion). On the other hand, the value added of culture is less than that of accommodation and food services ($7.0 billion), educational services ($11.3 billion), transportation and warehousing ($15.4 billion), and construction ($42.3 billion).

The PTCI also provides an estimate of the GDP of sports industries in 2014 ($780 million, or 0.2% of the province’s GDP). The value added of culture ($6.5 billion) is over eight times larger than the sports estimate.

Between 2010 and 2014, the GDP of culture industries grew by 19%, compared with a 39% increase in the overall provincial economy. This resulted in a decrease in the culture industries’ share of the overall economy from 2.1% in 2010 to 1.8% in 2014.

Saskatchewan

The direct contribution of culture industries to GDP was $1.4 billion in Saskatchewan in 2014, or 1.8% of provincial GDP. The value added of culture industries in Saskatchewan, as a proportion of total provincial GDP, is well below the national average (3.3%).

In 2014, there were 15,600 jobs directly related to culture industries in Saskatchewan, or 2.6% of the province’s 700,000 jobs. This percentage is also below the national average (3.9%).

In Saskatchewan, the GDP of culture industries is larger than the impact of accommodation and food services ($1.2 billion). However, the value added of culture is less than that of utilities ($1.8 billion), educational services ($3.1 billion), transportation and warehousing ($3.8 billion), agriculture, forestry, fishing, and hunting ($5.3 billion), and construction ($7.0 billion).

The PTCI also provides an estimate of the GDP of sports industries in 2014 ($198 million, or 0.3% of the province’s GDP). The value added of culture ($1.4 billion) is about seven times larger than the sports estimate.

Between 2010 and 2014, the GDP of culture industries grew by 18%. During the same timeframe, the overall provincial economy grew by 31%, resulting in a decrease in the culture industries’ share of the overall economy from 2.0% in 2010 to 1.8% in 2014.

Manitoba

The direct contribution of culture industries to GDP was $1.6 billion in Manitoba in 2014 (2.7% of provincial GDP). The value added of culture industries in Manitoba, as a proportion of the province’s overall GDP, is below the national average (3.3%).

In 2014, there were 21,200 jobs directly related to culture industries in Manitoba, or 3.2% of the 658,000 jobs in the province. This percentage is also below the national average (3.9%).

In Manitoba, the GDP of culture industries is larger than the value added of accommodation and food services ($1.1 billion). On the other hand, the value added of culture is less than that of agriculture, forestry, fishing, and hunting ($2.1 billion), utilities ($2.2 billion), educational services ($3.2 billion), transportation and warehousing ($3.5 billion), and construction ($4.6 billion).

The PTCI also provides an estimate of the GDP of sports industries in 2014 ($167 million, or 0.3% of the province’s GDP). The value added of culture ($1.6 billion) is about ten times larger than the sports estimate.

Between 2010 and 2014, the GDP of culture industries grew by 22%, compared with a 19% increase in the overall provincial economy. There was no change in the culture industries’ share of the overall economy (2.7% in 2010 and 2014).
 

Ontario and Quebec estimates from Provincial and Territorial Culture Indicators, 2010 to 2014

Statistics Canada, May 11, 2016

http://www.statcan.gc.ca/pub/13-604-m/13-604-m2016081-eng.htm

Ontario

The direct contribution of culture industries to GDP was $27.7 billion in Ontario in 2014, which represents 4.1% of provincial GDP. The value added of culture industries in Ontario, as a proportion of total provincial GDP, is well above the national average (3.3%).

In 2014, there were 301,900 jobs directly related to culture industries in Ontario, or 4.3% of the province’s 7.0 million jobs. This percentage is also above the national average (3.9%).

In Ontario, the GDP of culture industries is larger than the value added of agriculture, forestry, fishing, and hunting ($5.9 billion), accommodation and food services ($13.1 billion), utilities ($15.1 billion), and transportation and warehousing ($25.9 billion). However, the value added of culture is less than that of educational services ($38.9 billion) and construction ($43.3 billion).

The PTCI also provides an estimate of the GDP of sports industries in 2014 ($2.7 billion, or 0.4% of the province’s GDP). The value added of culture ($27.7 billion) is ten times larger than the sports estimate.

Between 2010 and 2014, the GDP of culture industries grew by 16%, similar to the 15% increase in the overall provincial economy. This resulted in no change in the culture industries’ share of the overall economy (4.1% in both 2010 and 2014).

Quebec

The direct contribution of culture industries to GDP was $14.5 billion in Quebec in 2014, or 4.3% of provincial GDP. The value added of culture industries in Quebec, as a proportion of the province’s overall GDP, is the highest among the provinces and well above the Canadian average (3.3%).

In 2014, there were 175,900 jobs directly related to culture industries in Quebec, or 4.4% of the 4.0 million jobs in Quebec. This percentage is the highest among the provinces, well above the Canadian average (3.9%).

In Quebec, the GDP of culture industries is larger than the value added of agriculture, forestry, fishing, and hunting ($5.4 billion), accommodation and food services ($7.5 billion), utilities ($13.5 billion), and transportation and warehousing ($13.6 billion). However, the value added of culture is less than that of educational services ($20.1 billion) and construction ($22.6 billion).

The PTCI also provides an estimate of the GDP of sports industries in 2014 ($928 million, or 0.3% of the province’s GDP). The value added of culture ($14.5 billion) is 16 times larger than the sports estimate.

Between 2010 and 2014, the GDP of culture industries grew by 16%, compared with a 12% increase in the overall provincial economy. This resulted in an increase in the culture industries’ share of the overall economy from 4.1% in 2010 to 4.3% in 2014.
 

Atlantic Provinces estimates from Provincial and Territorial Culture Indicators, 2010 to 2014

Statistics Canada, May 11, 2016

http://www.statcan.gc.ca/pub/13-604-m/13-604-m2016081-eng.htm

New Brunswick

The direct contribution of culture industries to GDP was $643 million in New Brunswick in 2014, which represents 2.2% of provincial GDP. The value added of culture industries in New Brunswick, as a proportion of total provincial GDP, is well below the national average (3.3%).

In 2014, there were 9,600 jobs directly related to culture industries in New Brunswick, or 2.7% of the 359,000 jobs in the province. This percentage is also below the national average (3.9%).

In New Brunswick, the GDP of culture industries is larger than that of accommodation and food services ($610 million). The value added of culture is less than that of agriculture, forestry, fishing, and hunting ($853 million), utilities ($1.1 billion), transportation and warehousing ($1.4 billion), construction ($1.6 billion), and educational services ($1.6 billion).

The PTCI also provides an estimate of the GDP of sports industries in 2014 ($98 million, or 0.3% of the province’s GDP). The value added of culture ($643 million) is about seven times larger than the sports estimate.

Between 2010 and 2014, the GDP of culture industries grew by 5%, similar to the 6% increase in the overall provincial economy. This resulted in no change in the culture industries’ share of the overall economy (2.2% in both 2010 and 2014).

Nova Scotia

The direct contribution of culture industries to GDP was $1.2 billion in Nova Scotia in 2014, or 3.3% of provincial GDP. The value added of culture industries in Nova Scotia, as a proportion of the province’s overall GDP, is equal to the national average (also 3.3%).

In 2014, there were 15,900 jobs directly related to culture industries in Nova Scotia, or 3.5% of the province’s 460,000 jobs. This percentage is below the national average (3.9%).

In Nova Scotia, the GDP of culture industries is larger than the value added of utilities ($778 million), accommodation and food services ($871 million), and agriculture, forestry, fishing, and hunting ($1.0 million), as well as being equal to that of transportation and warehousing ($1.2 billion). However, the value added of culture is less than that of construction ($1.9 billion) and educational services ($2.3 billion).

The PTCI also provides an estimate of the GDP of sports industries in 2014 ($113 million, or 0.3% of the province’s GDP). The value added of culture ($1.2 billion) is ten times larger than the sports estimate.

Between 2010 and 2014, the GDP of culture industries increased by 7%. During the same timeframe, the overall provincial economy grew by 6%, resulting in a slight increase in the culture industries’ share of the overall economy from 3.2% in 2010 to 3.3% in 2014.

Prince Edward Island

The direct contribution of culture industries to GDP was $200 million on Prince Edward Island in 2014 (3.7% of provincial GDP). The value added of culture industries on PEI, as a proportion of total provincial GDP, is above the national average (3.3%).

In 2014, there were 2,500 jobs directly related to culture industries on PEI, or 3.3% of the 74,000 jobs in the province. This percentage is below the national average (3.9%).

On PEI, the GDP of culture industries is larger than the value added of utilities ($92 million), accommodation and food services ($153 million), and transportation and warehousing ($156 million). On the other hand, the value added of culture is less than that of construction ($305 million), agriculture, forestry, fishing, and hunting ($356 million), and educational services ($384 million).

The PTCI also provides an estimate of the GDP of sports industries in 2014 ($27 million, or 0.5% of the province’s GDP). The value added of culture ($200 million) is seven times larger than the sports estimate.

Between 2010 and 2014, the GDP of culture industries grew by 5%, compared with a 15% increase in the overall provincial economy. This resulted in an decrease in the culture industries’ share of the overall economy from 4.0% in 2010 to 3.7% in 2014.

Newfoundland and Labrador

The direct contribution of culture industries to GDP was $497 million in Newfoundland and Labrador in 2014, or 1.6% of provincial GDP. The value added of culture industries in Newfoundland and Labrador, as a proportion of the province’s overall GDP, is well below the national average (3.3%).

In 2014, there were 5,700 jobs directly related to culture industries in Newfoundland and Labrador, or 2.5% of the province’s 234,000 jobs. This percentage is also below the national average (3.9%).

Between 2010 and 2014, the GDP of culture industries grew by 15%, equal to the increase in the overall provincial economy. This resulted in no change in the culture industries’ share of the overall economy (2.2% in both 2010 and 2014).

In Newfoundland and Labrador, the GDP of culture industries is larger than the value added of agriculture, forestry, fishing, and hunting ($464 million). On the other hand, the value added of culture is less than that of accommodation and food services ($505 million), utilities ($561 million), transportation and warehousing ($793 million), educational services ($1.5 billion), and construction ($3.4 billion).

The PTCI also provides an estimate of the GDP of sports industries in 2014 ($63 million, or 0.2% of the province’s GDP). The value added of culture ($497 million) is eight times larger than the sports estimate.

Between 2010 and 2014, the GDP of culture industries grew by 15%, equal to the increase in the overall provincial economy. This resulted in no change in the culture industries’ share of the overall economy (1.6% in both 2010 and 2014).
 

Territorial estimates from Provincial and Territorial Culture Indicators, 2010 to 2014

Statistics Canada, May 11, 2016

http://www.statcan.gc.ca/pub/13-604-m/13-604-m2016081-eng.htm

Yukon

The direct contribution of culture industries to GDP was $61 million in the Yukon in 2014, which represents 2.4% of territorial GDP. The value added of culture industries in the Yukon, as a proportion of the territory’s overall GDP, is well below the national average (3.3%).

In 2014, there were 890 jobs directly related to culture industries in the Yukon, or 3.5% of the 25,300 jobs in the territory. This percentage is also below the national average (3.9%).

In the Yukon, the GDP of culture industries is larger than the value added of utilities ($47 million) but less than the value added of accommodation and food services ($74 million), transportation and warehousing ($76 million), educational services ($129 million), and construction ($219 million).

The PTCI also provides an estimate of the GDP of sports industries in 2014 ($7 million, or 0.3% of the territory’s GDP). The value added of culture ($61 million) is nine times larger than the sports estimate.

Between 2010 and 2014, the GDP of culture industries grew by 7%, compared with a 13% increase in the overall territorial economy. This resulted in a slight decrease in the culture industries’ share of the overall economy from 2.5% in 2010 to 2.4% in 2014.

Northwest Territories

The direct contribution of culture industries to GDP was $73 million in the Northwest Territories in 2014 (1.6% of territorial GDP). The value added of culture industries in the Northwest Territories, as a proportion of the territory’s overall GDP, is well below the national average (3.3%).

In 2014, there were 830 jobs directly related to culture industries in the Northwest Territories, or 2.7% of the territory’s 30,400 jobs. This percentage is also below the national average (3.9%).

In the Northwest Territories, the GDP of culture industries is similar to the value added of utilities ($75 million) but less than the value added of accommodation and food services ($86 million), educational services ($189 million), transportation and warehousing ($316 million), and construction ($614 million).

The PTCI also provides an estimate of the GDP of sports industries in 2014 ($8 million, or 0.2% of the territory’s GDP). The value added of culture ($73 million) is about nine times larger than the sports estimate.

Between 2010 and 2014, the GDP of culture industries increased by 5%. During the same timeframe, the overall territorial economy decreased by 2%, resulting in a slight increase in the culture industries’ share of the overall economy from 1.5% in 2010 to 1.6% in 2014.

Nunavut

The direct contribution of culture industries to GDP was $61 million in Nunavut in 2014, or 2.5% of territorial GDP. The value added of culture industries in Nunavut, as a proportion of the territory’s overall GDP, is below the national average (3.3%) but is the highest level among the three territories.

In 2014, there were 470 jobs directly related to culture industries in Nunavut, or 3.2% of the 14,900 jobs in the territory. This percentage is below the national average (3.9%).

In Nunavut, the GDP of culture industries is larger than the value added of accommodation and food services ($25 million) and transportation and warehousing ($52 million). On the other hand, the value added of culture is less than that of utilities ($72 million), educational services ($193 million), and construction ($382 million).

The PTCI also provides an estimate of the GDP of sports industries in 2014 ($7 million, or 0.3% of the territory’s GDP). The value added of culture ($61 million) is nine times larger than the sports estimate.

Between 2010 and 2014, the GDP of culture industries grew by 20%, compared with a 30% increase in the overall territorial economy. This resulted in a decrease in the culture industries’ share of the overall economy from 2.7% in 2010 to 2.5% in 2014.