Table of contents
- Welcome Deputy
- Getting started: the fundamentals
- Overview of current ISED and Portfolio activities
- ISED Departmental Plan 2024-2025
- ISED's Legislative Frameworks
- ISED's Key Priorities for 2024-25
- Supporting Canadian Sectors and Innovation
- Digital Infrastructure and Telecommunications
- Helping Small Businesses and Entrepreneurs
- Marketplace Frameworks and Consumer Confidence
- Science and Research
- Regional Development
- Rural Economic Development
- Overview of sector heads and mandate
- Canadian economic snapshot
Welcome Deputy
Dear Deputy Jennings,
Congratulations on your appointment, and welcome to ISED!
ISED's overall mission is to foster a growing, competitive and knowledge-based Canadian economy. To achieve this mission, ISED's broad mandate includes laying the foundations of economic growth and providing transformational support to firms of all sizes. Through these efforts, ISED and the Portfolio work to foster a culture of collaboration and innovation that builds strong partnerships between businesses, academics and government organizations at all levels.
As Deputy Minister, you will work with the Deputy Minister (Economic Development) and Associate Deputy Minister to support the Ministers in the advancement of their respective mandates. The following package is designed to provide you with an overview of ISED and the Portfolio's diverse work, including Sector and Portfolio mandates and activities, and senior leadership profiles.
Sincerely,
The ISED Team
Getting started: the fundamentals
Mandate of ISED and the Portfolio
Raison d'être
Innovation, Science and Economic Development Canada (ISED) and the Portfolio work with Canadians in all areas of the economy and in all parts of the country to improve conditions for investment, enhance Canada's innovation performance, increase Canada's share of global trade, and build a fair, efficient, and competitive marketplace.
Mandate
ISED is responsible for the Government's micro-economic policy agenda, aiming to foster a growing, competitive, and knowledge-based Canadian economy. It helps create the conditions for Canadian businesses to grow, innovate, and expand so they can create jobs and wealth for Canadians. It supports scientific research and the integration of scientific considerations into investment and policy choices; and, helps small businesses grow through trade and innovation and promotes increased tourism in Canada.
Leadership
ISED is the federal institution that forms the core of the Innovation, Science and Economic Development Portfolio.
Framework
ISED works with its portfolio partners to deliver its mandate through its Departmental Results Framework and its three core responsibilities:
- People, Skills and Communities
- Science, Technology, Research and Commercialization
- Companies, Investment and Growth
Structure of the ISED Portfolio
The Portfolio entities
Minister of Innovation, Science and Industry
Minister of Small Business
Minister of Tourism
Min of International Trade and Export Promotion
Minister of Rural Economic Development
Department, agencies
Ministers are accountable to the Prime Minister and Parliament for all organizations in their portfolio, including policy, program, and management issues.
Department
- Innovation, Science and Economic Development (supporting all ISED Ministers)
Agencies
- Statistics Canada
- Canadian Space Agency
- Health Emergency Readiness Canada special operating agency
Councils
Specialized; Deputy Head reports to Minister
- Natural Sciences and Engineering Research Council of Canada
- National Research Council Canada
- Social Sciences and Humanities Research Council of Canada
Crown Corporations
Independent; Chairperson of Board reports to Minister
- Destination Canada
- Standards Council of Canada
- Business Development Bank of Canada
- Canada Innovation Corporation
Quasi-judicial tribunals
Make decisions and hear appeals at arm's length from the government following quasi-judicial processes.
- Competition Tribunal
- Copyright Board Canada
Entities outside the Portfolio
Regional development agencies (under separate ministers)
- Atlantic Canada Opportunities Agency
- Canada Economic Development for Quebec Regions
- Federal Economic Development Agency for Northern Ontario
- Federal Economic Development Agency for Southern Ontario
- Prairies Economic Development Canada
- Pacific Economic Development Canada
- Canadian Northern Economic Development Agency
Associated organizations
Government selects board member(s); in whole or part funded by ISED agreement.
- Canada Foundation for Innovation
- Council of Canadian Academies
- Genome Canada Minister does not appoint board members
Administrative tribunal (other portfolio)
- Canadian Radio-television and Telecommunications Commission
ISED and Portfolio Ministers
ISED and the Portfolio support five ministers, who are responsible for broad economic mandates, including economic growth, innovation, and competition across Canada, for all Canadians and Canadian firms.
Minister of Innovation, Science and Industry
The Honourable François-Philippe Champagne
Minister of Small Business
The Honourable Rechie Valdez
Minister of Rural Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency
The Honourable Gudie Hutchings
Minister of Tourism/ Minister responsible for the Economic Development Agency of Canada (Region of Quebec)
The Honourable Soraya Martinez Ferrada
Minister of Export Promotion, International Trade and Economic Development
The Honourable Mary Ng
ISED Deputy Ministers
Philip Jennings
Deputy Minister, Innovation, Science and Economic Development Canada
Philip Jennings was appointed Deputy Minister of Innovation, Science and Economic Development in November 2024. Previously, Philip served as Executive Director, Canada, Ireland, and the Caribbean at the International Monetary Fund, having held previously various senior leadership roles within the federal public service, including as Senior Advisor to the Privy Council Office, Deputy Secretary to the Cabinet (Plans and Consultations) at the Privy Council Office Associate Deputy Minister of Natural Resources, and numerous senior leadership roles at Innovation, Science and Economic Development Canada, Industry Canada, Atomic Energy of Canada Ltd., and Natural Resources Canada.
Sony Perron
Deputy Minister, Economic Development, Innovation Science and Economic Development Canada
Sony Perron was appointed Deputy Minister of Economic Development in May 2024. Sony is concurrently Deputy Minister/President of Canada Economic Development for Quebec Regions (CED). He previously served as President of Shared Services Canada (SSC), Associate Deputy Minister of Indigenous Services Canada, and held a variety of prior senior leadership roles at Health Canada, Indigenous Services Canada, Treasury Board Secretariat, and Employment and Social Development Canada.
Francis Bilodeau
Associate Deputy Minister, Innovation, Science and Economic Development Canada
Francis Bilodeau was appointed Associate Deputy Minister of Innovation, Science and Economic Development in January 2022. Previously, Francis was the Senior Assistant Deputy Minister, Strategy and Innovation Policy Sector, at Innovation, Science and Economic Development Canada. Mr. Bilodeau held a variety of senior leadership roles, including as the Chief Information Officer of the Government of Canada and assistant deputy minister roles at the Treasury Board of Canada Secretariat and the Privy Council Office.
ISED Financial Snapshot
ISED Budget 2024-25
Text description
Pie chart representing the distribution of ISED's budget for 2024-25.
| Operating |
$618.1 M ($467.8 M Salary, and $150.3 M Non-Salary) Salary expenses account for 76% of ISED's Operating Vote. As per 2024-25 Departmental Plan, ISED's workforce represents 6,295 FTEs, of which 4,385 FTEs are covered by the voted salary budget, the remaining 1,910 FTEs from the respendable revenues |
| Capital | $76.4 M |
| Grants & Contributions (incl. Statutory) | $5,349.9 M |
| Respendable Revenues | $374.4 M |
| Statutory Forecast Operating | $90.6 M |
Operating Vote – for expenses incurred in the course of delivering program outputs, such as personnel costs, office supplies, repair and maintenance, consulting fees, operating leases, etc.
Capital Vote – for the acquisition or development of capital assets (when capital expenditures exceed $5M).
Grants and Contributions Vote – for transfers of money (as a grant or a contribution) to an individual, an organization, or another government.
Respendable Revenue – inflow of cash or receivables from the sale of goods or the rendering of services.
Statutory Forecast Operating / Employee Benefit Plan – e.g. superannuation, CPP, and severance pay, that are not incurred directly by ISED.
The ISED and Portfolio story
- 1892
- Department of Trade and Commerce primarily focused on the creation and expansion of national and regional transportation systems, export of natural resources, and growing the processing capacity of the manufacturing sector. The Department's focus shifted to mobilizing Canada's industrial capacity for war in 1939.
- 1963
- Department of Industry shifted the primary focus to industry and innovation. The Department's 10 sector-focused branches aimed to increase Canadian productivity and large-scale production. Regional economic development was also first recognized as a key component of industry policy in this era via the creation of the Area Development Agency.
- 1969
- Department of Industry, Trade and Commerce brought together trade and industrial policy. The Department's primary focus was to promote the establishment and growth of the manufacturing, processing, and tourism industries, improve the productivity of Canadian industry, and foster the expansion of Canadian trade.
- 1982
- Department of Regional and Industrial Expansion merged industry policy and regional economic development. Trade functions were removed, and the Department's programming efforts focused on supporting large-scale industrial development.
- 1987
- Department of Industry, Science and Technology Canada was created in response to the growing prominence of science and technology as a key component of economic policy. Some shifts in the era included a more prominent role in encouraging technology transfer and basic and applied R&D, and ensuring the availability of a highly skilled labour force.
- 1993
- Industry Canada resulted from a merger of four existing departments (Industry, Science and Technology Canada; Consumer and Corporate Affairs; Department of Communications; and Investment Canada), due to unfavourable economic and financial climate in the early to mid-1990s. The role of the Department shifted toward micro-economic policy, with a raison d'être to promote productivity and innovation and create the conditions for a more competitive business climate.
- 2015
- Innovation, Science and Economic Development Canada reinforced the centrality of innovation to industrial policy and economic development across all sectors and regions of the country. The ISED Portfolio shifted toward a more active and direct partner with businesses, innovators, entrepreneurs, academia and civil society.
Overview of current ISED and Portfolio activities
Supporting Canadian Sectors and Innovation
Digital Infrastructure and Telecommunications
Helping Small Businesses and Entrepreneurs
Marketplace Frameworks and Consumer Confidence
Science and Research
Rural and Regional development
ISED Departmental Plan 2024-2025
| Responsibility | Companies, investment and growth | Science, research, technology and commercialization | People, skills and communities |
|---|---|---|---|
|
Departmental results |
Canadian businesses and industries are innovative and growing. Businesses, investors, and consumers are confident in the Canadian marketplace, including in the digital economy. Canada has a clean and sustainable economy. |
Canadian science, technology and innovation (ST&I) research contributes to knowledge transfer. |
People and communities from all segments of Canadian society participate in the economy. |
|
Policies and programs |
Innovation Canada Global Innovation Clusters Pan-Canadian Artificial Intelligence Strategy (PCAIS) Canada's National Quantum Strategy Strategic Innovation Fund (SIF) |
Strategic Science Fund (SSF) Pan-Canadian Artificial Intelligence Strategy (PCAIS) Digital Research Infrastructure (DRI) Strategy Canadian Network for the Advancement of Research, Industry and Education (CANARIE) National Quantum Strategy (NQS) Secretariat Quantum Industry Canada Pan-Canadian Genomics Strategy, in partnership with National Research Council (NRC) Horizon Europe Cyber Security Innovation Network (CSIN) |
Canada's Connectivity Strategy Universal Broadband Fund (UBF) Connecting Families Initiative (CFI) Digital Literacy Exchange Program Women Entrepreneurship Strategy Black Entrepreneurship Program 2SLGBTQI+ Entrepreneurship Program Venture Capital Catalyst Initiative Small Business and Entrepreneurship Development Program General Fund |
ISED's Legislative Frameworks
ISED's enabling legislation is the Department of Industry Act, which outlines the powers, duties, and functions of the Minister, with the department responsible for administering a variety of associated acts and regulations, and for implementing government-wide regulatory initiatives. ISED has undertaken significant legislative reforms to Competition, Privacy, Cyber and national-security legislation, including, for example, C-26, An Act Respecting Cyber Security and Implementation, C-27, Digital Charter Implementation Act.
Marketplace and Trade Legislation
Agreement on Internal Trade Implementation Act
Bankruptcy and Insolvency Act
Boards of Trade Act
Canada Business Corporations
Canada Cooperatives
Canada Corporations Act
Canada Not-for-profit Corporations Act
Canada Small Business Financing Act
Companies' Creditors Arrangement Act
Competition Act
Government Corporations Operation Act
Investment Canada Act
Winding-up and Restructuring Act
Intellectual Property Legislation
Copyright Act
Industrial Design Act
Integrated Circuit Topography Act
Olympic and Paralympic Marks Act
Patent Act
Public Servants Inventions Act
Trade-marks Act
Telecommunications Legislation
Radiocommunication Act
Telecommunications Act
Consumer Legislation
Bills of Exchange Act
Consumer Packaging and Labelling Act
Electricity and Gas Inspection Act
Personal Information Protection and Electronic Documents Act
Precious Metals Marking Act
Textile Labelling Act
Weights and Measures Act
ISED's Key Priorities for 2024-25
Support trust and confidence in Canada's marketplace by ensuring framework laws are modern, foster innovation, and ensure effective consumer protection and modernize and update the Competition Act to promote and strengthen competitive markets.
Develop a sustainable battery innovation and industrial ecosystem, establishing Canada as a leader in battery manufacturing, recycling and reuse.
Advance the Biomanufacturing and Life Sciences Strategy through strategic investments to strengthen Canada's domestic biomanufacturing capacity.
Advance broadband delivery by connecting more households, including those in rural and remote regions across Canada, to achieve Canada's target of connecting 98% of Canadians to high-speed internet by 2026 and all Canadians by 2030.
Help Canadians improve digital literacy skills, and support Canadian businesses in adopting digital technologies, to ensure all Canadians can thrive in the digital economy.
Modernize the support system for Canada's science and research ecosystem through research grants, implementing an advisory Council to guide scientific priorities, and create a new capstone research funding organization.
Make Canada's entrepreneurial ecosystem more accessible by providing opportunities and support for individuals from under-represented groups to start, scale, grow and maintain their businesses.
Capitalize on Canada's first mover Artificial Intelligence (AI) advantage through investments in technology infrastructure and funds to commercialization and accelerate AI adoption in the Canadian economy.
Supporting Canadian Sectors and Innovation
Key sectors of the Canadian economy
- Aerospace
- Automotive
- Clean tech
- Critical minerals and energy
- Digital technology
- Food processing
- Life sciences and biomanufacturing
- Manufacturing
- Steel and aluminum
- Tourism
Through its micro-economic policy and regulatory agenda, ISED supports Canada's industrial sectors by:
- Leading federal initiatives across key industrial sectors to improve conditions for investment, enhance innovation performance, increase Canada's share of global trade, and build a fair, efficient, competitive marketplace.
- Bringing together expertise and knowledge, alongside critical programs and services, to meet Government priorities and support businesses in achieving their full potential.
- Working directly with businesses to gain insights, address challenges, and develop solutions that drive economic growth by leveraging key opportunities and building on Canada's strengths.
ISED is works to create the conditions for business investment in the Canadian economy, including via the administration of the Investment Canada Act, and works with other departments on investment attraction to encourage foreign firms to invest in Canada to bring new jobs, adopt advanced technologies, and boost our economy.
The Portfolio delivers a broad suite of industry-focused programs to support business needs—from helping businesses access skilled talent to grow and innovate, through building innovation ecosystems, to exporting and scaling up globally. For example, the National Research Council Canada labs through the Industrial Research Assistance Program works with businesses on research and commercialization needs, and the Canadian Space Agency supports the growth of the space industry and encourages the transfer and commercialization of space technology throughout Canadian industry.
Innovation and R&D
Supporting the Canadian economy through strategic actions and investments to build Canada's innovation advantage in growing technology and promote digital adoption across all industries.
Sustainability and emissions reduction
Supporting the decarbonization of Canadian industries and the economy to accelerate the transition to sustainability and net-zero through expertise in clean technology capabilities and research to support new policies and programs enabling clean technologies.
Emergency readiness
Supporting domestic capabilities for the development and production of medical countermeasures to address Canada's health security needs.
Supply chain resiliency and trade
Supporting efforts to shape a more resilient and inclusive economy reinvesting in domestic manufacturing expertise and capacity, stabilizing global supply chains, and expanding trade relationships.
Skills and talent
Delivering skills programming focused on driving innovation and helping ensure that Canada's workforce meets industry needs by inspiring youth toward future careers and supporting
work-integrated learning and training in high-growth sectors.
Program supports for Canadian innovation
ISED supports industry sectors by providing a one-stop shop for financing and expert advice and by driving new collaborations to help businesses innovate, create jobs, and grow Canada's economy.
Strategic Innovation Fund invests in innovative businesses, collaborative projects to support scale-up and research, develop, commercialize cutting-edge ideas, and collaborate in new ways (e.g. Net-Zero Accelerator supports clean technology development, adoption).
Five Global Innovation Clusters (Digital Technology, Protein Industries, Advanced Manufacturing, Scale AI, and Ocean), bring together entrepreneurs, researchers, accelerators, small and medium-size enterprises, global firms to consolidate Canada's technology strengths in areas of global advantage.
Innovative Solutions Canada is helping Canadian innovators who want to start, grow, and get to market by funding R&D and testing prototypes in real-life settings.
Canada Digital Adoption Program helps SMEs with access to programs and services to digitize their businesses toward resilience and growth.
Accelerated Growth Service, BizPaL, and Business Benefits Finder aim to help Canadian businesses grow from start-up to scale-up to global brand.
ExploreIP, Canada's IP Marketplace, and associated online tools help Canadian businesses access valuable publicly owned IP to licence, collaborate, and commercialize.
Digital Infrastructure and Telecommunications
Canadian businesses rely on digital infrastructure to connect to a larger market and grow globally. Canadians, particularly in remote areas, rely on digital infrastructure, such as broadband Internet access and wireless service provided through spectrum, to connect to vital services, educational resources, and economic opportunities.
ISED and Portfolio partners have a role to play in enabling digital infrastructure, alongside other government departments, by:
- Administering funding programs that work to improve the availability of telecommunications services in unserved and underserved areas, including rural and Northern communities (e.g. Universal Broadband Fund).
- Seeking to remain proactive and forward-looking on evolving digital infrastructure needs, including looking at the implications of next-generation networks, such as 5G; and,
- Advancing the security and resilience of digital infrastructure, working with partners across the Government of Canada.
ISED is responsible for the Telecommunications Act and leads telecommunications policy for the government to promote sector competition, investment, affordability, and access to high-quality services.
ISED is responsible under the Radiocommunication Act to govern the use of spectrum in Canada, a public resource that is essential for the country's wide range of wireless services. This includes authorizing its use, setting standards, certifying equipment, and holding auctions.
The Canadian Radio-television and Telecommunications Commission (CRTC) is an independent tribunal that regulates telecommunications and broadcasting in the public interest. The CRTC currently reports to Parliament via the Minister of Canadian Heritage and works to implement the policy objectives in the Telecommunications Act and Canada's Anti-Spam Legislation (currently the responsibility of the Minister of Innovation, Science and Industry) and the Broadcasting Act (currently the responsibility of the Minister of Heritage).
This includes implementing measures to encourage greater competition in telecommunications services, enable digital infrastructure, and promote compliance with and enforcement of regulations that advance consumer interests.
Helping Small Businesses and Entrepreneurs
Small businesses make up nearly 98% of businesses in Canada and are important to Canada's economy, employing 68% of workers. While Canada generally excels at creating new businesses, maximizing export potential and creating high-growth and large anchor firms remains a challenge.
A current function of the Portfolio is to support small businesses through access to financing. This includes direct funding through grants and loans, as well as support in raising capital. Many of the Portfolio financing programs include mentorship and capacity building, offering knowledge sharing, resources, and expert advice direct to entrepreneurs and small-business owners.
The Portfolio works to encourage market diversification and global market access by promoting key trade and investment agreements, advancing negotiations on new agreements, and helping entrepreneurs expand globally.
The Portfolio also supports the small-business ecosystem more broadly through its role in supporting effective regulation and access to talent pipelines, and through direct business-facing services, such as the Canada Business App, to help small businesses better access government services and programs.
A suite of entrepreneurship programs serve to support a wide range of entrepreneurs to start a business, and small and medium-sized enterprises to grow in Canada and globally, including underrepresented groups via, for example, the Women Entrepreneurship Strategy, Black Entrepreneurship Program, Futurpreneur program.
Other programs include the Canada Digital Adoption Program, which helps SMEs get online and use technology to build their business, and the Canada Small Business Financing Program, which enhances access to capital by working with Canadian financial institutions to risk share small business loans.
ISED further complements these SME supports through its business innovation programming:
- The Strategic Innovation Fund supports innovation networks that facilitate collaborative innovation projects, often involving smaller companies;
- 47% of Cluster project partners are SMEs, linking innovative SMEs with larger firms and research institutes to leverage the industry network;
- Innovative Solutions Canada leverages procurement to enable the Government to act as a first customer and support innovative Canadian SMEs;
- The Innovation Advisors within the Accelerated Growth Service help high-growth SMEs find government support—from financing to technical advice to foreign market expertise.
Marketplace Frameworks and Consumer Confidence
ISED and the Portfolio are responsible for laws, regulations, and policies in key areas that establish a framework for business activity in Canada, including to:
- Support innovation through investment attraction, competition, research, and commercialization;
- Build trust by taking into account diverse public policy interests, such as privacy, consumer protection, and fairness; and,
- Encourage Canadian firms to leverage marketplace tools, services, and programs.
ISED and the Portfolio work to ensure Canada's marketplace frameworks are effective in promoting competitive markets and instilling confidence and trust through a variety of functions, including the development and coordination of policy and legislative frameworks of general application within the marketplace:
- Corporate governance, bankruptcy and insolvency;
- Competition;
- Labelling (textiles, packaged goods, and precious metals);
- Copyright, trademark, patent, and industrial design;
- Privacy, personal information, and data governance;
- Artificial intelligence; and,
- Anti-spam and e-commerce protection.
Marketplace frameworks: law and policy
A wide range of reforms have been implemented to enhance competition and protect consumers in the marketplace. These include generational reforms to the Competition Act, which bolster the Competition Bureau's capacity to safeguard marketplace competition through enhanced merger control, regulations against deceptive marketing, and anti-competitive agreements, as well as the introduction of the Grocery Code of Conduct to improve transparency in food pricing. Further changes are being implemented to promote competition, stabilize prices, and ensure a fair marketplace for Canadians across multiple sectors.
The Portfolio has a role in protecting Canadians and empowering consumers through: federal policy, legal, and regulatory levers; research, education, and awareness efforts; enforcement actions; and, coordination with the provinces and territories. ISED regularly assesses and advises on marketplace policies and laws to ensure that they remain fit for purpose and are effective, and leads the development of legislative, policy, and some regulatory proposals.
ISED also participates in international fora and negotiations of importance to the Portfolio, including issues related to governance of a data-driven economy. This includes advancing Canada's leadership with the Global Partnership on AI and developing a new framework to regulate AI systems in alignment with Canada's National AI Strategy.
To remain proactive, the Portfolio monitors domestic and international developments to leverage best practices and maintain interoperability where necessary.
Marketplace frameworks: policy/regulatory entities
Canadian Intellectual Property Office, a special operating agency, administers Canada's system of intellectual property rights such as patents, trademarks, copyrights, industrial designs, and geographical indications.
Competition Bureau, an independent federal law enforcement agency with competition law and consumer welfare responsibilities, works to enable trust and innovation in markets, including combatting cartels, deceptive marketing, reviewing mergers, preventing abuse by dominant firms.
Office of the Superintendent of Bankruptcy ensures the proper functioning of the insolvency system in support of creditor and investor confidence in the Canadian economy, helping to protect consumers through compliance promotion, monitoring/enforcement, tools and information to help debtors find the right solution for their serious financial challenges.
Corporations Canada helps Canadians incorporate businesses, not-for-profit corporations, and other corporate entities according to Canada's laws and regulations and provides a regulatory climate that maintains order and fairness in the corporate law arena.
Copyright Board of Canada establishes the royalties to be paid for the use of some copyrighted works when entrusted to a copyright collective society, setting royalties which are fair and equitable to both copyright owners and users of copyrighted works.
National Research Council Canada is Canada's international metrology and measurement authority, and collaborates with provinces and territories to develop the model Canadian Building Code.
Measurement Canada maintains domestic and worldwide confidence in the accuracy of goods and services bought and sold on the basis of measurement to advance economic growth and a fair and competitive marketplace.
Office of Consumer Affairs acts as a focal point for consumers seeking access to information to make informed decisions in the marketplace or seek redress, including facilitating collaboration across all levels of government with respect to consumer protection and awareness, and supporting consumer organizations in Canada to advance research and policy analysis on emerging issues.
Standards Council of Canada is a federal Crown corporation responsible for promoting efficient and effective standardization to strengthen Canada's competitiveness while protecting consumers and protecting the health, safety, and welfare of Canadians.
Statistics Canada is Canada's national statistical agency, providing data and analysis on important macroeconomic measures, such as the consumer price index, gross domestic product, trade and other measures on innovation, productivity, and digital, and the Census of Population, which provides important information on demographic trends, insights that inform domestic and international government and business decisions.
Science and Research
Canada has a history of strong scientific performance on the world stage. For example, years of investment in artificial intelligence-related research has led to Canadian leadership in this area. Recent progress on securing Canada's AI advantage has been driven by key initiatives such as the Pan-Canadian Artificial Intelligence Strategy (PCAIS), establishment of an AI Data Commissioner, and the Canadian AI Safety Institute, and the Canadian Institute for Advanced Research (CIFAR) is advancing AI research and its application to areas that can benefit society and drive economic growth.
The Portfolio supports fundamental research by ensuring researchers have the necessary resources to pursue bold questions and train new generations of students while optimizing federal investments in science and research. It guides Canada's science ecosystem by modernizing research practices, managing contribution agreements, implementing research programming, and fostering partnerships between businesses and research institutions. This includes the Strategic Science Fund, which aims to mobilize the expertise and resources of independent science organizations to enhance Canada's excellence in science, technology, and innovation.
Direct funding is currently used to support fundamental science, delivered through various mechanisms, including the two granting agencies under the ISED Portfolio. The Natural Sciences and Engineering Research Council of Canada and the Social Sciences and Humanities Research Council of Canada both provide funding to support students, promote and support discovery research, and encourage greater collaboration between industry and academia. (The Canadian Institutes of Health Research, the third granting council, is under the purview of the Minister of Health.) Efforts are underway to consolidate the granting councils under a new capstone research funding organization, to provide better coordination across the federally funded research ecosystem.
Other funding initiatives within the Portfolio focus on building skills through the promotion of science, technology, engineering, and mathematics; on strengthening Canada's research infrastructure; on enhancing areas of strength; and on supporting business in the development and deployment of research.
The National Research Council is Canada's largest federal R&D organization, which partners with industry to help bring research and new advanced technologies to market, and invests in strategic R&D programming to apply to economic and societal challenges.
The Canadian Genomics Strategy (CGS) is driving further innovation in genomics through Genome Canada to advance commercialization programming.
Established in 2024, Health Emergency Readiness Canada (HERC) is the focal point for domestic and international stakeholders to advance health emergency preparedness by strengthening scientific, industrial and technological capabilities and growing a competitive, innovative and prosperous life sciences and biomanufacturing ecosystem.
Finally, the Portfolio also works with global partners to strengthen best practices and contribute to large-scale discovery projects. The Canadian Space Agency works collaboratively with members of the global space community, including NASA and the European Space Agency. In this role, Canada has contributed to a number of scientific missions, delivering critical technology and scientific expertise.
Regional Development
ISED engages regionally via three principal avenues:
- ISED's five Regional Offices, reporting through the Strategy and Innovation Policy Sector: Pacific, Prairie and Northern, Ontario, Quebec, Atlantic – gather and report regional intelligence, support ministerial and VIP outreach, support implementation of certain key departmental files, enhance the department's understanding of local and regional issues, opportunities and stakeholder networks.
- Federal, Provincial and Territorial (FPT) Table for Innovation and Economic Development: supports sustaining and enhancing FPT collaboration on innovation and economic development. Created in 2016, currently co-chaired by ISED with QC having recently accepted to assume the new co-chair role from Saskatchewan. Primarily an ADM table. Has included a Ministerial and Deputy Ministerial table, but these no longer meet regularly.
- Engagement with Regional Development Agencies (RDAs): ISED engages and collaborates with RDAs on a number of policy files, including, the Economic Development Initiative for Official Languages Minority Communities and the Green Prairie Economy initiative (led by Prairies Economic Development Canada, with multiple OGD partners contributing and implicated). Engagement is both file-driven, and intended to ensure horizontal microeconomic policy coordination.
Rural Economic Development
The Rural Economic Development Strategy, released in June 2019, takes a regional and place-based approach to enhancing economic and social opportunities in rural and remote Canada.
Overseen by ISED's Centre for Rural Economic Development (CenRED), a division of the Strategy and Innovation Policy Sector (SIPS), it outlines a whole-of-government approach to meet the economic, social development and sustainability needs of rural Canada, with contributions from 20+ federal departments and agencies, built on three themes: places, people, and partnerships.
Places
Building Rural Communities
- Expanding broadband and mobile connectivity
- Renewing infrastructure and building climate resilience
- Strengthening local economies and helping firms affected by the pandemic
People
Supporting Rural Canadians
- Helping newcomers to rural communities
- Building affordable housing and investing in public transit
- Helping women return to work and investing in early learning and childcare
Partnerships
Working Together, Better
- Integrating rural perspectives into federal policies and decisions
- Working horizontally to improve access to federal programs and services
- Ensuring that federal investments benefit rural communities
Overview of sector heads and mandate
Departmental sectors
Strategy and Innovation Policy Sector
Alix Dostal
Kasi McMicking
Spectrum and Telecommunications Sector
Ray Edwards
Susan Hart
Audit and Evaluation Branch
Kimberley Accardi
Industry Sector
Charles Vincent
Mary Gregory
Digital Transformation Service Sector
Shaifa Kanji
Legal Services
Alain Vauclair
Small Business, Tourism and Marketplace Services
Étienne-René Massie
Innovation Canada
Andrea Johnston
Stephanie Tanton
Canadian Intellectual Property Office
Konstantinos Georgaras
Science and Research Sector
Nipun Vats
Corporate Management Sector
Douglas McConnachie
Competition Bureau
Matthew Boswell
Health Emergency Readiness Canada
Ritu Banerjee
Strategic Communications and Marketing Sector
Kendal Hembroff
Ombudsman for Mental Health and Employee Well-Being
Abraham Temu
Corporate Secretary
Ana Maia
Chief Equity and Inclusion Officer
Ray Edwards
Strategy and Innovation Policy Sector (SIPS)
SIPS plays a key role in implementing the Government's microeconomic policy agenda and in supporting departmental alignment. It develops and supports the Department's horizontal policy and strategy by ensuring robust marketplace frameworks and by deepening international and regional relations and promoting trade. It also coordinates for the federal budget and is responsible for telecommunications and digital policy. Also within SIPS are the regional offices, which gather intelligence in the regions and act as the Portfolio's public face with regional stakeholders, as well as the Centre for Rural Economic Development, which takes a federal oversight role for rural affairs and federal responses. The sector is responsible for policy and coordination on the trade and international fronts, as well as regulatory coordination. Finally, the sector is responsible for the administration of the Investment Canada Act.
Alix Dostal
Senior Assistant Deputy Minister
Alexandra is the Senior Assistant Deputy Minister, Strategic Innovation Policy Sector, at Innovation, Science and Economic Development Canada. Previously, she has held positions with Government of Canada at Fisheries and Oceans Canada, Treasury Board Secretariat, Finance Canada and Global Affairs Canada. Before joining the Canadian federal public service, she worked with the Government of Ontario and as a lawyer in private practice.
Kasi McKicking
Associate Assistant Deputy Minister
Kasi has served as Associate Assistant Deputy Minister of SIPS since April 2023. In this role she has special responsibility for rural and regional economic development. Prior to assuming this role, Kasi held senior executive positions at ISED's Industry Sector, the Privy Council Office, Treasury Board Secretariat, Health Canada, the Public Health Agency of Canada, and the Atlantic Canada Opportunities Agency. Kasi hails from rural New Brunswick, and earned her BA (Honours) from St. Francis Xavier University in Political Science.
Spectrum and Telecommunications Sector (STS)
STS is responsible for regulating telecommunications equipment, extending and enhancing broadband service in rural and remote regions of Canada, and working with other organizations on the safety and security of existing and future telecommunications infrastructure. The sector's objective is to maximize the economic and social benefits that Canadians derive from the use of the radio frequency spectrum. The sector works across the Department, with other federal government departments, at the international level and with our stakeholders to support a competitive wireless industry, strong investment, cyber-resilience, and economic growth.
Ray Edwards
Acting Senior Assistant Deputy Minister
Ray Edwards is currently the acting Senior Assistant Deputy Minister, Spectrum and Telecommunications Sector and ISED's Chief Equity and Inclusion Officer (CEIO). He was appointed as the Associate Assistant Deputy Minister with STS in 2023 with special responsibility for broadband and digital programming. As CEIO, he provides strategic leadership to drive department-wide inclusion, antiracism, equity, diversity and accessibility initiatives and championing the transformation to break down systemic barriers to the full representation and participation of equity-seeking communities within the workforce and in the Canadian marketplace. His career has encompassed executive leadership roles in policy coordination and program delivery at Health Canada, the Public Health Agency and Agriculture Canada.
Susan Hart
Acting Associate Assistant Deputy Minister
Susan Hart is currently acting Associate Assistant Deputy Minister, Spectrum and Telecommunications Sector, covering radio and spectrum policy and licensing, compliance and enforcement, tower siting, emergency telecommunications response along with enhancements to the spectrum management program. Sue has held several senior-level positions including the new Connecting Canadians Branch, the DG of Audit and Evaluation and DG of the Spectrum Management Operations Branch, and leading the Strategic Review for the Department in 2010 and the Deficit Reduction Action Plan proposals. Sue holds a Master's in Public Policy and Public Administration and a Bachelor of Business Administration, both from Concordia University.
Industry Sector (IS)
IS is the centre for the provision of advice on the Government's industrial policy, based on economic and technological expertise and industry outreach. In this capacity, the sector is responsible for the following industries: automotive, manufacturing, digital technologies, clean technologies, aerospace, space, marine, and defence. The sector also supports the Government's delivery of industry-focused programs, and supports the advancement of a skills agenda aligned with industry needs. IS undertakes investment attraction work in collaboration with other departments and the Invest in Canada Hub, including the Government's industry promotion efforts. The sector is also responsible for the management of the Industrial and Technological Benefits Policy.
Charles Vincent
Senior Assistant Deputy Minister
Charles Vincent was appointed SADM in January 2024 and has been working in the Department since February 2012. He served previously as A/Senior Assistant Deputy Minister of the Industry Sector, Assistant Deputy Minister at the Small Business, Tourism And Marketplace Services (SBTMS), and as Assistant Deputy Minister within Industry Sector from October 2020 to October 2021. Prior to that role, he held other executive positions in the Department, including being responsible for the Made-in-Canada industry mobilization initiative during the COVID-19 pandemic, and being the Director General of the Automotive, Transportation and Digital Technologies Branch. Before joining ISED, Charles served as an executive at the Treasury Board of Canada Secretariat.
Mary Gregory
Associate Assistant Deputy Minister
Mary Gregory has been working in the department since March 2012. Prior to this position, she held various senior leadership roles in the organization, including Director General of the Aerospace, Defence and Marine Branch and Executive Director of the Industrial and Regional Benefits Directorate. Before joining ISED, Mary held executive positions with the Treasury Board of Canada Secretariat and Health Canada.
Innovation Canada Sector (ICS)
ICS is a sector formed in 2017 that serves as a collaborative platform to make it easier and faster for Canada's innovators and entrepreneurs to find and access government programs and services. Through ICS, ISED supports various industry sectors across the Canadian economy by providing funding and expert advice, and driving new collaborations. As part of this role, ICS's flagship programs and services are designed to help businesses innovate, create jobs, and grow Canada's economy. These include: the Global Innovation Clusters; the Strategic Innovation Fund; Innovative Solutions Canada; the Canada Digital Adoption Program; ExploreIP (Canada's intellectual property marketplace); BizPal; Business Benefits Finder; and the Accelerated Growth Service.
Andrea Johnston
Assistant Deputy Minister
Andrea Johnston was appointed Assistant Deputy Minister of ICS in July 2018. She first joined the Department in May 2017 as the Director General of the Economic Strategy Tables and Skills Branch. Prior to joining the Department, Andrea had an extensive career at Agriculture and Agri-Food Canada.
Stephanie Tanton
Assistant Deputy Minister
Stephanie Tanton was appointed ADM responsible for the Strategic Innovation Fund in 2024. Stephanie joined ISED in 2016 and was previously the Director General of the Aerospace, Defence and Marine Branch in the Industry Sector. Previously, she held the positions of Director General and Senior Director of the Industrial and Technological Benefits Branch. Stephanie has over 23 years in the federal public service, during which she also held executive positions at Infrastructure Canada.
Science and Research Sector (SRS)
SRS leads the development and implementation of the Government of Canada's science and technology policy agenda to optimize federal investments in science and research, foster an innovative economy, and improve the wealth and well-being of Canadians. SRS provides advice on external research, relationships with post-secondary institutions, granting agency policy, programs, and operations; and advises on and manages contribution agreements with a variety of external organizations. SRS provides advice on a range of science policy issues, including the broader intramural science enterprise, international science co-operation, and leads the development of strategies to enhance the translation of Canada's research leadership in key disruptive technology areas into commercial and societal benefits for the country (e.g. quantum, AI, genomics).
Nipun Vats
Assistant Deputy Minister
Before his role in SRS, Nipun Vats held a variety of positions within the federal government, including in the Priorities and Planning Secretariat of the Privy Council Office, and in the policy and administration of the major transfer payment programs to the provinces and territories at the Department of Finance. He has also served as Secretary to a National Advisory Panel on Energy Science and Technology. Nipun also served as the lead federal official in the successful negotiation of the Canadian Free Trade Agreement.
Small Business, Tourism and Marketplace Services (SBTMS)
SBTMS is responsible for small business, entrepreneurship, and tourism policy, programs and services. SBTMS undertakes financing and venture capital policy development and coordination, oversight of the Business Development Bank of Canada, and delivery of the Canada Small Business Financing Program. SBTMS supports entrepreneurship ecosystems through tourism industry supports, the Women Entrepreneurship Strategy, the Black Entrepreneurship Program, the Canada Digital Adoption Program, the 2SLGBTQI+ Entrepreneurship Program, and Indigenous economic development policy. SBTMS is active on consumer policy coordination, protecting and promoting the interests of consumers. SBTMS is responsible for tourism policy and oversight of Destination Canada, which is mandated to market Canada overseas as a tourism destination. Measurement Canada, Corporations Canada, and the Office of the Superintendent of Bankruptcy Canada are all part of SBTMS, which all play strong regulatory management roles in the areas of trade measurement, insolvency, and federal incorporation, supporting the integrity of the marketplace and providing a competitive environment that contributes to Canada's innovation performance.
Étienne-René Massie
Assistant Deputy Minister
Étienne-René Massie was appointed Assistant Deputy Minister in 2023 after being Associate Assistant Deputy Minister. He previously held the role of DG in the Small Business Branch, leading the creation of the Black Entrepreneurship Program, the Women Entrepreneurship Program, and the Canada Digital Adoption Program, as well as increased support through the Venture Capital Catalyst Initiative, and youth and Indigenous entrepreneur support. Before joining ISED, Etienne served as Senior Director at Employment and Social Development Canada.
Digital Transformation Service Sector (DTSS)
DTSS drives ISED's digital transformation agenda to create innovative data and digital services for stakeholders. DTSS improves the digital experience for Canadian businesses and citizens in their interactions with government. DTSS develops a strong data foundation to support decision-making, program/policy advice, and artificial intelligence adoption by leveraging digital skills, training, and technology. DTSS is also responsible for modernizing IT operations with a focus on digital technologies platforms, cloud computing, and big data architecture, as well as strengthening the governance and procurement practices of digital projects.
Shaifa Kanji
Assistant Deputy Minister and Chief Digital Officer
Shaifa Kanji assumed her role as Assistant Deputy Minister and Chief Digital Officer in August 2021. She began her career in public service in 2011 and has led digital transformations in municipal government (Region of Peel) and not-for-profit (Toronto and Region Conservation Authority) organizations. Prior to joining the public sector, Shaifa worked in multiple sectors, such as telecommunications, finance, and consulting. Shaifa holds an Executive MBA from the Ivey Business School and a computer science degree from York University.
Corporate Management Sector (CMS)
CMS is responsible for the comptrollership of the Department's finances, the management of human resources, the stewardship of facilities and assets, and the provision of physical and personnel security services. CMS also oversees the Department's corporate planning and accountability reporting regimes and provides strategic advice on performance measurement, risk management, the affordability of program proposals, and the integrity of grants and contributions. In addition, CMS leads the Department's efforts on the Return to the Workplace and the Future of Work.
Douglas McConnachie
Assistant Deputy Minister and Chief Financial Officer
Doug McConnachie joined ISED in October 2019 as Assistant Deputy Minister and Chief Financial Officer, Corporate Management. He has 25 years of experience in public sector management and corporate finance and has served in senior management roles at Environment and Climate Change Canada, Public Safety Canada, and Public Services and Procurement Canada.
Strategic Communications and Marketing Sector (SCMS)
SCMS has a mandate to deliver high-impact communications and marketing initiatives that effectively support Government of Canada priorities across the entire ISED portfolio, in order to reach Canadians and build public trust in government. SCMS reaches national, regional, local, and commercial audiences through a variety of channels, including web and social media, television, radio, and print. The sector actively seeks to break through a competitive environment with proactive, targeted media, marketing, and online strategies. The team of 200+ professionals is responsible for media relations, ministerial communications and events, marketing and advertising, social media, issues management, and corporate communications with ISED employees.
Kendal Hembroff
Assistant Deputy Minister
Kendal Hembroff was appointed as Assistant Deputy Minister, Strategic Communications and Marketing, in May 2023. Prior to this role, she was Director General of the Clean Technologies and Clean Growth Branch at ISED. Prior to joining ISED, Kendal spent 22+ years in various roles at Global Affairs Canada, overseeing the negotiation of Canada's bilateral and regional free trade agreements and multilateral trade negotiations, and was Canada's Chief Negotiator for negotiations with India, ASEAN, Indonesia, Ukraine and the Pacific Alliance. She served abroad as Consul and Senior Trade Commissioner from 2011 to 2014 at Canada's Consulate in Hong Kong, providing support to Canadian companies in the Greater China Region.
Health Emergency Readiness Canada (HERC)
Health Emergency Readiness Canada (HERC) is a new special operating agency within ISED that was announced in September 2024. Formerly ISED's Office of Life Sciences and Biomanufacturing Readiness, HERC is responsible for providing policy analysis and leadership to build domestic capabilities for the development and production of medical countermeasures (MCMs) to address Canada's health security needs. To do this, HERC will rely on an integrated threat and risk assessment function to consider industrial readiness. It aims to be a funding agency once operationalized and will maintain an industrial emergency response game plan. While HERC reports to the Minister of Innovation, Science and Industry, it will also support the Minister of Health, especially in times of crisis.
Ritu Banerjee
Assistant Deputy Minister and Interim Head
Ritu Banerjee, joined ISED in 2023 and is currently the interim Head of the HERC. Prior to that she was the Executive Director of the Results Division, Expenditure Management Sector at the Treasury Board Secretariat. Ritu has also worked at Employment and Social Development Canada on youth policy and has held various executive positions at Public Safety Canada, primarily working on national security policy issues. She started her career in the federal government at the Department of Justice. In addition to a Bachelor of Arts degree from McGill University, she has a Master of Arts in Political Science from the School of Oriental and African Studies, University of London and a Law degree from the University of Ottawa. She has been a member of Ontario Bar since 2000.
Canadian Intellectual Property Office (CIPO)
CIPO, a special operating agency of the Department, is responsible for administering Canada's system of intellectual property (IP) rights: patents, trademarks, copyrights, industrial designs, and geographical indications. CIPO is also an international searching authority and international preliminary examining authority under the Patent Cooperation Treaty administered by the World Intellectual Property Organization. CIPO's mandate is to deliver high quality and timely IP products and services to clients, and to increase awareness, knowledge, and effective use of IP by Canadians. This mandate, along with the directions outlined in CIPO's business strategy, contributes to the strategic outcomes of the organization.
Konstantinos Georgaras
Chief Executive Officer
Konstantinos Georgaras joined CIPO in 2010 and was appointed as Chief Executive Officer in fall 2020. He also represents Canada at the World Intellectual Property Organization, one of the specialized agencies of the United Nations. He began his career in the public service in 1984 and has held strategic and executive positions within the departments of Innovation, Science and Economic Development Canada and Human Resources and Skills Development Canada, and within the Science, Technology and Innovation Council. He has extensive experience spanning strategic, economic, and legislative policy, with direct responsibilities for IP, innovation, insolvency, and industrial and labour market policies. Konstantinos holds a Master of Arts in Public Administration from Carleton University and an Executive Certificate in Public Leadership from the John F. Kennedy School of Government at Harvard University.
Competition Bureau (CB)
CB, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace. The Bureau is responsible for: administering and enforcing the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act, and the Precious Metals Marking Act; advocating for competition at all levels of government; and promoting corporate compliance and consumer awareness through outreach. Competition leads to lower prices, higher quality goods and services, and higher levels of innovation and business efficiency, and is thus a key driver of broad-based economic growth. The Bureau continues to set a course to tackle the emerging challenges of the digital economy, and ensure that competition can underpin a strong post-pandemic recovery.
Matthew Boswell
Commissioner of Competition
Matthew Boswell was appointed Commissioner of Competition on March 5, 2019, for a five-year term. Prior to his appointment, he served as a Senior Deputy Commissioner. Before joining CB, he was Senior Litigation Counsel in the Enforcement Branch at the Ontario Securities Commission (OSC), where he prosecuted securities fraud and other white-collar crimes. Prior to his work at the OSC, Matthew was an Assistant Crown Attorney in Toronto with the Ministry of the Attorney General of Ontario.
Audit and Evaluation Branch (AEB)
AEB provides independent, professional, and quality audit, evaluation, and practice management services founded on sound values and ethics to support informed decision-making and enhanced performance and accountability. It also fulfills the Department's obligations under the Treasury Board of Canada Secretariat's policies, directives, and standards on internal audit and evaluations, as well as conformance with the Institute of Internal Auditors international standards.
Kimberley Accardi
Chief Audit Executive and Director General
Kimberley Accardi was appointed the Chief Audit Executive and Director General, Audit and Evaluation, in September 2022. Prior to this, she was the Deputy Director General of the department's People Operations Branch where she was responsible for large scale operations and policy expertise in classification, compensation and staffing and program areas in learning, talent management and awards. Kimberley was responsible for the design and implementation of a multi-faceted HR-to-Pay stabilization strategy. Prior to joining the department in 2018, Kimberley held positions at Immigration, Refugees and Citizenship Canada and the Canada Border Services Agency.
Legal Services (LS)
ISED's LS is a departmental legal services unit that is a part of the Business and Regulatory Law Portfolio of the Department of Justice. LS strives to deliver timely and effective professional legal services to all sectors of ISED, as well as to other government departments and agencies of the ISED Portfolio, according to the service agreements and standards set by the Department of Justice.
Alain Vauclair
Senior General Counsel and Executive Director
Alain Vauclair has been Senior General Counsel and Executive Director for the Portfolio's Legal Services (Department of Justice) since September 2018. From 2013 to 2018, he was the Senior General Counsel and Executive Director for the Public Services and Procurement Canada and Shared Services Canada LS. He was also responsible for the creation and launch of Department of Justice's Centre of Expertise in Procurement Law in 2017.
Portfolio heads and mandates
| Head | Body | Mandate |
|---|---|---|
| Lisa Campbell, President | Canadian Space Agency | Promote the peaceful use and development of space and ensure that space science and technology advance our knowledge and provide social and economic benefits for Canadians. |
| André Loranger, Interim Chief Statistician | Statistics Canada | Collect, compile, analyze, and publish statistical information on the economic, social, and general activities and conditions of the Canadian people to improve public and private decision-making for the benefit of all Canadians and promote sound statistical standards and practices. |
| Mitch Davies, president | National Research Council Canada | Organize and grow research and innovation in Canada by advancing knowledge, applying leading-edge technologies, and working with other innovators to find creative, relevant, and sustainable solutions to Canada's current and future economic, social, and environmental challenges. |
| Alejandro Adem, president | Natural Sciences and Engineering Research Council of Canada | Promote and support post-secondary research and training in the natural sciences and engineering. |
| Ted Hewitt, president |
Social Sciences and Humanities Research Council of Canada | Promote and support postsecondary-based research and training in the social sciences and humanities. |
| The Honourable Andrew D. Little, Chairperson of the Competition Tribunal | Competition Tribunal | Help the Canadian marketplace be more competitive and innovative. |
| Honourable Luc Martineau, Chair | Copyright Board Canada | Establish the royalties to be paid for the use of copyrighted works. |
| Head | Body | Mandate |
|---|---|---|
| Marsha Walden, President and Chief Executive Officer |
Destination Canada | Market Canada as a leading tourism destination in the international marketplace |
| Chantal Guay, Chief Executive Officer |
Standards Council of Canada | Promote efficient and effective voluntary standardization in Canada |
| Isabelle Hudon, President and Chief Executive Officer |
Business Development Bank of Canada | Support Canadian entrepreneurship through financing, advisory services, and capital, with a focus on small and medium-sized enterprises. |
Office of the Chief Science Advisor
A Chief Science Advisor was appointed to advise on science issues and ways for the government to better support quality scientific research within the federal system.
Dr. Mona Nemer
Canada's Chief Science Advisor
Dr. Mona Nemer was appointed for a three-year term as Canada's Chief Science Advisor in September 2017, and reappointed in 2020, 2022, and 2024. Before taking on this role, Dr. Nemer was Professor and Vice-President of Research at the University of Ottawa and Director of the school's Molecular Genetics and Cardiac Regeneration Laboratory. She holds a PhD in Chemistry from McGill University and did post-doctoral training in molecular biology at the Montreal Clinical Research Institute and Columbia University.
Dr. Nemer is a member of the Order of Canada, a fellow of the Academy of Sciences of the Royal Society of Canada, a knight of the Ordre national du Québec, and a Knight of the French Republic's Ordre national du Mérite. She is also a fellow of the American Association for the Advancement of Science and a member of the American Academy of Arts and Sciences. In 2018, Dr. Nemer was awarded the Arthur Wynne Gold Medal by the Canadian Society for Molecular Biosciences.
Canadian economic snapshot
Economic overview
GDP
Size of the economy: $2.2 trillion (July 2024)
9th largest economy in the world
25% of GDP comes from rural areas
Share of industries in Canada's economy
Text description
Pie chart showing the share of industries in Canada's economy, with the public sector being the largest share (21.2%) and mining, oil and gas the smallest (5.2%).
| Industry | Share of the industry in Canada's economy, in percentage |
|---|---|
| Public sector | 21.2% |
| Real estate, rental and leasing | 13.3% |
| Manufacturing | 9.3% |
| Finance and insurance | 7.2% |
| Professional services | 7.2% |
| Mining, oil and gas | 5.2% |
| Other | 36.6% |
Source: Statistics Canada. Gross domestic product (GDP) at basic prices, by industry, monthly, July 2024
Labour market
Employed people: 20.6M (Sept 2024)
Unemployment rate: 6.5%
Job vacancies: 526,900 jobs (July 2024)
Av. wage: $35.59/hr (Sept 2024)
The unemployment rate has been steadily increasing
Unemployment rate, monthly, percentage
Text description
Graph showing unemployment rate in percentage on a monthly basis from 2008 to 2024. It has steadily decreased from August 2009 (8.8%) to January 2020 (5.5%), but it started increasing again until it reached a high of 14.1% in May 2020. This was followed by a period of steady decrease until a new low of 4.8% in 2022 was reached, and it has ever since been in a steady increase.
| Month | Unemployment rate |
|---|---|
| January 2008 | 6.1 |
| April 2009 | 8.4 |
| October 2011 | 7.5 |
| January 2013 | 7.1 |
| April 2014 | 7.1 |
| July 2015 | 6.9 |
| October 2016 | 6.9 |
| January 2018 | 5.9 |
| April 2019 | 5.7 |
| July 2020 | 11 |
| October 2021 | 6.5 |
| January 2023 | 5 |
| April 2024 | 6.1 |
| September 2024 | 6.5 |
Source: Statistics Canada. Labour force characteristics by sex and age group, monthly, unadjusted for seasonality, September 2024
Firms
Number of firms: 1.2M (Dec 2023)
SMEs represent nearly 50% of Canada's GDP, compared with 43% in the US
SMEs make 99.8% of Canada's firms
Share of firms by number of employees
Text description
Pie chart showing share of firms by number of employees. A significant majority of firms (97.9%) are firms between 1 to 100 employees.
| Number of employees | Percentage |
|---|---|
| 1 to 100 | 97.9% |
| 100 to 499 | 1.9% |
| 500+ | 0.2% |
Source: ISED, Key Small Business Statistics, 2023, and Statistics Canada, GDP, income and expenditure, Q2 2024
Trade
Total exports: $81.2 billion (Aug 2024)
Top export:
- Oil and gas (16.0%)
Top import:
- Transportation equipment manufacturing (16.0%)
Top merchandise import partners ($billions)
Text description
Graph showing Canada's top merchandise import partners in billions of merchandise trade, with the United States being the most significant import partner (40.17 $billions).
| Country | Merchandise import ($billions) |
|---|---|
| United States | 40.17 |
| European Union | 6.19 |
| China | 5.17 |
| Mexico | 2.34 |
| Germany | 1.58 |
Source: Statistics Canada. International merchandise trade for all countries and by Principal Trading Partners, monthly
Top merchandise export partners ($billions)
Text description
Graph showing Canada's top merchandise export partners in billions of merchandise trade, with the United States being the most significant export partner (48.14 $billions).
| Country | Merchandise export ($billions) |
|---|---|
| United States | 48.14 |
| United Kingdom | 3.23 |
| European Union | 2.80 |
| China | 2.79 |
| Japan | 1.13 |
Source: Statistics Canada. International merchandise trade for all countries and by Principal Trading Partners, monthly
The Canadian economy remains resilient
Canada's economy has been generally outperforming expectations
GDP growth, GDP per capita growth, percentage, quarterly, annualized
Text description
Graph showing GDP growth and GDP per capita growth in percentage on a quarterly basis and annualized from 2022 to 2024 in Canada.
| Quarter | GDP | GDP per capita |
|---|---|---|
| Q2 2022 | 3.8 | 2.5 |
| Q3 2022 | 1.8 | 2.5 |
| Q4 2022 | -0.9 | -0.8 |
| Q1 2023 | 3.4 | -4.3 |
| Q2 2023 | 0.7 | 0.3 |
| Q3 2023 | -0.3 | -1.8 |
| Q4 2023 | 0.1 | -4.1 |
| Q1 2024 | 1.7 | -3.3 |
| Q2 2024 | 2.1 | -0.6 |
Source: Statistics Canada. Table 36-10-0104-01 Quarterly gross domestic product, expenditure-based, Canada, Table 17-10-0009-01 Population estimates, quarterly.
Canada's GDP growth continues to surprise on the upside, but this is largely attributable to record population growth (+8.5% since January 2021).
Canada's strong economic fundamentals have helped the economy weather the impacts of higher interest rates.
That said, Canadian GDP per capita has declined in four consecutive quarters.
2.1% GDP growth in Q2 2024
-0.6% GDP per capita growth in Q2 2024
Canada's economic outlook is relatively strong
Canada's GDP growth is expected to outperform other G7 countries in 2025
OECD Forecast of annual GDP growth (percent)
Text description
Graph showing annual GDP growth (%) from 2019 to 2025 in Canada, US, Euro area the World and G7 countries, with years 2024 and 2025 being forecasts. It shows that Canada's GDP growth is expected to reach the same pace as the US by 2025, and will continue to be higher than the Euro area, despite a slower pace than the rest of the world.
| Pays | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Canada | 1.9 | -5.0 | 5.3 | 3.8 | 1.1 | 1.0 | 1.8 |
| United States | 2.5 | -2.2 | 5.8 | 1.9 | 2.5 | 2.6 | 1.8 |
| Euro Area | 1.6 | -6.2 | 5.8 | 3.5 | 0.5 | 0.7 | 1.5 |
| World | 2.8 | -3.0 | 6.4 | 3.4 | 3.1 | 3.1 | 3.2 |
| G7 | 1.7 | -4.3 | 5.5 | 2.3 | 1.7 | 1.6 | 1.5 |
Source: OECD, Economic Outlook (September 2024).
What has changed post-pandemic?
- Canada had a strong recovery from the pandemic; high population growth is fueling economic expansion, but productivity remains a concern; inflation has slowed, but cumulative price increases have led to affordability challenges.
- Accelerated adoption of digital technologies, including clean technologies and artificial intelligence, could act as a catalyst for business investment, productivity growth, and innovation.
- As a small open economy, Canada remains vulnerable to reorganization of supply chains catalyzed by geopolitical issues.
- Changes in the world of work, including automation and teleworking are reshaping economic landscapes and firm strategies, requiring adaptation to leverage new opportunities.
- Demographic changes (e.g., an aging workforce) require strong labour market participation, including from underrepresented groups.
Inflationary pressures have created affordability concerns
Shelter costs makes up the bulk of today's inflation
Components of Canada's headwind inflation, monthly, year-over-year, percentage
Text description
The graph shows the components of Canada's year-over-year inflation from January 2019 to September 2024, broken down into four categories: food purchased from stores, shelter, gasoline, and everything else. Inflation remained low and stable until early 2020, when a brief decline occurred. From mid-2021 to mid-2022, inflation surged, driven primarily by gasoline and "everything else". After peaking in 2022, inflation began to decline, with all components gradually reducing their contributions by 2024.
| Month | Food purchased from stores | Shelter | Gasoline | Everything else | All-items |
|---|---|---|---|---|---|
| Jan-2019 | 0.27759467 | 0.646299213 | -0.443551348 | 0.962330206 | 1.442672741 |
| Feb-2019 | 0.381503865 | 0.664457143 | -0.372705202 | 0.836178157 | 1.509433962 |
| Mar-2019 | 0.456242038 | 0.742628571 | -0.13891573 | 0.82115874 | 1.881113619 |
| Apr-2019 | 0.334756871 | 0.741040627 | -0.049395055 | 0.999103934 | 2.025506377 |
| May-2019 | 0.455919378 | 0.740512821 | -0.114745418 | 1.317113819 | 2.3988006 |
| Jun-2019 | 0.443840224 | 0.681565836 | -0.288847758 | 1.184399781 | 2.020958084 |
| Jul-2019 | 0.473551989 | 0.640340426 | -0.216978789 | 1.113510798 | 2.010424423 |
| Aug-2019 | 0.443529412 | 0.658810198 | -0.319085654 | 1.1541529 | 1.937406855 |
| Sep-2019 | 0.463917963 | 0.638077739 | -0.312501328 | 1.080363517 | 1.869857891 |
| Oct-2019 | 0.466226013 | 0.712901408 | -0.20946791 | 0.894620877 | 1.864280388 |
| Nov-2019 | 0.435914506 | 0.692171469 | 0.028420097 | 1.015778573 | 2.172284644 |
| Dec-2019 | 0.35929558 | 0.76907941 | 0.231101036 | 0.889399536 | 2.248875562 |
| Jan-2020 | 0.441957563 | 0.714 | 0.400909091 | 0.838342927 | 2.395209581 |
| Feb-2020 | 0.279333787 | 0.691066946 | 0.250649606 | 0.935083491 | 2.156133829 |
| Mar-2020 | 0.27952381 | 0.563845619 | -0.757654321 | 0.800547817 | 0.886262925 |
| Apr-2020 | 0.466064339 | 0.395954198 | -1.402431855 | 0.319825081 | -0.220588235 |
| May-2020 | 0.415010197 | 0.291553398 | -1.064207188 | -0.008388618 | -0.366032211 |
| Jun-2020 | 0.356237357 | 0.5005 | -0.561849512 | 0.365420299 | 0.660308144 |
| Jul-2020 | 0.283081045 | 0.437027027 | -0.531828794 | -0.042293877 | 0.145985401 |
| Aug-2020 | 0.189865229 | 0.456887967 | -0.396898771 | -0.103655594 | 0.14619883 |
| Sep-2020 | 0.151535326 | 0.518473757 | -0.383327434 | 0.227268424 | 0.513950073 |
| Oct-2020 | 0.272464164 | 0.535881949 | -0.442839506 | 0.293351373 | 0.65885798 |
| Nov-2020 | 0.190121457 | 0.576312543 | -0.426172765 | 0.612817944 | 0.953079179 |
| Dec-2020 | 0.062864793 | 0.492631579 | -0.303600724 | 0.481242182 | 0.73313783 |
| Jan-2021 | 0.007348285 | 0.407103825 | -0.141466346 | 0.750406049 | 1.023391813 |
| Feb-2021 | 0.147941567 | 0.426584867 | 0.215180871 | 0.301995752 | 1.091703057 |
| Mar-2021 | 0.148039867 | 0.711945392 | 1.510776119 | -0.174568114 | 2.196193265 |
| Apr-2021 | 0.007333772 | 0.959315068 | 2.675 | -0.251818332 | 3.389830508 |
| May-2021 | 0.095088641 | 1.248489011 | 1.859608434 | 0.397107816 | 3.600293902 |
| Jun-2021 | 0.072905759 | 1.30273224 | 1.368316292 | 0.317270198 | 3.06122449 |
| Jul-2021 | 0.109287116 | 1.445218579 | 1.322299151 | 0.84039632 | 3.717201166 |
| Aug-2021 | 0.288103448 | 1.441280654 | 1.391915734 | 0.966291405 | 4.087591241 |
| Sep-2021 | 0.470704225 | 1.436388323 | 1.405922009 | 1.069746582 | 4.38276114 |
| Oct-2021 | 0.438465644 | 1.42670263 | 1.783812081 | 1.0055651 | 4.654545455 |
| Nov-2021 | 0.525192563 | 1.442905178 | 1.865940054 | 0.886368885 | 4.720406681 |
| Dec-2021 | 0.637842876 | 1.623268325 | 1.424785761 | 1.117596487 | 4.80349345 |
| Jan-2022 | 0.7131971 | 1.756927224 | 1.233001865 | 1.434355723 | 5.13748191 |
| Feb-2022 | 0.81750983 | 1.866478495 | 1.25579101 | 1.747765662 | 5.687544996 |
| Mar-2022 | 0.955593443 | 1.92712 | 1.546988417 | 2.232189258 | 6.661891117 |
| Apr-2022 | 1.074947368 | 2.106224287 | 1.413970748 | 2.176062159 | 6.771204562 |
| May-2022 | 1.0709375 | 2.111021753 | 1.866383202 | 2.682153998 | 7.730496454 |
| Jun-2022 | 1.04083225 | 2.003089005 | 2.125836777 | 2.963198121 | 8.132956153 |
| Jul-2022 | 1.093989637 | 1.975491857 | 1.385958084 | 3.13415986 | 7.589599438 |
| Aug-2022 | 1.191777634 | 1.8782846 | 0.85993542 | 3.082625067 | 7.012622721 |
| Sep-2022 | 1.257451737 | 1.927266839 | 0.51479602 | 3.15842802 | 6.857942617 |
| Oct-2022 | 1.218793325 | 1.96957529 | 0.691023212 | 3.000385797 | 6.879777623 |
| Nov-2022 | 1.260114141 | 2.054150096 | 0.531461101 | 2.950391167 | 6.796116505 |
| Dec-2022 | 1.216624685 | 1.988137755 | 0.117354105 | 2.997327899 | 6.319444444 |
| Jan-2023 | 1.221349845 | 1.923604061 | 0.119669655 | 2.654165151 | 5.918788713 |
| Feb-2023 | 1.131519219 | 1.782818411 | -0.193128861 | 2.524022839 | 5.245231608 |
| Mar-2023 | 1.035123718 | 1.583052434 | -0.564917127 | 2.244927678 | 4.298186702 |
| Apr-2023 | 0.976882494 | 1.440395306 | -0.316865316 | 2.305462015 | 4.405874499 |
| May-2023 | 0.967026706 | 1.359141104 | -0.748648457 | 1.779952667 | 3.357472021 |
| Jun-2023 | 0.974545455 | 1.389792176 | -0.883844355 | 1.331802343 | 2.812295618 |
| Jul-2023 | 0.909652328 | 1.491230207 | -0.526674025 | 1.391630811 | 3.265839321 |
| Aug-2023 | 0.744270712 | 1.758592322 | 0.033279089 | 1.461236646 | 3.997378768 |
| Sep-2023 | 0.619295205 | 1.750060643 | 0.307289104 | 1.121652363 | 3.798297315 |
| Oct-2023 | 0.582473988 | 1.77145006 | -0.320816573 | 1.087828805 | 3.120936281 |
| Nov-2023 | 0.500307342 | 1.725986842 | -0.315797162 | 1.206386095 | 3.116883117 |
| Dec-2023 | 0.498604651 | 1.737187128 | 0.058905425 | 1.10177569 | 3.396472894 |
| Jan-2024 | 0.363490828 | 1.80452381 | -0.165025218 | 0.85600993 | 2.85899935 |
| Feb-2024 | 0.260309051 | 1.887908497 | 0.03409912 | 0.600854854 | 2.783171521 |
| Mar-2024 | 0.200594386 | 1.898460628 | 0.185398352 | 0.613164149 | 2.897617514 |
| Apr-2024 | 0.147252747 | 1.870129488 | 0.248359173 | 0.419680587 | 2.685421995 |
| May-2024 | 0.163396843 | 1.862456038 | 0.22909683 | 0.611292328 | 2.866242038 |
| Jun-2024 | 0.227712418 | 1.819749125 | 0.017426502 | 0.60686768 | 2.671755725 |
| Jul-2024 | 0.227093971 | 1.671987254 | 0.079451014 | 0.551512038 | 2.530044276 |
| Aug-2024 | 0.257326787 | 1.558017241 | -0.207966102 | 0.345993214 | 1.953371141 |
| Sep-2024 | 0.257607865 | 1.450829519 | -0.43958725 | 0.371528415 | 1.640378549 |
Source: Statistics Canada, Consumer Price Index, monthly, non-seasonally adjusted
Canada's inflation trend has followed closely that of its G7 peers
Monthly inflation, year-over-year, for selected countries, percentage
Text description
The graph shows the year-over-year monthly inflation rates for selected countries (Germany, Canada, the United States, France, Italy, and the United Kingdom) from January 2019 to July 2024. Inflation remained relatively low and stable across all countries until 2021, after which it rose sharply, peaking between mid-2022 and late 2022. Inflation rates varied, with the United Kingdom and Italy showing particularly high peaks. By late 2023 and into 2024, inflation declined across all countries, returning closer to pre-2021 levels.
| Month | Germany | Canada | United States | France | Italy | United Kingdom |
|---|---|---|---|---|---|---|
| Jan-2019 | 1.37 | 1.44 | 1.55 | 1.24 | 0.89 | 1.80 |
| Feb-2019 | 1.47 | 1.51 | 1.52 | 1.32 | 0.99 | 1.80 |
| Mar-2019 | 1.26 | 1.88 | 1.86 | 1.11 | 0.98 | 1.80 |
| Apr-2019 | 2.04 | 2.03 | 2.00 | 1.26 | 1.08 | 2.00 |
| May-2019 | 1.44 | 2.40 | 1.79 | 0.94 | 0.78 | 1.90 |
| Jun-2019 | 1.63 | 2.02 | 1.65 | 1.17 | 0.68 | 1.90 |
| Jul-2019 | 1.72 | 2.01 | 1.81 | 1.07 | 0.39 | 2.00 |
| Aug-2019 | 1.44 | 1.94 | 1.75 | 1.04 | 0.39 | 1.70 |
| Sep-2019 | 1.24 | 1.87 | 1.71 | 0.91 | 0.29 | 1.70 |
| Oct-2019 | 1.14 | 1.86 | 1.76 | 0.76 | 0.19 | 1.50 |
| Nov-2019 | 1.06 | 2.17 | 2.05 | 1.03 | 0.20 | 1.50 |
| Dec-2019 | 1.54 | 2.25 | 2.29 | 1.46 | 0.49 | 1.40 |
| Jan-2020 | 1.74 | 2.40 | 2.49 | 1.49 | 0.49 | 1.80 |
| Feb-2020 | 1.65 | 2.16 | 2.33 | 1.43 | 0.29 | 1.70 |
| Mar-2020 | 1.47 | 0.89 | 1.54 | 0.67 | 0.10 | 1.50 |
| Apr-2020 | 0.60 | -0.22 | 0.33 | 0.33 | 0.00 | 0.90 |
| May-2020 | 0.41 | -0.37 | 0.12 | 0.36 | -0.19 | 0.70 |
| Jun-2020 | 0.23 | 0.66 | 0.65 | 0.20 | -0.19 | 0.80 |
| Jul-2020 | -1.04 | 0.15 | 0.99 | 0.78 | -0.39 | 1.10 |
| Aug-2020 | -0.85 | 0.15 | 1.31 | 0.22 | -0.48 | 0.50 |
| Sep-2020 | -0.85 | 0.51 | 1.37 | 0.05 | -0.58 | 0.70 |
| Oct-2020 | -0.75 | 0.66 | 1.18 | 0.05 | -0.29 | 0.90 |
| Nov-2020 | -0.20 | 0.95 | 1.17 | 0.20 | -0.19 | 0.60 |
| Dec-2020 | -0.57 | 0.73 | 1.36 | -0.02 | -0.19 | 0.80 |
| Jan-2021 | 1.20 | 1.02 | 1.40 | 0.55 | 0.39 | 0.90 |
| Feb-2021 | 1.50 | 1.09 | 1.68 | 0.56 | 0.58 | 0.70 |
| Mar-2021 | 1.79 | 2.20 | 2.62 | 1.11 | 0.78 | 1.00 |
| Apr-2021 | 1.99 | 3.39 | 4.16 | 1.24 | 1.07 | 1.60 |
| May-2021 | 2.19 | 3.60 | 4.99 | 1.42 | 1.26 | 2.10 |
| Jun-2021 | 2.39 | 3.06 | 5.39 | 1.48 | 1.26 | 2.40 |
| Jul-2021 | 3.71 | 3.72 | 5.37 | 1.15 | 1.95 | 2.10 |
| Aug-2021 | 3.81 | 4.09 | 5.25 | 1.87 | 2.04 | 3.00 |
| Sep-2021 | 4.11 | 4.38 | 5.39 | 2.16 | 2.54 | 2.90 |
| Oct-2021 | 4.40 | 4.65 | 6.22 | 2.62 | 3.02 | 3.80 |
| Nov-2021 | 4.81 | 4.72 | 6.81 | 2.78 | 3.71 | 4.60 |
| Dec-2021 | 4.91 | 4.80 | 7.04 | 2.75 | 3.90 | 4.80 |
| Jan-2022 | 4.16 | 5.14 | 7.48 | 2.85 | 4.84 | 4.90 |
| Feb-2022 | 4.33 | 5.69 | 7.87 | 3.63 | 5.71 | 5.50 |
| Mar-2022 | 5.88 | 6.66 | 8.54 | 4.48 | 6.46 | 6.20 |
| Apr-2022 | 6.25 | 6.77 | 8.26 | 4.83 | 5.96 | 7.80 |
| May-2022 | 7.02 | 7.73 | 8.58 | 5.20 | 6.82 | 7.90 |
| Jun-2022 | 6.71 | 8.13 | 9.06 | 5.84 | 7.97 | 8.20 |
| Jul-2022 | 6.67 | 7.59 | 8.52 | 6.08 | 7.93 | 8.80 |
| Aug-2022 | 6.96 | 7.01 | 8.26 | 5.91 | 8.37 | 8.60 |
| Sep-2022 | 8.57 | 6.86 | 8.20 | 5.55 | 8.87 | 8.80 |
| Oct-2022 | 8.82 | 6.88 | 7.75 | 6.20 | 11.84 | 9.60 |
| Nov-2022 | 8.80 | 6.80 | 7.11 | 6.15 | 11.77 | 9.30 |
| Dec-2022 | 8.12 | 6.32 | 6.45 | 5.85 | 11.63 | 9.20 |
| Jan-2023 | 8.65 | 5.92 | 6.41 | 5.99 | 9.97 | 8.80 |
| Feb-2023 | 8.68 | 5.25 | 6.04 | 6.28 | 9.15 | 9.20 |
| Mar-2023 | 7.40 | 4.30 | 4.98 | 5.70 | 7.61 | 8.90 |
| Apr-2023 | 7.17 | 4.41 | 4.93 | 5.88 | 8.16 | 7.80 |
| May-2023 | 6.10 | 3.36 | 4.05 | 5.12 | 7.64 | 7.90 |
| Jun-2023 | 6.38 | 2.81 | 2.97 | 4.53 | 6.40 | 7.30 |
| Jul-2023 | 6.17 | 3.27 | 3.18 | 4.29 | 5.93 | 6.40 |
| Aug-2023 | 6.14 | 4.00 | 3.67 | 4.86 | 5.44 | 6.30 |
| Sep-2023 | 4.53 | 3.80 | 3.70 | 4.90 | 5.34 | 6.30 |
| Oct-2023 | 3.79 | 3.12 | 3.24 | 3.98 | 1.69 | 4.70 |
| Nov-2023 | 3.17 | 3.12 | 3.14 | 3.47 | 0.67 | 4.20 |
| Dec-2023 | 3.71 | 3.40 | 3.35 | 3.71 | 0.59 | 4.20 |
| Jan-2024 | 2.89 | 2.86 | 3.09 | 3.13 | 0.84 | 4.20 |
| Feb-2024 | 2.52 | 2.78 | 3.15 | 2.96 | 0.75 | 3.80 |
| Mar-2024 | 2.15 | 2.90 | 3.48 | 2.29 | 1.18 | 3.80 |
| Apr-2024 | 2.23 | 2.69 | 3.36 | 2.19 | 0.84 | 3.00 |
| May-2024 | 2.40 | 2.87 | 3.27 | 2.27 | 0.75 | 2.80 |
| Jun-2024 | 2.23 | 2.67 | 2.97 | 2.17 | 0.84 | 2.80 |
| Jul-2024 | 2.31 | 2.53 | 2.89 | 2.30 | 1.25 | 3.10 |
| Aug-2024 | 1.87 | 1.95 | 2.53 | 1.83 | 1.08 | 3.10 |
Source: OECD
Inflation rose sharply in Canada following the pandemic, similar to other G7 countries. It reached a peak of 8.1% in June 2022. Since then, inflation has been decelerating and now sits at 2% - the Bank of Canada's target.
Shelter costs remain a key concern. Canadian households are devoting more than 50% of their income towards housing-related expenses, compared with 35% before the Pandemic.
18%
Total cumulative price increases since February 2020
33%
Increase in the average price of built homes since February 2020
Source: Statistics Canada, Bank of Canada, and the Canadian Real Estate Association
Productivity growth is vital for Canada's economic strength
Out of the past fifteen quarters, only two have had positive productivity growth
Quarterly growth of labour productivity, percentage
Text description
The graph shows the quarterly growth of labor productivity (percentage) from Q4 2020 to Q2 2024. Labor productivity experienced a sharp decline in Q4 2020 (-2.0%) and remained negative throughout the period, except for Q1 2022 and Q4 2023, where it briefly surged to 0.9% and 0.3% respectively.
| Quarter | Labour productivity growth |
|---|---|
| Q4 2020 | -1.95471 |
| Q1 2021 | -1.20491 |
| Q2 2021 | -1.21673 |
| Q3 2021 | -0.6648 |
| Q4 2021 | -0.55998 |
| Q1 2022 | 0.873157 |
| Q2 2022 | -0.00195 |
| Q3 2022 | -0.10018 |
| Q4 2022 | -1.0427 |
| Q1 2023 | -0.76641 |
| Q2 2023 | -0.37476 |
| Q3 2023 | -0.47171 |
| Q4 2023 | 0.258969 |
| Q1 2024 | -0.26827 |
| Q2 2024 | -0.171 |
Source: Statistics Canada, Indexes of business sector labour productivity, unit labour cost and related measures, seasonally adjusted
Canada ranks second to last among its G7 peers in terms of productivity levels
GDP per hour worked, USD, Current dollars, 2023
Text description
Graph showing GDP per hour worked in USD current dollars in 2023 in the US, Germany, France, the UK, Italy, Canada and Japan. The United States has the highest number (97.72) and Japan the lowest (56.81).
| Country | GDP per hour worked (USD current dollars) |
|---|---|
| United States | 97.72 |
| Germany | 95.01 |
| France | 92.78 |
| United Kingdom | 79.68 |
| Italy | 76.28 |
| Canada | 71.45 |
| Japan | 56.81 |
Source: OECD
Canada, like the rest of the world, has been grappling with weak productivity growth for decades.
Canada was among the best productivity performers in the G7 from 2008-2019. Following the pandemic, there has been a pronounced downshift in labour productivity.
Several key sectors of the economy have seen negative productivity growth since the pandemic including energy (-0.8% per year), manufacturing (-0.4% per year), transportation and warehousing (-2.5% per year), and construction (-2.6% per year).
Business investment is a key source of innovation
Canadian businesses are not investing at the pace of their US counterparts
Business Investment per worker (thousands of 2017 USD)
Includes: non-residential structures, machinery and equipment, and intellectual property products
Excludes: residential structures.
Text description
Graph showing business investment per worker in thousands of 2017 USD, from 2007 to 2023, in Canada and the US. Both countries exhibited similar trends until 2014, with a decrease from 2008 to 2009, followed by a steady decrease until 2014. The countries diverged in 2014, as the US kept on a steady increase but Canada experienced a decline until 2015 and remained relatively stable ever since.
| Year | United States | Canada |
|---|---|---|
| 2007 | 13.46006 | 11.47103 |
| 2008 | 13.60251 | 11.5512 |
| 2009 | 12.0717 | 9.654698 |
| 2010 | 12.69068 | 10.65285 |
| 2011 | 13.72354 | 11.52621 |
| 2012 | 14.76426 | 12.14184 |
| 2013 | 15.31302 | 12.75975 |
| 2014 | 16.3026 | 13.16522 |
| 2015 | 16.54823 | 11.42535 |
| 2016 | 16.56886 | 10.48722 |
| 2017 | 17.11395 | 10.53397 |
| 2018 | 18.01159 | 10.90313 |
| 2019 | 18.4833 | 10.92148 |
| 2020 | 18.77269 | 10.53911 |
| 2021 | 19.28875 | 11.15563 |
| 2022 | 19.90413 | 11.35258 |
| 2023 | 20.73883 | 10.97099 |
Source: OECD; Statistics Canada; US Bureau of Economic Analysis.
R&D investment has stagnated in Canada while rising rapidly in other OECD countries
Business Expenditures on R&D as a percentage of GDP
Text description
Graph showing business expenditures on R&D as a percentage of GDP from 2001 to 2021 in Canada, United States and the OECD. Canada remained below the United States and the OECD and relatively stable at around 1% throughout the period.
| Year | Canada | United States | OECD |
|---|---|---|---|
| 2001 | 1.25 | 1.91 | 1.49 |
| 2002 | 1.13 | 1.77 | 1.44 |
| 2003 | 1.12 | 1.75 | 1.43 |
| 2004 | 1.13 | 1.70 | 1.42 |
| 2005 | 1.10 | 1.73 | 1.45 |
| 2006 | 1.10 | 1.79 | 1.48 |
| 2007 | 1.06 | 1.86 | 1.52 |
| 2008 | 1.00 | 1.97 | 1.57 |
| 2009 | 1.02 | 1.95 | 1.55 |
| 2010 | 0.95 | 1.85 | 1.52 |
| 2011 | 0.95 | 1.89 | 1.55 |
| 2012 | 0.91 | 1.86 | 1.56 |
| 2013 | 0.87 | 1.91 | 1.59 |
| 2014 | 0.91 | 1.94 | 1.62 |
| 2015 | 0.90 | 2.01 | 1.64 |
| 2016 | 0.92 | 2.08 | 1.66 |
| 2017 | 0.89 | 2.12 | 1.71 |
| 2018 | 0.93 | 2.22 | 1.77 |
| 2019 | 0.95 | 2.36 | 1.83 |
| 2020 | 1.07 | 2.60 | 1.96 |
| 2021 | 1.08 | 2.71 | 1.99 |
Source: OECD; Statistics Canada; US Bureau of Economic Analysis.
Investments in equipment, software, and R&D are crucial components of business innovation and productivity growth.
Canadian businesses invest less per worker compared to other G7 countries.
Canadian firms invest the most in dwellings and non-residential structures (e.g., plants and warehouses) and the least in machinery & equipment and intellectual property products (e.g., data, software, R&D).
| M&E |
0.1514 Lowest in G7 |
| IP products |
0.1245 Lowest in G7 |
| Structures |
0.724 Highest in G7 |
Businesses continue to be cautiously optimistic about the economy
Canadian Survey on Business Conditions – Q3 2024
- Overall conditions and business sentiment remain stable, with optimism improving in 2024.
- Over three-quarters (76.7%) of businesses were generally optimistic about the next 12 months, up slightly from the second quarter of 2024 (72.1%).
- Cost-related obstacles continue to worry businesses, with over one half (50.2%) of businesses expecting rising inflation to be an obstacle while more than four in ten (41.8%) of them expecting rising cost of inputs to be an issue.
- Nevertheless, pressures faced by businesses continued to ease since Q2 2024
Business Outlook: Over the next 12 months, firms…
- …have a somewhat pessimistic outlook: 9.9%
- …have a very pessimistic outlook: 3.2%
- …are uncertain of their outlook: 11.4%
- …have a very optimistic outlook: 28.3%
- …have a somewhat optimistic outlook: 48.4%
Source: Canadian Survey on Business Conditions Q3 2024 for the remaining statistics.
Businesses with < 20 employees, Tourism-related industries:
- More optimistic outlook
- Unfavourable interest rates limit firms' ability to take on more debt
- Better able to continue operating for 12+ months under current conditions
- Labour shortages have eased for tourism-related industries.