--- canonical_url: "https://csls.ca/research/the-evolution-of-manufacturing-employment-in-canada-the-role-of-outsourcing/" title: "The Evolution of Manufacturing Employment in Canada: The Role of Outsourcing" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-02T12:51:26+00:00" date_modified: "2026-07-02T12:51:26+00:00" post_type: "research" summary: "" post_tag: - "Canada" - "input-output analysis" - "manufacturing employment" - "occupational decomposition" - "outsourcing" - "services" country_focus: - "Canada" province_region: - "National" research_theme: - "Labour Markets" - "Sector/Industry Analysis" featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp" status: "publish" --- # The Evolution of Manufacturing Employment in Canada: The Role of Outsourcing Canonical URL: https://csls.ca/research/the-evolution-of-manufacturing-employment-in-canada-the-role-of-outsourcing/ # The Evolution of Manufacturing Employment in Canada: The Role of Outsourcing [Download full PDF report](https://csls.ca/pdf/csls2015-18-1.pdf) Cite this report × Cite this report as: Capeluck, Evan. 2015. “The Evolution of Manufacturing Employment in Canada: The Role of Outsourcing.” CSLS Research Report 2015-18. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/the-evolution-of-manufacturing-employment-in-canada-the-role-of-outsourcing/ ## Author: - Evan Capeluck Norman Paterson School of International Affairs, Carleton University ## Report 2015-18 October 2015 83 pages ## Related research [Measuring the Appropriate Outcomes for Better Decision-Making: A Framework to Guide the Analysis of Health Policy Matthew Calver March 2016 | Report 2016-03 | 132 pages](https://csls.ca/research/measuring-the-appropriate-outcomes-for-better-decision-making-a-framework-to-guide-the-analysis-of-health-policy-2016-03/) [Living Standards Domain of the Canadian Index of Wellbeing Andrew Sharpe, Christopher Ross November 2011 | Report 2011-17 | 124 pages](https://csls.ca/research/living-standards-domain-of-the-canadian-index-of-wellbeing-2011-17/) [Productivity: Key to Economic Success Centre for the Study of Living Standards (CSLS) March 1998 | Report 1998-01 | 99 pages](https://csls.ca/research/productivity-key-to-economic-success/) [Apprenticeship in Canada: A Training System Under Siege? Andrew Sharpe December 1999 | Report 1999-03 | 59 pages](https://csls.ca/research/apprenticeship-in-canadaa-training-system-under-siege/) [A Survey of Indicators of Economic and Social Well-being Andrew Sharpe July 1999 | Report 1999-cprn | 72 pages](https://csls.ca/research/a-survey-of-indicators-of-economic-and-social-well-being/) [Creating a More Efficient Labour Market Centre for the Study of Living Standards (CSLS) June 2001 | Report 2001-02 | 147 pages](https://csls.ca/research/creating-a-more-efficient-labour-market/) [The Impact of the National Child Benefit Supplement on the Low Income Status of Canadian Families with Children: The SPSD/M Results Centre for the Study of Living Standards (CSLS) June 2002 | Report 2002-01 | 59 pages](https://csls.ca/research/the-impact-of-the-national-child-benefit-supplement-on-the-low-income-status-of-canadian-families-with-children-the-spsd-m-results/) [Productivity Trends in Natural Resources Industries in Canada Centre for the Study of Living Standards (CSLS) February 2003 | Report 2003-01a | 69 pages](https://csls.ca/research/productivity-trends-in-natural-resources-industries-in-canada/) [Productivity in the Forest Products Sector: A Review of the Literature Centre for the Study of Living Standards (CSLS) February 2003 | Report 2003-02 | 28 pages](https://csls.ca/research/productivity-in-the-forest-products-sector-a-review-of-the-literature/) [An Analysis of Productivity Trends in the Forest Products Sector in Canada Centre for the Study of Living Standards (CSLS) February 2003 | Report 2003-01b | 64 pages](https://csls.ca/research/an-analysis-of-productivity-trends-in-the-forest-products-sector-in-canada/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn The objective of this report is to examine the impact of outsourcing on manufacturing’s employment share in Canada. The report shows that outsourcing accounts for a small but significant part of the decline in the manufacturing employment share over the 1976-2008 period. Two approaches are used to determine the contribution of outsourcing to the evolution in manufacturing’s employment share in the report. The first approach uses input-output (I-O) analysis to estimate the impact of changes in the I-O structure of the economy on employment shares by industry. The second approach uses aggregate industry-by-occupation employment data to decompose changes in employment shares by industry in various ways. L’objectif de ce rapport est d’examiner l’incidence de l’externalisation sur la part de l’emploi manufacturier au Canada. Le rapport montre que l’externalisation explique une part faible, mais significative, du déclin de la part de l’emploi manufacturier au cours de la période 1976-2008. Deux approches sont utilisées pour déterminer la contribution de l’externalisation à l’évolution de la part de l’emploi manufacturier dans le rapport. La première approche utilise l’analyse des entrées-sorties pour estimer l’incidence des changements dans la structure des entrées-sorties de l’économie sur les parts d’emploi par industrie. La seconde approche utilise des données d’emploi agrégées par industrie et profession pour décomposer les variations des parts d’emploi par industrie selon diverses méthodes. [Download full PDF report](https://csls.ca/pdf/csls2015-18-1.pdf)