1. 1 INTERNATIONAL CONFERENCE ON ESTABLISHMENT SURVEYS - III JUNE 2007 MONTREAL, QUÉBEC HEAD OFFICES AS AN INDUSTRY By Stuart Chandler, Tony Dupuis and Rob Williams with acknowledgements to Allan Forward

2. Slide 2 Enterprise Statistics Division A division within Statistics Canada Responsible for: –processing of approximately 60 annual business surveys (Unified Enterprise Survey) –conducting the annual survey of Head Offices

3. Slide 3 Business Register (BR) Survey frame containing over 2 million businesses Majority of business surveys are sampled from this frame The UES is a subset of the BR

4. Slide 4 Current Head Office Survey at Statistics Canada What is a Head Office? Selection of Head Office units -within the UES -lower threshold

5. Slide 5 (contd) Supply data to System of National Accounts Head Office data allocated to other industries No Head Office industry estimates are published

6. Slide 6 Analysis of Head Office Industry in Canada –data gaps in GDP –shifts in employment and salaries and wages Collection vehicle for emerging issues Why a Head Office Industry?

7. Slide 7 Head Office Location Counts The unit of observation is the statistical location. 2004200520062006% In Survey12491203123228 % Not in Survey34463337315672 % As an industry469845404388100 %

8. Slide 8 Measure of Enterprise Revenue 200420052006 In Survey730725829 Not in Survey406417355 As an industry1,1361,1421,185 2005 (%) 63.5 % 36.5 % 100 % Values are in billions CAN $ and were derived by location from the enterprise revenue figures from the BR.

9. Slide 9 Potential Contribution of Head Office to the economy for RY2005 Total Expenses Total Revenue Salaries and Wages Purchased Services Surplus2005 (%) 25.128.78.37.33.6In Survey 63.5% 14.416.54.84.22.1Not In Survey 36.5% 39.545.213.111.55.7Total100% Values are in billions CAN $

10. Slide 10 Head Office Employment Employment numbers are from the BR. 2004200520062006% In Survey105,619109,587108,68052 % Not in Survey92,79597,43599,31648 % As an industry198,414207,022207,996100 %

11. Slide 11 Head Office Employment In Survey Employment numbers are from the BR.

12. Slide 12 Head Office Employment Not In Survey Employment numbers are from the BR.

13. Slide 13 Total Head Office Employment Employment numbers are from the BR.

14. Slide 14 Data Gap and Employment Shifts Summary 3156 Head Offices currently not being surveyed Missing Head Office data from enterprises representing 36.5% of total enterprise revenue Unable to analyze Head Office employment numbers, trends or characteristics

15. Slide 15 Revenue above 25m CAN $ threshold Values are in billions CAN $ and were derived by location from the enterprise revenue figures from the BR, where the enterprise revenue was greater than or equal to 25m CAN $. 0 200 400 600 800 1,000 1,200 Billions NOT IN SURVEY 391.8404.2342.1 IN SURVEY 729.5724.0829.7 200420052006 65.1% 0 200 400 600 800 1,000 1,200 Billions NOT IN SURVEY 392404342 IN SURVEY 730724830 200420052006 65.1% 64.2% 70.8% 2,080 Head Office Locations }

16. Slide 16 Coverage: Revenue for all Head Offices vs. revenue for units above the threshold Values are in billions CAN $ and were derived by location from the enterprise revenue figures from the BR, comparing Total Revenue for all Head Offices vs. revenue for the enterprises with revenue greater than or equal to 25m CAN $. 98.73% 98.82%98.88% 989 1,039 1,089 1,139 1,189 Billions 200420052006 98.73% 98.82%98.88% 989 1,039 1,089 1,139 1,189 Billions 200420052006 Totals 1,1361,1421,185 >= 25M 1,1211,1281,172 98.73%98.82%98.88%

17. Slide 17 Coverage: Employment for all Head Offices vs. employment for units above or equal the threshold 100,000 120,000 140,000 160,000 180,000 200,000 220,000 Total employment 198,414207,022207,996 >= 25m CAN $ 177,915188,698190,405 200420052006 89.7%91.1%91.5% Employment numbers are from the BR.

18. Slide 18 Provincial and Territorial Sample The above CVs were calculated based on 1 take all and 2 take some strata for each Province/Territory and were calculated at the location level, for enterprises where the enterprise revenue was greater than or equal to 25m CAN $. LOCATIONCV=10%CV=5%CV=2%CV=1% AB3558130162 BC294398120 MB21274051 NB18202633 NL18 1925 NS19212629 NT/NU/YK4444 ON7699167362 PE8888 QC4363157194 SK18213139 Total2873817061027

19. Slide 19 Sampling Scenarios Billions $CDN 63.5% Approx 98.8% 750 800 850 900 950 1000 1050 1100 1150 1200 1250 RY2006 Survey CensusCensus with Threshold Probability Sample 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 RevenueLocations 1,2324,3882,0801,027 Head Office Locations Billions CAN $

20. Slide 20 CONCLUSIONS: HEAD OFFICE AS AN INDUSTRY IT COULD FILL DATA GAPS IN THE GDP IT WOULD ALLOW FOR A MORE COMPREHENSIVE ANALYSIS OF THE HEAD OFFICE INDUSTRY COULD BE USED AS A COLLECTION VEHICLE FOR DATA ON EMERGING ISSUES