Canada’s arts and culture sector has grown nearly 8% over the past three years compared to the overall economy’s growth of 4%, according to a recent report from the Canadian Chamber of Commerce.

The study, which was released on Tuesday (Oct. 28), was conducted by the Chamber of Commerce’s Business Data Lab, analyzing data from sources such as Statistics Canada.

According to the report, in 2024 the arts and culture industry directly supported more than 668,000 jobs, contributing over $65 billion to Canada’s GDP. When including the industry’s indirect and induced impact, it supported over 1.1 million jobs and contributed $131 billion to the economy.

Audiovisual and interactive media accounted for the largest share of that contribution, supporting 291,000 jobs and adding $36 billion to the GDP. It is followed by visual and applied arts, with the two areas combined making up more than 70% of the total sector’s economic impact. Other parts of the sector captured in the survey include published works, live performances, training and sound recordings.

Despite the arts and culture sector’s growth, the report points out how federal culture funding has slipped over recent years as a share of total budget expenditure. Culture and arts spending in 2023-24 represented 1% of expenditure ($4.64 billion). Estimates to date for 2024-25 indicate a drop to 0.94% ($4.56 billion), and estimates for 2025-26 predict the drop will continue to 0.93% ($4.53 billion) of expenditure.

According to the report, the arts and culture industry generates $29 in economic activity for each dollar of federal investment.

The report found that it is essential for increased public investment in the arts across all levels of government in order to deliver the fullest possible social, cultural and economic benefits for Canadians.

According to 2021 data, for every dollar invested, the arts, entertainment and recreation industry produced $1.06 for Canada’s GDP, while the information and culture sector came in at $1.02. These sectors outpaced other industries such as agriculture ($1.01), oil and gas ($0.99) and manufacturing ($0.78), while falling below trade ($1.15) and construction ($1.06).

Arts, entertainment and recreation led industries in jobs, supporting 15 jobs per $1 million in output. Information and culture was able to support a bit less than half, coming in at seven.

The overwhelming bulk of the economic and job impact is concentrated in the provinces of Ontario, Quebec and B.C. Ontario accounts for almost half of the sector’s direct, indirect and induced GDP, bringing in $60 billion in 2023 across 458,000 jobs. Visual and applied arts leads GDP in Ontario, bringing in $16.42 billion, with audiovisual and interactive media right behind at $16.41 billion.

Quebec and B.C.’s industries both contributed similar amounts to GDP. The former accounted for $29 billion across 265,000 jobs, and the latter brought in $24 billion through 211,000 jobs. Audiovisual and interactive media was the top segment for both Quebec and B.C., with respective GDPs of $8.3 and $9.5 billion.

The report also found that arts and culture non-profits deal with significantly lower revenues compared to those in areas such as health, social services and religion, due to arts and culture groups having smaller organizational footprints.

The strain that arts organizations face is exacerbated by a lower level of charitable contributions from Canadians. The report found Canadians on average donate 0.8% of their income to charities, compared to a North American average of 0.9% and a global average of 1%.

These struggles trickle down to workforce capacity in the sector, as many arts organizations rely heavily on freelancers and self-employed artists. According to 2021 data, the median income of those artists comes in at $30,200 compared to the $49,600 earned by other workers, compounding their affordability crisis.

As a potential solution, the report calls for increased business investment to support the revenue diversification of arts and culture organizations. This includes contributing to matching programs, utilizing tax credits and supporting funding initiatives to close the giving gap.

The full report can be found here.

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