In collaboration with Saint Mary’s University, Cape Breton University and the Institut de recherche et d’éducation pour les coopératives et les mutuelles (IRECUS), CMC is proud to announce the release of the 2024 report on the economic impact of co-operatives and mutuals in Canada. The detailed analysis was carried out during 2024, all while using 2021 data—the most recent and complete data available to our researchers. This report provides a comprehensive portrait of the co-operative and mutual ecosystem in Canada. The study also compares data collected in 2019 as well as in 2021 and provides an economic overview of Canadian during that specific period.
Co-operatives and Mutuals and the COVID-19 Pandemic
2021 was a year of recovery and uncertainty for Canadians and the economy, as the results of the COVID-19 pandemic were still being felt across the nation. The Canadian co-operative and mutual sector, like other small and medium-sized enterprises (SMEs), were feeling the pinch as they managed through the effects of lockdowns, supply chain delays, the Great Resignation, and shifts in purchasing patterns. Despite these complications, the co-operative and mutual ecosystem generally fared well in 2021.
Between 2019 and 2021, the number co-operatives and mutuals was down by 3.9%, but everything else was up: revenues by 9%, assets 22%, salaries 7%, and employees 7%.
In fact, during the most unstable years of the COVID-19 pandemic, the sector provided goods and services to their members and their communities. They continued to provide employment, resulting in revenue generation for the enterprises. The sector provided stability and resilience to individuals, communities, and the economy during this time of great upheaval.
The Economic Impact of Co-operatives and Mutuals in 2021
The co-operative and mutual sector in Canada accounted for over $52.8 billion of the gross domestic product (GDP), equivalent to 2.5% of the GDP. Moreover, the estimate for taxes paid to all levels of government was just under $10 billion.
In terms of jobs, the co-operative and mutual sector had over 194, 400 people with full-time or full-time equivalent employment, which provided $11.5 billion in household income. Non-financial (or general) co-operatives as well as credit unions and caisses populaires provided the bulk of these revenues.
Comparing 2021 and 2019
Overall, contributions from the co-operative and mutual sector to GDP grew by 1.5% between 2019 and 2021, increasing from $52 billion to $52.8 billion, whereas the Canadian economy saw only a 0.2% increase. The total of full-time or full-time equivalent jobs increased by 1.6%—a great difference when comparing the economy-wide decrease of 2.3%. However, the contribution to household income stayed the same.
A Strong and Diversified Co-operative and Mutual Movement
A Business Model Present Across Canada and in All Industries
Canada counts over 6,500 co-operatives and/or mutuals, with 45% located in Quebec due to its enabling environment.
Co-operatives and mutuals are found in a wide range of industries. However, the finance and insurance industry, the retail and wholesale sector, as well as housing and real estate made up the bulk of the revenues and employment in Canada.
A Small and Medium-Sized Business (SMEs) Movement
Except for 26 them, co-operatives and mutuals employed under 500 people, which places the sector in the SMEs category. Most non-financial co-operatives are locally focused small-medium enterprises. Nearly half of them have no employees at all, and the vast majority of the remainder have fewer than 99 employees.
Different Co-operative Types and Their Impact
There are different types of co-operatives across Canada. However, 70% of them fell under the “consumer” co-operative type, spreading throughout the finance and insurance sector, retail and wholesale trade industry, and housing.
When it comes to for-profit vs. non-profit, the high number of co-operative housing organizations tipped the scale, resulting in the sector being primarily more non-profit.
Lastly, credit unions, caisses populaires, insurance co-operatives and mutuals were the biggest employers in the sector in 2021.
The Distinctions Between Non-Financial (or General) Co-operatives, Credit Unions, Caisses Populaires, Insurance Co-operatives and Mutual Insurance Companies
Different pictures emerge when non-financial co-operatives, credit unions and caisses populaires, as well as insurance co-operatives and mutuals are individually studied. Non-financial (or general) co-operatives reach many more sectors and different industries. They also employ the most individuals and have the highest number of revenues. However, non-financial co-operatives do not have the highest salaries—in fact, credit unions and caisses populaires did. Not only that, but they also had the highest total assets, a given due to their financial nature. However, the amount of credit unions and caisses populaires decreased in 2021 due to company mergers. This is a continued global trend due to increased regulatory frameworks which came into play after the 2007–2008 financial crisis. Lastly, the mutual sector maybe small in Canada, yet it provided strong employment numbers, higher-than-average salaries, and solid assets numbers for their members.
Conclusion
Even throughout the most unstable years of the COVID-19 pandemic, the co-operative and mutual sector continued to provide goods and services to their members and their communities. They also provided employment, as well as revenue generation for the enterprise. Overall, the co-operative sector provided stability and resilience to individuals, communities, and the economy during a time of great upheaval.
To learn more about the Economic Impact of Co-operatives and Mutuals across Canada, we encourage you to read the full report below or take a look the infographic.