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Rise of the rent-a-cop: private security in Canada, 1991-2001.

Article Excerpt
Le present document repond aux questions sur la taille de l'industrie des services de securite et d'enquete au Canada. Il dresse un portrait de l'industrie en utilisant les donnees de Statistique Canada. Le secteur des services de securite prives a connu une croissance dramatique entre 1991 et 2001. Le nombre d'emplois a augmente de 69%, passant de 46 651 en 1991 a 78 919 en 2001. La croissance a ete particulierement importante vers la fin de la periode etudiee. Le taux d'emploi a augmente dans toutes les provinces (pour lesquelles des donnees sont disponibles). La plupart des employes des services de securite sont des hommes. En 2000, les revenus des entreprises de services de securite et d'enquete ont ete de 2,7 milliards de dollars.

Introduction

The size of the security industry in Canada has been an unanswered question for a number of years. A workshop in 1973 noted that,

in the past few years, the private policing industry in Canada has grown considerably, in fact. the rapidity of this growth and the emergence of numerous companies starting new businesses or expanding existing ones. make it very difficult to determine the extent and actual numbers of people involved in this field. (Arthurs 1974: i)

Fast-forward nearly 30 years, and there is little indication that the state of knowledge has improved: "Even rudimentary descriptive information on the number of establishments and the number of employees, or basic economic information on revenue and expenditures are difficult to find" (Law Commission of Canada 2002).

There is significant anecdotal evidence to suggest that the private security industry in Canada has grown rapidly over the past few decades. However, as noted above, there is a lack of empirical evidence to support or document the extent of this growth. This article will address the gap in available data by using information collected from a variety of sources by Statistics Canada. It is important that a clear picture of the size and nature of the industry be developed to inform policy decisions related to the security and investigation industry.

This article presents an analysis of the security industry from 1991 (2) to 2001. Data will profile the industry at the national and provincial levels. Included in the analysis are the number of employees and establishments, rates of pay, and estimated contribution to the Canadian economy. Perspective will be added to the growth in the private security sector through comparisons to the economy as a whole during the same period.

This study aims to serve as a basis for future research into the composition and dynamics of the private security sector in Canada. The numbers produced will provide policy makers and observers with data to guide future decisions on regulation and other issues.

Data sources

The primary data source for this analysis was the Survey of Employment, Payrolls, and Hours (SEPH). This survey, conducted monthly by Statistics Canada, is used to collect information on the work life of Canadians. It is the only source of detailed information on the total number of paid employees, payrolls, and hours at detailed provincial and industrial levels (Statistics Canada 2002b). (3) Annual aggregates of the survey will be used to examine the private security industry in Canada for the period 1991-2001.

The North American Industry Classification System (NAICS) will be used to define the private security field for the purpose of this article. It provides a broader definition of private security than just "security guards for hire." Included under NAICS category 5616, Investigation and Security Services, are investigation services, security guard and patrol services, armoured car services, security systems services, and locksmiths. Data were unavailable at the sub-industry level. However, all of the sub-industries included in the classification are in the business of providing physical security. Given this commonality of purpose, examining the various sub-industries as a whole provides a more complete picture of the search for security in Canada.

Additional information pertaining to the security industry in Canada is drawn from other databases maintained by Statistics Canada. These supplementary sources include the Labour Force Survey (LFS), the 1997 Survey of Investigation and Security Services, and estimates produced by the Industrial Organization and Finance Division (IOFD) at Statistics Canada. Where comparisons with the public police...

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