Home construction and renovation the largest contributor to Canada’s underground economy
By NextHome Staff
October 16, 2018
October 16, 2018
Looking to custom-build a home or do your dream renovation – and save a few bucks by using unlicensed contractors? One, you’re not alone. And two, it could be a huge, costly mistake. Indeed, residential construction is by far the largest contributor to Canada’s underground economy, according to Statistics Canada. In 2016, this sector was responsible for 26.6 per cent – or $13.7 billion – of this activity, compared to 13.5 per cent for the retail trade, and 12.1 per cent for accommodation and food services.The underground economy is defined as consisting of market-based economic activities, whether legal or illegal, that escape measurement because of their hidden, illegal or informal nature.And the numbers are huge – totaling $51.6 billion in Canada for 2016, or 2.5 per cent of gross domestic product, and up 3.5 per cent from 2015.The underground economy in Canada is even outperforming the total economy – increasing 3.5 per cent from 2015 to 2016, compared to the 2.0 per cent growth in total economy GDP.