This study set out to investigate the impacts of TikTok Canada and Canadian SMBs and creators using TikTok for their business and content.
This report illustrates the economic impact by focusing on full-time equivalent (FTE) employment, gross domestic product (GDP), and the federal, provincial and local tax revenue that TikTok generates for the Canadian economy.
In addition to the core economic analysis, the report shows the broader social benefits of TikTok, such as artistic and career development, small business promotion and a platform to share diverse Canadian voices.
Direct impacts
The main source of direct economic impact in any economy is money paid to or generated by individuals.
This direct impact includes salaries and wages paid to employees, as well as any profits it earns from its operations.
Indirect impacts
The employment, labour income, GDP and fiscal impacts generated within the supply chain, as businesses purchase goods and services to support their operations.
Induced impacts
The employment, labour income, GDP and fiscal impacts generated by workers who have earned income at the direct and indirect impact stages and spend their wages on everyday goods and services.
The sum of the direct, indirect and induced economic impacts is the total economic impact. These impacts have been calculated for TikTok Canada across three categories:
Gross Domestic Product (GDP)
A key economic indicator that represents the total monetary value of all goods and services produced within a country. The activities of industries and organizations to produce goods and services contribute to a jurisdiction’s GDP.
Full-Time Equivalent (FTE)
Employment is expressed in terms of FTEs, where an FTE is defined as a person who works a 40-hour work week, approximately 52 weeks per year. Importantly, employment impact is not a measure of the number of people employed (e.g., several part time positions can add up to a single FTE).
Fiscal impacts
Fiscal impacts are expressed as tax revenues at the federal and provincial levels and total tax revenue impacts are the sum of these two levels.
