Industries with the Highest Labor Costs in Canada in 2024

1. Commercial Banking in Canada

Labor Costs for 2024: $47.2B

Despite low interest rates and some hiccups in economic growth, commercial banks in Canada have expanded throughout 2023. Banks have done an exceptional job diversifying revenue streams, overcoming limits imposed by low interest rates, and increasing regulations. The industry primarily generates revenue through interest income sources, such as business loans and mortgages, but it also generates income through noninterest sources, which include fees on a variety of services and commissions. Industry revenue has been growing at a CAGR of 2.2% over the past five years and is expected to total $275.4 billion in 2023, when revenue will likely jump an... Learn More

2. Hospitals in Canada

Labor Costs for 2024: $46.1B

In the past five years, hospitals in Canada have seen a marginal decline in revenue. However, with robust federal support and a shift in focus, hospitals were able to navigate economic challenges from slumping inpatient admissions. COVID-19 cut surgical admissions, and consumer preference has shifted away from large hospitals. Canadians have more and more looked to specialized facilities for non-urgent treatment, especially for mental health- and substance abuse-related care. Still, initiatives geared at upgrading efficiency have helped hospitals in Canada, over 90.0% of which are nonprofit institutions, report operating surpluses as profit despite this decline. Industry-wide revenue has been slightly... Learn More

3. Colleges & Universities in Canada

Labor Costs for 2024: $22.8B

The Colleges and Universities industry in Canada has grown over the five years to 2023 despite the declining role of government funding and the spread of COVID-19 in Canada. Throughout the period, tight budgets have constrained federal and provincial funding for postsecondary education, especially amid the COVID-19 pandemic causing certain institutions to implement hiring and salary freezes to reduce expenses. At the same time, total enrolment has grown modestly, with most institutions also raising tuition rates. Colleges and Universities industry revenue has been expanding at a CAGR of 1.9% over the past five years and is expected to total $53.1... Learn More

4. Engineering Services in Canada

Labor Costs for 2024: $19.6B

The Engineering Services industry in Canada, which provide consulting, design, feasibility studies and technical services for a variety of projects, has grown as a result of improved downstream demand from several key markets, especially commodities-driven industries. Through 2020, the low prices of oil and has limited growth, with the COVID-19 pandemic execrating the decline in global demand. However, rapid growth in oil and gas prices in both 2021 and 2022 has driven a tremendous upswing in new demand from oil, gas and mining clients, propelling industry revenue to rise 13.6% in 2022 alone. Despite volatility, industry revenue is forecast to... Learn More

5. Full-Service Restaurants in Canada

Labor Costs for 2024: $14.2B

The Full-Service Restaurants industry in Canada has experienced an expansion in performance over the past five years, as the COVID-19 (coronavirus) pandemic erased several years of steady growth, but a forecast strong recovery offset this trend. Before the pandemic, rising per capita disposable income and consumer spending levels drove industry expansion. However, the pandemic created an unprecedented and steep fall in industry revenue, leading to widespread layoffs and closures. While remaining restaurants have adapted to unfavourable operating conditions by offering takeout and delivery options, depressed sales and rising costs have led to poor profitability among industry establishments. However, industry revenue... Learn More

6. New Car Dealers in Canada

Labor Costs for 2024: $12.5B

Revenue for the Canadian New Car Dealers industry in Canada has declined in recent years. While demand for automobiles had been driven by healthy economic conditions, such as rising consumer confidence and low unemployment, the COVID-19 pandemic caused the reversal of many of these trends. Due to the government's Economic Response Plan regarding the pandemic, disposable income in Canada rose in 2020 following various programs and support payments made to individuals and families, protecting operators from experiencing a more profound revenue decline. Rising disposable income encourages consumers to make big-ticket discretionary purchases, such as new vehicles, although elevated interest rates... Learn More

7. Supermarkets & Grocery Stores in Canada

Labor Costs for 2024: $12.5B

Supermarkets and grocery stores comprise Canada's most significant food retail channel. These establishments retail general lines of food products, including fresh and prepared meats, poultry and seafood, canned and frozen foods, fresh fruits and vegetables and various dairy products. The industry performed well in the years preceding the COVID-19 pandemic, as high incomes and Canada's rising population boosted demand for foodstuffs. Since everything was shut down during the pandemic, it became a favorite pastime for households to go food shopping. This raised demand for groceries and caused revenue to surge in 2020.

Droughts, supply chain disruptions and the conflict in... Learn More

8. Fast Food Restaurants in Canada

Labor Costs for 2024: $11.3B

The Fast Food Restaurants industry in Canada has expanded over the past five years, driven by higher consumer spending and product innovation. However, mounting internal competition and changing consumer tastes have pressured revenue growth during the same period. Products with higher profit, such as coffee and smoothies, have become more prominent at traditional fast-food restaurants. Furthermore, meal customization and high-quality ingredients have become increasingly popular in recent years, inducing major players in the industry to reconsider their overall strategy and menu offerings. Altogether, industry revenue is expected to rise at an annualized rate of 1.5% to $34.8 billion over the... Learn More

9. Electricians in Canada

Labor Costs for 2024: $10.5B

The Electricians industry in Canada provides an essential service for the construction of new buildings, in addition to homeowners and businesses in need of electrical repair or installation work. Industry operators run electrical and telecommunications wire and cabling through the internal structure of buildings. Additionally, they can be contracted for climate control, fire safety and fibre optic cable installations. They also perform work for large-scale industrial projects, such as factories and energy infrastructure, in addition to commercial or institutional buildings, such as office buildings and hospitals. The industry's largest companies pursue these lucrative contracts, while most contractors operate on a... Learn More

10. Primary Care Doctors in Canada

Labor Costs for 2024: $9.2B

Demographic trends drive the rising demand for comprehensive primary care in Canada. An aging population's expanding medical needs are increasing the demographic's consumption of medical services. Primary care physicians are also first in line to help this demographic navigate complex conditions and visit specialists. Sudden population growth in Canada – an outcome of a surge in immigration and temporary residents – has also expanded the need for primary care physicians. Rising spending on primary care was abruptly disrupted by COVID-19, leading providers to navigate unprecedented financial and operating pressures. Telehealth adoption did help primary care providers continue to meet with... Learn More