Based on the expert analysis and our database of 480+ CA industries, IBISWorld presents a list of the Industries with the Highest Labor Costs in Canada in 2025
The 10 Industries with the Highest Labor Costs in Canada
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View a list of the Top 25 industries with the highest labor costsIndustries with the Highest Labor Costs in Canada in 2025
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1. Commercial Banking in Canada
Labor Costs for 2025: $48.5B
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
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2. Engineering Services in Canada
Labor Costs for 2025: $17.8B
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
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3. Sporting Goods Stores in Canada
Labor Costs for 2025: $15.9B
The Sporting Goods Stores industry in Canada has withstood challenges from intense competition, with sales of bicycles, camping equipment, exercise and fitness equipment, apparel and footwear ultimately expected to grow. The industry was able to withstand the COVID-19 pandemic, rebounding on account of strong per capita disposable income growth and a renewed interest in pursuing athletic hobbies by Canadians. Nonetheless, the pandemic contributed to a challenging retail environment that has fared with competition from discount department stores and e-commerce sites, alternative outlets that are typically able to offer lower prices and a wider variety of goods to consumers. Overall, industry... Learn More
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4. Hotels & Motels in Canada
Labor Costs for 2025: $7.0B
Hotels and motels have benefited from rising incomes and population growth in recent years as consumers spent freely on vacations and hotel stays. But, when COVID-19 shut down tourism, hotel rooms were left empty, creating long-lasting financial and operational challenges. A travel slump through early-2021 left the industry struggling, as bookings stayed at a fraction of what they were in 2019. Yet, long periods at home left consumers with savings and pent-up demand to spend on trips as travel restrictions lifted. While enormous demand for travel led to a rapid recovery at hotels between 2022 and 2023, supply chain disruptions... Learn More
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5. Heating & Air-Conditioning Contractors in Canada
Labor Costs for 2025: $5.5B
The Heating and Air-Conditioning Contractors industry in Canada is highly reliant on construction activity across Canada, as most revenue is generated from heating, ventilation and air-conditioning (HVAC) installations in new residential and nonresidential buildings. As a significant share of industry revenue is generated from maintaining, monitoring and repairing existing equipment, the industry is somewhat shielded from volatile performance in construction markets. Weak nonresidential construction performance pressured industry demand amid the COVID-19 pandemic, though residential construction benefited from low interest rates at the same time. More recently, interest rate hikes have dampened residential construction activity. Recently growing consumer spending has supported... Learn More
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6. Home Care Providers in Canada
Labor Costs for 2025: $4.5B
The Home Care Providers industry in Canada has grown, with a multitude of diverse companies offering services to growing healthcare markets. Operators cater largely to the elderly population, which is growing at a rate exceeding the national population growth rate, and to individuals suffering from chronic illnesses and disabilities. As operators have expanded their service offerings, they have become an attractive alternative to institutionalized healthcare settings, such as hospitals and rehabilitative centres, which are generally less personal and more expensive. Consequently, industry revenue is projected to have increased at a CAGR of 5.5% to reach $7.1 billion in 2023, when... Learn More
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7. Road & Highway Construction in Canada
Labor Costs for 2025: $4.1B
The Road and Highway Construction industry in Canada builds, expands, alters and reconstructs roads, highways, streets and runways for the public and private sectors. Road and highway construction has benefited government spending on infrastructure, notably through the New Building Canada Plan and Investing in Canada Plan. Disruptions to projects due to the COVID-19 pandemic weighed heavily on industry growth around the middle of the current five-year period. Industry revenue has been declining at a CAGR of 1.2% over the past five years and is expected to reach $15.7 billion in 2023. This includes a 1.3% rise in 2023 alone, reflecting... Learn More
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8. Property, Casualty and Direct Insurance in Canada
Labor Costs for 2025: $3.2B
Property, casualty (P&C) and direct insurers service individuals and businesses by providing protection against a variety of man-made and natural events, such as car accidents, severe storms, wildfires, business theft and medical malpractice. The industry has slightly declined throughout 2023 but has still benefited from gradual growth in per capita disposable income and corporate profit, which have enabled industry operators to charge higher premiums. Moreover, as the Canadian population has grown, aged, urbanized and gotten progressively wealthier, demand was boosted for property, casualty and direct insurance. However, revenue is still expected to decrease at a CAGR of 0.5% to $77.6... Learn More
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9. Renewable Power in Canada
Labor Costs for 2025: $3.0B
Throughout 2023, renewable power companies have expanded. While the industry has benefited from an improving economy, industrial output has slightly decreased in response to the coronavirus pandemic. This dampened demand from some of the industry's major markets; specifically, commercial and industrial markets, as many industries were forced to shut down to help mitigate the spread of coronavirus. Overall, industry revenue has been growing at a CAGR of 2.2% over the past five years and is estimated to reach $39.5 billion in 2023. This includes a 1.1% rise in 2023 alone, when profit will reach 16.7%. This growth in 2023 can... Learn More
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10. Structural Metal Product Manufacturing in Canada
Labor Costs for 2025: $2.5B
The Structural Metal Product Manufacturing industry in produces fabricated joists, concrete reinforcing bars and metal plate work, among other products. Industry products are essential for strengthening and evening out concrete foundations and for framing roofs and floors to walls. Therefore, products are heavily used to construct commercial buildings and multifamily apartment buildings. Industry products are also used in energy, utility and transportation infrastructure projects. Strong industrial building construction supported the industry, and industry revenue has increased at a CAGR of 1.2% over the five years to 2023, including a decline of 4.6% to total an estimated $12.7 billion in 2023... Learn More
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Least Risky Industries in Canada in 2025
Based on the expert analysis and our database of 480+ CA industries, IBISWorld presents a list of the Least Risky Industries in Canada in 2025
VIEW ARTICLEBiggest Industries by Employment in Canada in 2025
Based on the expert analysis and our database of 480+ CA industries, IBISWorld presents a list of the Biggest Industries by Employment in Canada in 2025
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