Industries with the Highest Labor Costs in Canada in 2025

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

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

3. Full-Service Restaurants in Canada

Labor Costs for 2025: $16.3B

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

4. 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

5. Fast Food Restaurants in Canada

Labor Costs for 2025: $11.4B

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

6. Electricians in Canada

Labor Costs for 2025: $10.9B

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

7. Management Consulting in Canada

Labor Costs for 2025: $8.2B

Management consulting in Canada is composed of companies that provide consulting services to private businesses and the public sector. These advisory services are tailored to provide strategic, financial, marketing, operational and supply chain management consulting services. Businesses partake in mergers and acquisitions, joint ventures, divestitures and initial public offerings based on their expectations of what the future holds. Although the company provides countercyclical services that support industry revenue during economic downturns, the COVID-19 pandemic hindered industry operations in unprecedented ways in 2020. Revenue is expected to grow at a CAGR of 2.0% to $23.9 billion over the years to 2023,... Learn More

8. Software Publishing in Canada

Labor Costs for 2025: $7.3B

The Software Publishing industry in Canada has exhibited strong growth over the five years to 2023 amid the introduction of new products, chiefly within the enterprise services and data analytics domains. Rising consumer spending has boosted demand from both businesses and consumers. Additionally, technological advancements and the increased use of laptops and smartphones in companies and consumers' everyday lives have necessitated the need for wide software varieties, boosting industry demand. However, the continued use of illegally downloaded software has hampered growth. Still, industry revenue has been growing an annualized 8.0% over the past five years and is expected to reach... Learn More

9. 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

10. Industrial Machinery & Equipment Wholesaling in Canada

Labor Costs for 2025: $6.1B

Industrial wholesalers distribute a variety of products for multiple industries. These products include hoists, forklifts, diesel engines, pipes and valves. Despite the variety of product offerings, success is ultimately dependent on industrial and manufacturing activity in Canada. Downstream demand was negatively affected by the COVID-19 pandemic, with revenue falling 6.0% in 2020. Favourable economic conditions fuelled industry revenue growth in both 2021 and 2022, as downstream activity increased. Industrial wholesale revenue is expected to grow at a CAGR of 0.6% to $29.3 billion through the end of 2023, despite a dip of 1.0% in 2023 alone.

Growth in revenue alongside growing... Learn More