Industries with the Highest Labor Costs in Canada in 2026

• 1. IT Consulting in Canada

  Labor Costs for 2026: $52.2B

  The rapid pace of technological change propelled the IT Consulting industry in Canada, with the prevalence of cloud-based services, mobile apps and other cutting-edge software fueling spending across the economy. The advent of artificial intelligence (AI) technology joins the long list of cutting-edge trends fueling need for IT consultants across various sectors. The Canadian government is simultaneously bolstering the industry with its large-scale investments, announcing a $2.0 billion inves...

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• 2. Commercial Banking in Canada

  Labor Costs for 2026: $46.5B

  The high interest rate environment experienced over the five years to 2025, along with overall economic growth, has benefitted the Commercial Banking industry in Canada. Banks have done an exceptional job diversifying revenue streams, due to higher interest rates and despite 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 var...

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• 3. Hospitals in Canada

  Labor Costs for 2026: $44.4B

  Hospitals, serving as the primary providers of specialized and emergency medical services, are the most significant portion of health care spending in 2024, according to the Canadian Institute for Health Information (CIHI). Hospitals treat patients regardless of economic circumstances, but income growth and universal insurance coverage have made elective care more accessible to a broader population. While the pandemic's sudden impact left hospitals to face unprecedented challenges to finances...

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• 4. Colleges & Universities in Canada

  Labor Costs for 2026: $24.4B

  Colleges and universities in Canada have seen significant shifts in funding sources in recent years. While provincial government funding continues to account for a larger share of their revenue, the federal government's significant increase in higher education funding has benefited universities, especially those with extensive research and development initiatives. This federal support helped offset inconsistent provincial funding, which has ranged from lacklustre to significant between provin...

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• 5. Primary Care Doctors in Canada

  Labor Costs for 2026: $23.1B

  Demographic trends drive the rising demand for primary care doctor services. The growing older adult population’s expanding medical needs are increasing the number of people seeking medical care. General practitioners (GPs) and family physicians (FPs) remain the primary point of contact for older adults, coordinating care for multiple conditions and navigating specialist services. Additional demand, driven by a surge in immigration and the influx of temporary residents, has also increased the...

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• 6. Engineering Services in Canada

  Labor Costs for 2026: $19.5B

  The Canadian Engineering Services industry has navigated a tumultuous yet resilient period, facing challenges from fluctuating commodity prices and rapid technological competition. Public infrastructure spending and a rebound in resource‑related work have offset pockets of weakness in private investment. Firms have increased their reliance on clients in resource extraction and infrastructure, particularly in Alberta and Ontario, while also diversifying into higher‑value advisory, operations a...

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• 7. Full-Service Restaurants in Canada

  Labor Costs for 2026: $15.8B

  Full-service restaurants in Canada have staged a strong rebound from their pandemic lows, but elevated inflation, rising costs and shifting consumer behaviour are now slowing the pace of growth. The industry remains on a growth trajectory in both historical and forecast terms, yet restaurants face persistent pressure on profitability and demand. Overall, industry revenue has expanded at a CAGR of 9.8% to C$47.2 billion over the five years to 2025, including a 0.2% decline in 2025 alone.

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• 8. Pharmacies & Drug Stores in Canada

  Labor Costs for 2026: $13.3B

  Canadian pharmacies and drug stores have been experiencing moderate volatility. Drug stores have benefitted from growing health-related expenditures, with prescription medications remaining popular among consumers. Although increasing pharmaceutical prices have bolstered revenue, many provincial drug programs restricted prescription prices to cut healthcare costs, requiring generic drugs to be marked down by a percentage of the patented drug equivalent, which limits revenue growth and prevent...

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• 9. Supermarkets & Grocery Stores in Canada

  Labor Costs for 2026: $12.9B

  Supermarkets and grocery stores have faced major volatility through the current period, forcing notable strategic operational and pricing shifts to compete with a widening array of substitutes and internal competitors. Grocers first encountered unprecedented demand as lockdowns redirected consumers' spending from entertainment to at-home essentials. Sales spiked, but the boom was fleeting. At the start of the period, factors like declining disposable income and soaring food prices reversed th...

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• 10. New Car Dealers in Canada

  Labor Costs for 2026: $11.7B

  New car dealers have been riding out a period of disruption and adaptation, facing headwinds and finding new growth paths. Dealer performance has shown signs of rebound lately, as stabilizing interest rates started to unlock pent-up demand among everyday buyers and commercial clients. While consumer confidence hasn’t fully recovered, the slight easing in financing costs and some improvement in disposable incomes have helped keep the wheels turning for the Canadian auto retail sector. Dealers,...

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