Industries with the Highest Labor Costs in Canada in 2022

1. Commercial Banking in Canada

Labor Costs for 2022: $45.1B

Despite low interest rates and some hiccups in economic growth, the Commercial Banking industry in Canada has expanded over the five years to 2022. Banks have done an exceptional job of diversifying revenue streams and 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. Consequently, industry revenue is expected to grow an annualized 1.8% to $211.8 billion over the five years to 2022, including an increase... Learn More

2. Hospitals in Canada

Labor Costs for 2022: $37.5B

The Hospitals industry in Canada, which includes medical and surgical hospitals, has exhibited stable growth over the five years to 2022. Canada's healthcare system is predominately public, with nearly three-quarters of funding coming from the public sector and the remainder from the private sector, according to the Canadian Institute for Health Information (CIHI). Therefore, the industry is heavily reliant on both federal and provincial funding, which is mostly allocated via global budgets systems, where a fixed payment amount is allocated to a provider to cover operating expenses for a period of time.

While industry operators initially benefited from increased federal funding,... Learn More

3. IT Consulting in Canada

Labor Costs for 2022: $27.9B

The IT Consulting industry in Canada is composed of companies that help private businesses and public sector agencies design, implement and manage information technology (IT) systems. Demand for industry services is positively affected by growth in corporate profit and business sentiment. As these drivers strengthen, companies increase expenditure on industry services. Over the five years to 2022, there has been a significant degree of technological change due to the increasing prevalence of cloud-based services, mobile apps and other cutting-edge software. These technological changes have been a significant driver of growth in the industry, while also responsible for declining industry-relevant revenue... Learn More

4. Colleges & Universities in Canada

Labor Costs for 2022: $18.8B

The Colleges and Universities industry in Canada has grown over the five years to 2022 despite the declining role of government funding and the spread of COVID-19 (coronavirus) in Canada. During the period, tight budgets have constrained federal and provincial funding for postsecondary education, 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. Overall, industry revenue is estimated to increase an annualized 1.5% to $48.4 billion over the five years to 2022, including an increase of 1.7% in 2022.

Most colleges and... Learn More

5. Engineering Services in Canada

Labor Costs for 2022: $15.7B

The Engineering Services industry in Canada is expected to grow as a result of improved downstream demand from several key markets. This industry provides consulting, design, feasibility studies and technical services for a variety of projects that require a deep understanding of the principles of engineering. Prior to the five years to 2022, industry revenue reached an all-time high in 2014 as increased corporate profit fuelled greater investment in nonresidential construction. Over the past five years, the low price of crude oil between 2017 and 2020 is expected to limit growth. In 2020, low oil and gas prices combined with... Learn More

6. Supermarkets & Grocery Stores in Canada

Labor Costs for 2022: $10.9B

The Supermarkets and Grocery Stores industry in Canada has continued growing over the five years to 2022, despite the COVID-19 (coronavirus) pandemic. While rising levels of consumer spending and per capita disposable income provided an optimal business environment, the spread of supercentres has stifled industry revenue as it increased price competition and provided customers with a one-stop shopping experience. Many consumers sought cost savings at grocery stores, stocking up on promotional items or trading down to private-label brands. In response, retailers expanded their private-label brands to appeal to these consumers. However, while this shift has helped operators maintain sales volumes,... Learn More

7. New Car Dealers in Canada

Labor Costs for 2022: $10.6B

Revenue for the Canadian New Car Dealers industry in Canada is expected to expand, albeit marginally, over the five years to 2022. While demand for automobiles has been driven by healthy economic conditions during most of the period, such as rising consumer confidence and low unemployment, the COVID-19 (coronavirus) pandemic has caused the reversal of many of these trends. However, 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... Learn More

8. Full-Service Restaurants in Canada

Labor Costs for 2022: $9.4B

The Full-Service Restaurants industry in Canada has experienced an expansion in performance over the five years to 2022, as the COVID-19 (coronavirus) pandemic erased several years of steady growth, but a forecast strong recovery offset this trend. Prior to the pandemic, rising levels of per capita disposable income and consumer spending drove industry expansion. The pandemic, however, created an unprecedented and precipitous fall in industry revenue, which led to widespread layoffs and closures. While remaining operators have adapted to unfavourable operating conditions by offering takeout and delivery options, depressed sales and rising costs have led to poor profitability among industry... Learn More

9. Fast Food Restaurants in Canada

Labor Costs for 2022: $9.0B

The Fast Food Restaurants industry in Canada has stagnated over the five years to 2022. Mounting internal competition, the COVID-19 (coronavirus) pandemic and changing consumer tastes have had a negative effect on this industry over the five years to 2022. Simultaneously, higher consumer spending and product innovation by fast food restaurants have renewed consumer interest in fast food. 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... Learn More

10. Electric Power Transmission in Canada

Labor Costs for 2022: $8.0B

The Electric Power Transmission industry in Canada is responsible for storing and distributing electricity from Canada's upstream generation facilities. Industry operators manage transmission and distribution networks that total over 160,000.0 kilometres to serve residential, industrial and commercial customers. Industry performance is reliant on electricity prices within provinces, although the inelasticity of energy demand and the high degree of regulation insulates operators from any significant revenue declines. Industry performance is also closely tied to demand from major industrial, residential and commercial markets. While residential market demand is somewhat inelastic, industrial and commercial output and demand are much more variable, so performance... Learn More