Industries with the Highest Labor Costs in Canada in 2022

1. 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

2. 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

3. Oil Drilling & Gas Extraction in Canada

Labor Costs for 2022: $6.3B

The Oil Drilling and Gas Extraction industry in Canada is highly dependent on global market prices of crude oil and natural gas. The industry exhibited strong growth in the years leading up to the reporting period, with rising prices leading to significant growth in investment. In turn, industry production of natural gas and oil has risen consistently over the past decade. Further, the prices of both commodities are expected to grow over the five years to 2022, resulting in growth in industry revenue and capital investment. Industry revenue is expected to grow an annualized 4.9% to $133.1 billion over the... Learn More

4. Long-Distance Freight Trucking in Canada

Labor Costs for 2022: $5.3B

The Long-Distance Freight Trucking industry in Canada is expected to exhibit marginal growth at an annualized rate of 0.1% to reach $27.2 billion over the five years to 2022, which includes an increase of 1.8% in 2022 as the economic activity continues to improve following the initial spread of COVID-19 (coronavirus). Prior to the pandemic, economic conditions began to recover after a decline in global commodity prices between late 2014 and 2016. This increased demand for industry services as more goods required transportation. However, the industry also contended with rising internal price-based competition, which is not expected to lessen as... Learn More

5. Security Services in Canada

Labor Costs for 2022: $4.9B

The Security Services industry in Canada provides investigative, guard and patrol services and in-transit cash and valuables protection. Industry revenue has increased an annualized 4.6% to $8.6 billion over the five years to 2022 as guard, investigative and other services have become more popular among corporate and government clients. The industry's diverse market insulated it from a large decline due to the COVID-19 (coronavirus) pandemic, though the industry has benefited from economic expansion, with revenue growing an anticipated 3.1% in 2022 alone. However, the pandemic has led to a decline in industry profit over the past five years.

An increasing number... Learn More

6. Life Insurance & Annuities in Canada

Labor Costs for 2022: $4.6B

The Life Insurance and Annuities industry in Canada has experienced a decline over the five years to 2022 amid the COVID-19 (coronavirus) pandemic. Industry operators accept liability for annuities and life insurance policies, disability income and accidental death and dismemberment insurance policies, while also investing the premiums received by clients into a variety of financial securities. The industry has mainly suffered from the negative economic effects caused by the coronavirus pandemic, such as volatile interest rates and an increase in the morbidity rate. As a result, industry revenue is expected to decline an annualized 0.9% to $87.1 billion over the... Learn More

7. Human Resources & Benefits Administration in Canada

Labor Costs for 2022: $4.4B

The Human Resources and Benefits Administration industry in Canada provides a wide range of everyday office administrative services to Canadian businesses. Industry operators provide financial planning, billing and record keeping, personnel management, physical distribution and logistics on a day-to-day or contract basis. Since operators specialize in outsourced business management and employment-related services, industry performance is correlated with corporate profit, unemployment and the number of businesses operating within Canada. The industry has struggled with volatile corporate profit over the five years to 2022, which has forced businesses to reconsider paying for extra value-added services and high levels of competition that has... Learn More

8. Other Plastic Product Manufacturing in Canada

Labor Costs for 2022: $3.8B

Plastic products have a wide range of uses, which has helped to moderate volatility in demand for goods produced by the Other Plastic Product Manufacturing industry in Canada in recent years. IBISWorld expects industry revenue to grow an annualized 1.7% to $19.1 billion over the five years to 2022. The industry has benefited from a variety of factors through much of the past five years, including steady growth in demand from domestic automotive and related parts manufacturers. Another significant source of demand comes from construction markets, which require industry products such as plastic doors, windows and plumbing fixtures. The industry... Learn More

9. Data Processing & Hosting Services in Canada

Labor Costs for 2022: $3.3B

The Data Processing and Hosting Services industry in Canada provides data analytics and management services used for a variety of information technology (IT) related activities. The industry's key clients are located in the financial, advertising and e-commerce sectors, which compile large amounts of consumer and financial data that need to be managed and analyzed to produce actionable insights. Over the five years to 2022, the industry has performed well as businesses increasingly outsourced IT infrastructure needs and industry operators advanced their data analysis techniques. Consequently, industry revenue is expected to grow an annualized 7.0% to $9.4 billion over the five... Learn More

10. Pharmaceuticals & Pharmacy Supplies Wholesaling in Canada

Labor Costs for 2022: $3.1B

The Pharmaceuticals and Pharmacy Supplies Wholesaling industry in Canada has benefited from its integral role in the pharmaceutical supply chain without the plague of external competition from manufacturers, which is endemic to most wholesale industries. Pharmaceutical wholesalers and self-distributing pharmacy chains, which are excluded from the industry, account for 95.0% of total pharmaceuticals distributed to pharmacies and to long-term and specialized healthcare facilities. Pharmaceuticals have comprised one of the fastest-growing segments of healthcare expenditures over the past two decades. Due to the burgeoning elderly population's sustained need for pharmaceuticals, many downstream markets have sought out wholesalers to provide quick product... Learn More