Industries with the Highest Labor Costs in Canada in 2021

1. Hospitals in Canada

Labor Costs for 2021: $41.4B

The Hospitals industry in Canada, which includes medical and surgical hospitals, has exhibited stable growth between 2016 and 2019. Canada's healthcare system is predominately public, with 70.4% of funding coming from the public sector and the remainder from the private sector, according to the “National Health Expenditure Trends 2020” report by the Canadian Institute for Health Information (CIHI). Therefore, the industry is heavily dependent 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... Learn More

2. Full-Service Restaurants in Canada

Labor Costs for 2021: $10.7B

The Full-Service Restaurants industry in Canada has experienced an overall decline in performance over the five years to 2021 as the COVID-19 (coronavirus) pandemic erased several years of steady growth. 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 establishments. However, as the broader economy expands,... Learn More

3. Fast Food Restaurants in Canada

Labor Costs for 2021: $8.7B

The Fast Food Restaurants industry in Canada has expanded over the five years to 2021, despite mounting internal competition, the COVID-19 (coronavirus) pandemic and changing consumer tastes. Higher consumer spending and product innovation by fast food restaurants have renewed consumer interest in fast food. Products with higher profit, such as coffee, smoothies and salads, have become more prominent at traditional fast food restaurants, leading to an increase in average industry profit. 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. As a... Learn More

4. Electricians in Canada

Labor Costs for 2021: $7.5B

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, as well as 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

5. Electric Power Transmission in Canada

Labor Costs for 2021: $7.3B

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 dependent 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

6. Oil & Gas Field Services in Canada

Labor Costs for 2021: $6.9B

Operators in the Oil and Gas Field Services industry in Canada have experienced volatile market conditions over the five years to 2021. World commodity prices performed well over the years leading up to the reporting period. However, a fall in natural gas and crude oil prices adversely affected revenue in 2015, 2016 and 2020. While conditions began to improve in 2017 as prices returned to growth, they remain low relative to the peaks reached prior to the reporting period. Over the five years to 2021, IBISWorld forecasts revenue will rise an annualized 0.3% to $25.0 billion. Industry revenue is expected... Learn More

7. Oil Drilling & Gas Extraction in Canada

Labor Costs for 2021: $6.7B

The Oil Drilling and Gas Extraction industry in Canada is highly dependent on global market prices of crude oil and natural gas. The industry experienced booming 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. However, the prices of both commodities are expected to grow over the five years to 2021, resulting in growth in industry revenue and capital investment. Industry revenue is expected to grow an annualized 10.6% to $126.1 billion over the... Learn More

8. Pharmacies & Drug Stores in Canada

Labor Costs for 2021: $6.6B

Over the five years to 2021, the Pharmacies and Drug Stores industry in Canada has benefited from the fact that pharmaceuticals currently comprise one of the largest health expenditure categories in Canada. Although increasing pharmaceutical prices have bolstered industry revenue over the five years to 2021, many provincial drug programs have restricted their prescription prices to cut healthcare costs to consumers, hurting industry operators in the process. For example, many territories have required generic drugs to be marked down by a percentage of the patent drug equivalent, limiting revenue growth and hindering more robust industry profit growth. British Columbia's reference-based... Learn More

9. Long-Distance Freight Trucking in Canada

Labor Costs for 2021: $5.6B

The Long-Distance Freight Trucking industry in Canada is expected to experience marginal growth at an annualized rate of 0.5% to reach $26.5 billion over the five years to 2021, which includes an increase of 13.8% over 2021 as the Canadian economy recovers from the COVID-19 (coronavirus) pandemic. Pre-pandemic, economic conditions began to recover after a decline in global commodity prices between late 2014 and 2016, and industrial, retail and trade activity climbed for the majority of the current period. This led to the need to move goods between manufacturers and retailers increasing, boosting demand for industry services. However, the industry... Learn More

10. Software Publishing in Canada

Labor Costs for 2021: $5.6B

The Software Publishing industry in Canada has exhibited strong growth over the five years to 2021, 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 businesses and consumers' everyday lives have necessitated the need for wide varieties of software, which have boosted industry demand. However, the continued use of illegally downloaded software has hampered industry growth. Still, industry revenue is expected to grow an annualized 8.1% to $15.3 billion over the... Learn More