Industries with the Highest Labor Costs in Canada in 2025

1. Home Care Providers in Canada

Labor Costs for 2025: $4.5B

The Home Care Providers industry in Canada has grown, with a multitude of diverse companies offering services to growing healthcare markets. Operators cater largely to the elderly population, which is growing at a rate exceeding the national population growth rate, and to individuals suffering from chronic illnesses and disabilities. As operators have expanded their service offerings, they have become an attractive alternative to institutionalized healthcare settings, such as hospitals and rehabilitative centres, which are generally less personal and more expensive. Consequently, industry revenue is projected to have increased at a CAGR of 5.5% to reach $7.1 billion in 2023, when... Learn More

2. Pest Control in Canada

Labor Costs for 2025: $9B

While the rise of bed bugs across Canada has left homeowners and business owners frustrated, it has been a boon for the Pest Control industry in Canada. The increasing ubiquity of these nighttime pests has fuelled demand for pest extermination professionals, underpinning robust revenue growth. COVID-19 contributed to a temporary decline in demand for bed bug removal services, though it led to increased demand for rodent control as rats and mice sought new food sources as restaurants closed. As a result of heightened demand for extermination and prevention services, industry revenue is expected to grow, increasing an annualized 6.2% to... Learn More

3. Market Research in Canada

Labor Costs for 2025: $5B

Market research operators in Canada endured wild swings in revenue growth due to a sharp incline in economic volatility and dampened demand for market research services. Between 2018 and 2019, operators endured a decline amid mixed economic conditions and a changing media landscape. In 2020, COVID-19 presented an additional disruption to demand for operators' services, as uncertainty clouded the outlook. Although the economy reopened, a spike in inflationary pressures severely harmed revenue in 2021 and 2023, as corporate clients endured volatility across their balance sheets, which dampened demand for operators' services. This economic volatility also dampened profit for operators, with... Learn More

4. Automobile Engine & Parts Manufacturing in Canada

Labor Costs for 2025: $4B

Automobile engine and parts manufacturers have had a difficult time in recent years. The COVID-19 pandemic severely eroded revenue in 2020 as high economic uncertainty caused decreased manufacturing activity, reducing downstream demand from automakers. Most major auto engine and parts manufacturers are subsidiaries of automakers, and most parts that those companies use in finished cars come from in-house manufacturers.

After a temporary reprieve in 2021, revenue fell again in 2022. Supply chain issues limited microchips and other non-industry products for finished vehicles, which reduced downstream demand from for engines and parts. This was a missed opportunity, as demand for cars amid... Learn More

5. Boiler & Heat Exchanger Manufacturing in Canada

Labor Costs for 2025: $4B

Canadian boiler and heat exchanger manufacturers have endured significant volatility. Manufacturers design, produce and install power boilers and heat exchangers for various industrial processes like refining, oil extraction, building climate control, manufacturing and power generation. Plummeting export volumes, the COVID-19 pandemic and supply chain disruptions contributed to significant volatility during the current period. Ultimately, revenue plunged at an expected CAGR of 4.3% to $1.0 billion through the current period, despite a 0.1% rally in 2023, where profit reached 14.6%.

Energy-efficient heat transfer has grown increasingly important for buyers, especially in power generation markets. These buyers have increasingly shifted to sustainable energy... Learn More

6. Debt Collection Agencies in Canada

Labor Costs for 2025: $4B

Debt collection agencies in Canada have slowly grown throughout the period as economic swings affected their ability to collect debt. During the pandemic, insolvency among consumers and businesses fell drastically as government support and policies pushed banks and other institutions to defer mortgage, credit card and other payments for the time being. This weakened the need for debt collection agencies as companies. As the economy recovered and payments were reinstated, insolvency trends reversed and climbed as clients required debt collection agencies to help secure their money. Overall, revenue is expected to grow a CAGR of 1.5% to $831.6 million through... Learn More

7. Canned Fruit & Vegetable Processing in Canada

Labor Costs for 2025: $3B

Canned fruit and vegetable processors in Canada manufacture vegetable-based sauces, soups, canned produce, juices and dehydrated fruits and vegetables. Expanding health concerns regarding some of canned fruit and vegetable processors' products and boosting income levels have prompted consumers to turn to fresher or premium alternative goods. Despite manufacturers' efforts to introduce healthier brand extensions and safer packaging, demand for canned fruit and vegetable products has waned, pressuring canned fruit and vegetable processors' revenue. During the current period, boosted production from some processors has helped to mitigate overall losses. IBISWorld expects revenue for canned fruit and vegetable processing in Canada to... Learn More

8. Flower & Nursery Stock Wholesaling in Canada

Labor Costs for 2025: $1B

The Flower and Nursery Stock Wholesaling industry in Canada primarily sells flowers, including cut flowers, potted plants and nursery stock, like grasses, shrubs, bushes and vines. The industry has continued to fare with increasing external competition that have produced a long-term structural decline. However, favourable economic conditions have led to growth in disposable income and expenditure in residential renovations, despite the COVID-19 pandemic, which have led to a temporary reversal of fortunes for wholesalers. These trends have boosted demand in downstream markets for discretionary goods, like flowers and nursery stock. Structural changes in the industry have also given room for... Learn More

9. Paper Product Manufacturing in Canada

Labor Costs for 2025: $1B

The Paper Product Manufacturing industry in Canada has struggled to compete in a highly globalized market The industry produces numerous paper products, including crepe paper, cigarette wrappers, food trays and paper novelties. While long-term trends have been toward diminished paper consumption in developed economies, consumption of such products is still high relative to office paper and many other paper products that have lost ground to digitalization. The industry has struggled from an appreciating loonie, which has boosted the value of imports. This exposure to foreign competitors has hurt the industry as a growing share of domestic demand has been satisfied... Learn More

10. Audio & Video Equipment Manufacturing in Canada

Labor Costs for 2025: $1B

A key ability that successful companies in this industry possess is the ability to adapt their business strategy to changing consumer and other market preferences. As a result, most manufacturers spend a significant amount of money on research and development initiatives. Audio and video manufacturers have faced volatile demand trends during the period. 2020 provided manufacturers with strong demand since extremely low-interest rates and rapidly rising housing starts led to increased downstream demand from new homeowners looking to outfit their property. This carried over into 2021 as rates remained low and housing starts remained high. As the Bank of Canada... Learn More