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City of Vaughan

Vaughan remains the largest economy in York Region and a continued destination for business and investment

KEY HIGHLights

  • Vaughan remains the largest economy in York Region – accounting for 35 per cent of all businesses, 36 per cent of all employment and 36 per cent of all economic output in York Region in 2023.
  • Vaughan’s diverse economy has many industries with substantial economic output which drive outbound trade in York Region. In fact, Vaughan’s businesses accounted for 47 per cent of all York Region exports in 2019.
  • Vaughan continues to be a city on the rise and a destination for investment. In 2022, the City issued nearly $1.75 billion in building permits.
  • Vaughan’s industrial market is one of the busiest in the country – ranking 4th nationally by value of industrial permits – and breaking City records with a record construction value of $556.5 million in 2022.
  • Home to more than 19,500 businesses, small business continues to drive Vaughan – 87 per cent of the City’s businesses have fewer than 20 employees.
  • Vaughan’s employment has surpassed pre-pandemic levels with average annual employment growth of 4.54 per cent since 2020. Since 2013, the City’s average annual employment growth rate is 1.58 per cent.
  • In 2022, Vaughan was home to nearly 345,000 diverse and highly educated residents – that number is expected to increase by 66 per cent to more than 576,000 by 2051.
  • While both Vaughan and York Region saw a 3.9 per cent increase in economic output as measured by real GDP in 2022, this strong economic performance is expected to taper in 2023, recovering to see modest growth in the medium-term.
Vaughan’s key economic indicators continued to grow in 2022, highlighting the City’s economic resilience and continued choice as a destination for business and investment.
Real GDP

The City’s real gross domestic product (GDP) since 2013 has grown steadily and recovered fully from economic losses that occurred due to the COVID-19 pandemic. Figure 1 illustrates real GDP growth over a 10-year period, amounting to an average annual growth rate of 2.94 per cent.

Key sectors help to drive economic growth. For example, a leader in both goods movement and goods production in the Greater Toronto Area (GTA), Vaughan is responsible for 56 per cent and 50 per cent, respectively, of economic output in these sectors in York Region.

Vaughan’s diverse economy has many industries with substantial economic output which drive outbound trade in York Region. In fact, Vaughan’s businesses accounted for 47 per cent of all York Region exports in 2019.

The top three industries as measured by real GDP in 2022 were:

  1. Finance, Insurance and Real Estate (25.0 per cent)
  2. Construction (16.7 per cent)
  3. Manufacturing (16.2 per cent)

Figure 1: Real Gross Domestic Product, Vaughan 2013-2022 (Source: Conference Board of Canada)

Employment

Vaughan’s employment continues to grow steadily. The City’s employment has rebounded and surpassed pre-COVID-19 pandemic employment levels. Vaughan’s employment by place of work has continued to increase steadily over the last decade with an annual average growth of 1.58 per cent. After declines seen at the onset of the pandemic, employment has shown a dramatic rebound, now surpassing pre-pandemic levels – the average annual growth rate of employment since 2020 is 4.58 per cent.

Vaughan’s top three industries by employment in 2022 were:

  1. Construction (17.0 per cent)
  2. Manufacturing (14.7 per cent)
  3. Finance, Insurance and Real Estate (13.9 per cent)
Business Counts

Economic diversification is an important aspect of building a resilient economy. With more than 19,500 business in 2022 (Figure 2), Vaughan’s businesses span a variety of sectors and reflect a well-diversified economy as evidenced by its strong economic performance as measured by real GDP.

Small business continues to drive Vaughan – 87 per cent of the City’s businesses have fewer than 20 employees.

Vaughan’s top three industry sectors by number of businesses were:

  1. Professional (16.8 per cent)
  2. Construction (15.2 per cent)
  3. Finance Insurance and Real Estate (14.8 per cent)

In 2022, 325 businesses reported they had head offices in the City. Those head offices reflect the diversity of Vaughan’s economy, and include Coreio Inc., Recipe Unlimited, Grand & Toy Ltd., Anatolia Tile and Stone Inc., Condrain Group, Kohl & Frisch, Miele, Ganz,Yum! Brands, SmartCentres, GFL Environmental, Martinrea International and more.

Figure 2: Business Counts, Vaughan, 2022 (Source: Statistics Canada, Canadian Business Counts)

Building Permits

Vaughan is a city on the rise – since 2013, the City has issued nearly 42,000 building permits totalling $13.7 billion (Figure 3). In 2022, Vaughan issued permits for $1.7 billion in building construction value and ranked top 10 in Canada by value of permits for non-residential construction.

Vaughan’s industrial market is one of the busiest in the country – ranking 4th nationally by value of industrial permits – and breaking City records with a record construction value of $556.5 million in 2022.

Vaughan continues to be one of the largest industrial markets in the Greater Toronto Area, with a total industrial inventory of more than 98.4 million square feet at the end of the second quarter of 2023, with an additional 2 million square feet under construction, according to the latest industrial market report by Colliers.  In 2022, the top five cities by value of industrial permits in Canada were:

  1. Toronto
  2. Montreal
  3. Mississauga
  4. Vaughan
  5. Brampton

Figure 3: Building Permits, Vaughan, 2013-2022 (Source: City of Vaughan)

Population

In 2022, Vaughan was home to nearly 345,000 residents – that number is expected to increase by 66 per cent to more than 576,000 by 2051.

Since 2012, Vaughan’s population has grown at a steady pace. Ambitious federal immigration targets will sustain modest population growth, and Vaughan’s population is expected to follow this growth trend – climbing to nearly 365,000 people, and accounting for 27 per cent of the Region’s population by 2026.

Vaughan is home to a diverse population. The City’s residents are a mosaic of more than 217 ethnic or cultural origins and there are 113 unique languages spoken in Vaughan. The top five ethnic or cultural origins (excluding Canadian) in Vaughan are Italian, Chinese, Jewish, Russian, and Indian.

The City of Vaughan’s residents are also highly educated, constituting a highly skilled local talent pool. Seventy-three per cent of Vaughan’s population over 25 years old has a post-secondary certificate, diploma or degree – surpassing both the provincial (68 per cent) and national (67 per cent) average.

Figure 4: Population Estimates, Vaughan, 2012-2022, (Source: York Region Long Range Policy Planning)

Economic Development is the go-to source for insight into Vaughan’s economic community – as knowledge brokers, the department collects and utilizes a variety of data sources that are used to support our research and intelligence services for both the City of Vaughan and its business community.

From supporting small businesses through the business planning process, to end-to-end site selection assistance, to research and business intelligence, Economic Development is here to support businesses of all sizes to succeed in Vaughan and is your go-to source for insight into Vaughan’s economic community. Connect with us today.