City of Vaughan

HIGHLIGHTS

 

• The national Consumer Price Index rose 3.2 per cent year-over-year in May, up from a 2.8 per cent increase in April
• The national unemployment rate fell 0.3 percentage points to 6.6 per cent in May, while the employment rate rose 0.2 percentage points to 60.7 per cent
• National Real Gross Domestic Product grew 0.5 per cent in April, its largest monthly increase since July 2025, following a 0.1 per cent contraction in March
• In May the Vaughan Business and Entrepreneurship Centre experienced demand for consulting in other services, retail trade, professional scientific and technical services, accommodation and food services, and education services
• Vaughan ranked third nationally in the value of industrial building permits according to the 2026 Q1 Building Permit Rankings
• Trulite Glass and Aluminum Solutions renewed its full-building lease for a 153,244-square-foot warehouse in the Vaughan Industrial Park
• Ontario supports over $5.2-million manufacturing investment by Letar Inc. in Thornhill, creating 19 new jobs
• York Region begins conducting its 2026 Employment Survey of local businesses
• Municipalities across York Region, including Vaughan, are evaluating further development charge reductions under the new Canada-Ontario Development Charge Reduction Program. Vaughan advances a multi-layered reduction to development charges to accelerate housing and business investment

---

 

SELECT ECONOMIC INDICATORS

The national Consumer Price Index rose 3.2 per cent year-over-year in May, up from a 2.8 per cent increase in April.

The Consumer Price Index rose 3.2 per cent on a year-over-year basis in May, up from a 2.8 per cent increase in April. Higher gasoline prices continued to drive the acceleration in headline inflation; however, even excluding gasoline, the Consumer Price Index still rose at a faster pace year-over-year in May (2.2 per cent) compared with April (2.0 per cent). On a month-over-month basis, the Consumer Price Index was up 1.0 per cent in May, and rose 0.5 per cent on a seasonally adjusted basis, largely attributed to increases in the recreation, education and reading, and transportation components.

Gasoline prices rose 33.2 per cent year-over-year in May, up from a 28.6 per cent increase in April, as supply uncertainty stemming from the conflict in the Middle East — specifically the closure of the Strait of Hormuz — continued to place upward pressure on prices for the third consecutive month. Consumers paid the highest prices for gasoline since June 2022, when Russia’s invasion of Ukraine created supply uncertainty. Prices for travel tours and air transportation also accelerated in May, reflecting higher operational costs, including jet fuel.

Prices for food purchased from stores rose 4.3 per cent year-over-year in May, the 16th consecutive month this category has outpaced headline inflation. Fresh vegetable prices climbed 9.0 per cent year-over-year, following a 4.1 per cent increase in April, with tomato prices alone rising 45.2 per cent as supply contractions in Mexico — linked to poor weather and reduced planted acreage following the implementation of United States tariffs — tightened availability. Fresh fruit prices also accelerated, rising 5.3 per cent year-over-year on higher berry and grape prices. For Vaughan’s agri-food and food processing sector, sustained upward pressure on produce input costs remains a key consideration for local processors and distributors managing margins amid ongoing trade uncertainty.

Shelter costs continued to decelerate, rising 1.7 per cent year-over-year in May, down slightly from 1.8 per cent in April. The homeowners’ replacement cost index declined for the 13th consecutive month, and the mortgage interest cost index recorded its 33rd consecutive month of year-over-year deceleration. Rent price growth also slowed to 3.5 per cent, the lowest rate since January 2022.

Elsewhere, prices for computer equipment, software and supplies rose 3.9 per cent year-over-year in May — the category’s first increase since 2020 — as heightened demand for computer memory and storage components tied to artificial intelligence data centre construction pushed up prices for key inputs.

 

The national unemployment rate fell 0.3 percentage points to 6.6 per cent in May, while the employment rate rose 0.2 percentage points to 60.7 per cent.

Employment increased by 88,000 (+0.4 per cent) in May, marking the first significant employment gain since November 2025 and offsetting a portion of the 112,000-job decline recorded over the first four months of the year. The unemployment rate fell 0.3 percentage points to 6.6 per cent, while the employment rate rose 0.2 percentage points to 60.7 per cent. Full-time employment rose by 154,000 (+0.9 per cent), more than offsetting a decline recorded from January to April, while part-time employment fell by 66,000 (-1.7 per cent).

The unemployment rate among youth aged 15 to 24 fell 0.9 percentage points to 13.4 per cent, its first decline since January, while the rate also fell among core-aged women (-0.4 percentage points to 5.5 per cent) and core-aged men (-0.4 percentage points to 5.7 per cent).

Employment gains were broad-based across industries, led by construction (+27,000; +1.7 per cent), information, culture and recreation (+19,000; +2.3 per cent), transportation and warehousing (+19,000; +1.7 per cent), and accommodation and food services (+17,000; +1.5 per cent) — several of which are among Vaughan’s key economic sectors. Manufacturing employment also edged up (+15,000; +0.8 per cent) nationally, although it remained down 44,000 compared with January 2025 amid ongoing pressure from United States tariffs on Canadian goods. Employment in wholesale and retail trade fell (-35,000; -1.2 per cent), continuing a downward trend that began in October 2025.

Employment in Ontario rose by 42,000 (+0.5 per cent) in May, the second consecutive monthly increase, bringing the cumulative April-May gain to 84,000 (+1.0 per cent). The unemployment rate in Ontario fell 0.5 percentage points to 7.0 per cent, its lowest level since September 2024. The unemployment rate in the Toronto census metropolitan area fell 1.1 percentage points to 6.8 per cent in May, the lowest level since November 2023.

Nationally, average hourly wages among employees rose 3.0 per cent (+$1.10 to $37.24) on a year-over-year basis in May, following growth of 4.5 per cent in April.

 

National Real Gross Domestic Product grew 0.5 per cent in April, its largest monthly increase since July 2025, following a 0.1 per cent contraction in March.

Real gross domestic product grew 0.5 per cent in April, its largest monthly expansion since July 2025, following a 0.1 per cent contraction in March. Goods-producing industries rose 1.2 per cent, and services-producing industries grew 0.3 per cent for the third consecutive month, with 14 of the 20 industrial sectors recording growth in April.

The construction sector, one of Vaughan’s key economic drivers, grew 0.7 per cent in April, its first increase in five months, with gains across all subsectors. Residential building construction rose 1.3 per cent, driven by alterations and improvements and increased construction of multi-unit buildings, while non-residential building construction expanded 1.2 per cent, marking its tenth consecutive month of growth on higher industrial building activity.

Manufacturing, another key sector for Vaughan, rose 0.6 per cent in April, driven by a 1.1 per cent expansion in durable-goods manufacturing. The machinery manufacturing subsector led the rebound, growing 3.0 per cent on strength in metalworking and industrial machinery manufacturing, coinciding with higher exports of industrial machinery, equipment and parts.

Transportation and warehousing rose 0.9 per cent in April, supported by a 3.8 per cent rebound in rail transportation — its largest increase since March 2025 — driven by higher grain and automotive carloadings. Pipeline transportation also grew 2.6 per cent, its largest expansion since July 2020, as operational disruptions that had slowed crude oil movement earlier in the year eased.

 

LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

Vaughan ranked third nationally in the value of industrial building permits according to the 2026 Q1 Building Permit Rankings.

By the end of the first quarter of 2026, Vaughan ranked third nationally in the value of industrial building permits and fourth in the number of those permits, continuing the momentum from 2025. Vaughan remains the most significant industrial market in York Region, with more than 105.7 million square feet of industrial inventory and an industrial vacancy rate of 2.4 per cent. Vaughan’s non-residential permits totaled more than $152.6 million in the first quarter, with more than $61 million coming from industrial development. The average asking industrial net rent in the Greater Toronto Area fell to $16.30 per square foot, a 6.2 per cent year-over-year decrease and the tenth consecutive quarterly decline, reflecting a softening in rental rates even as Vaughan continues to attract new industrial development.

Trulite Glass and Aluminum Solutions renewed its full-building lease for a 153,244-square-foot warehouse in the Vaughan Industrial Park.

Trulite Glass and Aluminum Solutions, a manufacturer of architectural aluminum and fabricated glass products, renewed its lease for the 153,244-square-foot warehouse it occupies at 20 Royal Group Crescent in the Vaughan Industrial Park. The building is owned by Dream Industrial REIT and GIC Private Limited. The renewal reflects continued demand for well-located industrial space among manufacturers serving Vaughan’s construction and building materials sector, one of the City’s key economic sectors, as glass, aluminum and other building product suppliers seek proximity to the City’s dense concentration of construction, design and infrastructure firms.

Ontario supports over $5.2-million manufacturing investment by Letar Inc. in Thornhill, creating 19 new jobs.

The Ontario government is supporting a $5.26-million investment by Letar Inc., a tier-1 manufacturer of aircraft and telecom components for the aerospace and defence sector, to expand its Thornhill facility by 10,000 square feet and add robotic automation and advanced five-axis milling equipment. The expansion is expected to create 19 new jobs and protect 27 existing positions, while enabling Letar to fabricate and test more specialized, higher-precision components for its aerospace, defence and OEM clients. The province is contributing $753,738 toward the project through the Regional Development Program’s Advanced Manufacturing and Innovation Competitiveness stream. The investment reinforces Vaughan’s growing profile in advanced manufacturing, automotive and defence, one of the City’s key economic sectors, and reflects continued momentum in precision manufacturing and supply chain capacity within the local business community.

York Region begins conducting its 2026 Employment Survey of local businesses.

The City of Vaughan’s Economic Development team is encouraging local businesses to participate in the 2026 York Region Employment Survey, being conducted door-to-door and online between May and August. The survey gathers key business and employment information — including company name, address, business activity and employee counts — that helps York Region and its local municipalities forecast future employment growth and land needs, and informs regional and local economic policies, programs and investment decisions across all of Vaughan’s key sectors. Businesses that complete the survey also receive a free listing in the York Region Business Directory.

Municipalities across York Region, including Vaughan, are evaluating further development charge reductions under the new Canada-Ontario Development Charge Reduction Program. Vaughan advances a multi-layered reduction to development charges to accelerate housing and business investment.

Cities across York Region are evaluating their approach to development charges following the Canada-Ontario Partnership to Build, an $8.8-billion, 10-year cost-shared federal-provincial program intended to reduce development charges and accelerate housing construction. To qualify for funding through the program’s Development Charge Reduction Program stream, municipalities must commit to cutting residential development charge rates by 30 to 50 per cent over three years from rates in effect as of March 30, 2026, and contribute at least 10 per cent of eligible infrastructure project costs. Regional municipalities are weighing the trade-off between stimulating housing supply and preserving development charge revenue, which continues to fund the majority of growth-related infrastructure such as roads, water, wastewater and transit.

Vaughan has moved through several rounds of development charge (DC) relief since late 2024, and by mid-2026 the cumulative effect is substantial. Council ratified a temporary reduction of residential DCs to zero for projects starting construction between Feb. 25, 2026 and Oct. 31, 2027, building on a 2024 cut that had already brought the low-rise residential rate down to $50,193 from $94,466. More recently, Vaughan’s City Council approved a 2026 Development Charges Background Study Update that permanently reduces non-residential DCs by roughly 50 per cent effective June 23, 2026, while residential rates are set at a 50 per cent temporary reduction through June 2029 to qualify the City for the federal-provincial Canada-Ontario Development Charge Reduction Program. Together, these measures make Vaughan one of the most aggressive municipalities in the GTA on development-cost relief, lowering upfront costs for both housing and commercial/industrial construction, while Council has committed to funding the resulting revenue gap through future budgets, grants and phased capital planning.