Economic and Investment Update – March 2023
- The Consumer Price Index (CPI) rose to 5.9 per cent year-over-year in January.
- The national unemployment rate remains steady at 5.0 per cent in February.
- Real Gross Domestic Product (GDP) decreased slightly by 0.1 per cent in December.
- The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in February by Professional, Scientific & Technical Services, Retail Trade, and Accommodation & Food Services industries.
- Vaughan continues to be home to ground-breaking innovative companies – Vaughan-headquartered Drone Delivery Canada was awarded funding from the Downsview Aerospace Innovation and Research (DAIR) Green Fund for its clean energy drone delivery solution.
- Teledyne Geospatial continues to revolutionize land surveying with the release of the Galaxy Onboard workflow solution to support airborne land surveying.
- PICCO Group receives the 2022 Grande Pinnacle award from Natural Stone Institute, for their work on the Utopia Project in Grand Rapids, Michigan.
SELECT Economic Indicators
The Consumer Price Index (CPI) rose to 5.9 per cent year-over-year in January.
The Consumer Price Index (CPI) rose to 5.9 per cent year-over-year in January. Food prices which include groceries and food from restaurants have risen at a slightly faster pace in January (+10.4 per cent) than in December (+10.1 per cent). The continued rising cost of groceries was driven primarily by meat prices which increased 7.3 per cent since December, which has resulted in the largest month-over-month increase in grocery costs since June 2004.
Shelter prices have increased at a slower rate on a year-over-year basis rising 6.0 per cent in January after a 7.0 per cent increase in December. However, mortgage interest costs have continued to rise at a faster pace on a year-over-year basis rising 21.2 per cent in January, the largest reported increase since September 1982.
The unemployment rate remains near a record low.
In February employment continues to hold steady (+22,000 jobs) with the unemployment rate remaining unchanged at 5.0 per cent. For the second consecutive month employment growth in health care and social assistance has risen, adding 15,000 jobs in February 2023. According to the 2022 York Region Employment Survey, Vaughan’s health care and social assistance sector was the fastest growing industry between 2019 and 2022 adding 3,030 jobs.
Employment for women aged 55 to 64 rose by 30,000 jobs in February with 6 in 10 (60.8 per cent) women in the age group being employed. This was the highest proportion on record for this age group rising 1.2 percentage points from the preceding high in January (59.6 per cent).
The employment rate continues to remain at near record lows, with the recorded low being 4.9 per cent which was observed in June and July of 2022. The labour force participation rate continues to hold steady at 65.7 per cent, an increase of 0.5 percentage points when compared to September 2022. Increases in labour force participation during this period were mainly attributed to increases in employment by core-aged women (25 to 54 years of age) and women aged 55 to 64 years of age.
Real Gross Domestic Product (GDP) decreased slightly in December.
Real Gross Domestic Product (GDP), which measures the inflation-adjusted value of goods and services produced in the economy, decreased by 0.1 per cent in December.
The transportation and warehousing sector experienced a contraction in December 2022 due to adverse weather conditions. These conditions resulted in this industry sector recording a decrease (-2.3 per cent) for the first time since January 2022.
Public sector industries (Education, health care and social assistance and public administration) combined grew 3.0 per cent in 2022 and contributed the most to increases in service-producing industries. Client-facing industries (Accommodation and food services) grew substantially in 2022 mainly due to the removal of pandemic-related restrictions. Growth in these industries was 23.2 per cent in 2022 and was primarily driven by gains in food services and drinking place establishments.
LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES
The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in February by Professional, Scientific & Technical Services, Retail Trade, and Accommodation & Food Services industries.
ED’s Small Business and Entrepreneurship top five industries seeking consultations in February were:
- Professional, Scientific & Technical Services (31 per cent)
- Retail Trade (25 per cent)
- Accommodation & Food Services and Other Services (13 per cent respectively)
- Health Care & Social Assistance (8 per cent)
- Administrative & Support & Waste Management (6 per cent)
Vaughan continues to be home to groundbreaking innovative companies – Vaughan-headquartered Drone Delivery Canada was awarded funding from the Downsview Aerospace Innovation and Research (DAIR) Green Fund for its clean energy drone delivery solution.
Vaughan-headquartered Drone Delivery Canada a leader in drone delivery technology was recently awarded $75,000 in funding from the DAIR Green Fund for its clean energy drone delivery solution. The DAIR Green fund which is funded by the Federal Economic Development Agency of Southern Ontario provides financial support for collaborative projects that can demonstrate an impact on the future of aerospace through sustainable solutions.
Drone Delivery Canada intends to utilize funding to support their Care by Air project and costs associated with regulatory approvals to allow Drone Delivery Canada to conduct beyond visual line of sight operations. This would allow Drone Delivery Canada to operate more complex delivery routes with fewer human resources required.
Teledyne Geospatial revolutionizes land surveying with the release of the Galaxy Onboard workflow solution to support airborne land surveying.
Teledyne Geospatial is a Vaughan-based designer and manufacturer of lidar and geospatial technologies used to create highly detailed three-dimensional maps of the earth’s surface. Teledyne products are used in applications such as land surveying, forestry, urban planning, archeology, and space exploration. The recently released Galaxy Onboard workflow solution lowers the barrier of entry for organizations venturing into airborne mapping. The solution offers surveyors the ability to deliver quality controlled processed data in real-time.
The City of Vaughan is also a smart, sustainable, and resilient community and a Smart City leader. The City achieved the Smart Cities Early Adopter International Organization of Standardization (ISO) 37122 certifications from the World Council on City Data. Vaughan is among the first cities worldwide to be certified under this new Smart City standard, joining an early adopter cohort of 10 cities globally.
PICCO Group receives 2022 Grande Pinnacle award from Natural Stone Institute
PICCO Group a Vaughan-based structural engineering firm provides unmatched expertise in stone, structural, and residential engineering. The organization was recently presented with the Grand Pinnacle award by the Natural Stone Institute at StonExpo in Las Vegas for work on the Utopia Project in Grand Rapids, Michigan.
“PICCO Group’s considerations for material extraction and handling, cubic geometry studies, stone engineering, installation, and fabrication proved intrinsic to meeting the delicate project requirements and high standards. The sculpture’s design required precision engineering and innovation with every solution. With stone panels up to 4,200 kgs and thicknesses exceeding 700 mm, a robust but simple steel frame system was designed for primary lateral support. Disc-shaped lateral connections proved efficient and timesaving. The essence of this sculpture will endure as a testament to Women & Humanity and Art & Architecture for generations to enjoy.”
-Natural Stone Institute, StonExpo, Las Vegas