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City of Vaughan

Vaughan Economic and Business Update – August 2024

Highlights

  • The Consumer Price Index rose 2.7 per cent year-over-year in June following a 2.9 per cent increase in May.
  • The national unemployment rate was unchanged at 6.4 per cent in July, while the employment fell 0.2 per centage points to 60.9 per cent.
  • The national Real Gross Domestic Product (GDP) grew 0.2 per cent in May following a 0.4 per cent increase in April.
  • The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in retail trade, health care and social assistance, professional scientific and technical services in July.
  • Vaughan-based QTK Fine Cabinetry celebrates 50 years of doing business.
  • Vaughan-based WaterPuris was selected to advance to the semi-finals in federal funding initiative to tackle methane emissions from Canadian cattle herds.

SELECT Economic Indicators

The Consumer Price Index rose 2.7 per cent year-over-year in June following a 2.9 per cent increase in May.

The national Consumer Price Index (CPI) rose 2.7 per cent year-over-year in June following a 2.9 per cent increase in May. In Ontario, the CPI rose 3.0 per cent year-over-year in June after a 3.0 per cent year-over-year increase in May.

Nationally, grocery prices rose 2.1 per cent in June compared to a 1.5 per cent increase in May. Price growth in June was attributed primarily to dairy products (+2.0 per cent), fresh vegetables (+3.8 per cent), non-alcoholic beverages (+5.6 per cent), as well as preserved fruit and fruit preparations (+9.5 per cent).

In June, prices for durable goods fell 1.8 per cent year-over-year. Passenger vehicle purchases contributed the most to the decrease in June, falling 0.4 per cent year-over-year. This was driven primarily by a reduction in prices of used vehicles (-4.5 per cent) caused by improved inventory levels.

Gasoline prices rose at a slower pace in June (0.4 per cent) compared with May (5.6 per cent). The decline was due in part to an announcement from the Organization of the Petroleum Exporting Countries (OPEC) to gradually phase out voluntary production cuts and plant shutdowns for spring maintenance.

The national unemployment rate remained unchanged at 6.4 per cent in July, while the employment rate fell 0.2 percentage points to 60.9 per cent.

The national unemployment rate was unchanged at 6.4 per cent, while the employment rate fell 0.2 percentage points to 60.9 per cent in July. Ontario’s unemployment rate decreased 0.3 per cent in July to 6.7 per cent, while unemployment in the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – decreased 0.1 per cent to 7.7 per cent.

A decrease in employment was seen in the wholesale and retail trade (-44,000; -1.5 per cent) as well as in finance, insurance, real estate, rental and leasing (-15,000; -1.0 per cent) in July. Employment increases in July were noted for the following sectors: public administration (+20,000; +1.6 per cent), transportation and warehousing (+15,000; +1.4 per cent) and utilities (+6,200; +4.2 per cent).

Private sector employment fell by 0.3 per cent (-42,000) in July following two months of little change, while public sector employment rose 0.9 per cent (+41,000) in July. Public sector employment gains over the last year have been led by increases in health care and social assistance (+87,000; +6.9 per cent), public administration (+57,000; +4.8 per cent) and educational services (+33,000; +3.3 per cent).

The unemployment rate among recent immigrants has risen in past months due to barriers integrating into the labour market, educational credentials and domestic work experience. From July 2023 to July 2024 the unemployment rate of recent immigrants rose 3.1 percentage points to 12.6 per cent.

Despite the national unemployment remaining unchanged in July, when adjusted for comparison to the United States, the unemployment rate in Canada for July was 1.1 percentage points higher than in the US. When compared with data 12 months earlier, the unemployment rate increased 0.8 percentage points in both Canada and the US. And while the employment rate has trended down in both countries over the past 12 months, the decline has been larger in Canada, highlighting a greater upward trend in unemployment.

Average hourly wages among employees increased 5.2 per cent (up $1.73 to $34.97) on a year-over-year basis in July, following growth of 5.4 per cent in June (not seasonally adjusted).

The national Real Gross Domestic Product (GDP) grew 0.2 per cent in May following a 0.4 per cent increase in April.

The national Real Gross Domestic Product (GDP) grew 0.2 per cent in May, following a 0.3 per cent increase in April. Goods-producing industries were the main contributors to May’s GDP growth, increasing 0.4 per cent.

In May, the manufacturing sector posted its largest monthly increase since January 2023 (+1.0 per cent) following increases for two previous months. Non-durable goods manufacturing recorded its largest increase since November 2023 (+1.4 per cent), attributing petroleum and coal product manufacturing to most of this growth. Rebounds in non-durable goods manufacturing came after many refineries across Canada completed maintenance in April. Durable goods manufacturing also expanded in May (+0.7 per cent), with 6 of 10 subsectors posting increases. Furniture manufacturing (+4.6 per cent) and miscellaneous manufacturing (-0.4 per cent) contributed the most to May’s increase.

Meanwhile, retail trades contracted 0.9 per cent in May, offsetting the previous months’ increases. The sector was the largest detractor to GDP growth – food and beverage stores ( -2.3 per cent), health and personal care stores (-1.4 per cent) and general merchandise stores (-1.4 per cent) contributed the most to May’s contraction.

Wholesale trade also contracted in May, dropping 0.8 per cent following a 1.4 per cent increase in April. Motor vehicle and motor vehicle part and accessories merchant wholesalers drove May’s decline (-4.0 per cent), likely the result of decreased imports of passenger car and light trucks and overall lower production of motor vehicle.

Advance information indicates that real GDP increased 0.1 per cent in June. Increases in construction, real estate and rental and leasing, and finance and insurance were partially offset by decreases in manufacturing and wholesale trade.

LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in retail trade, health care and social assistance, professional scientific and technical services in July.

Economic Developments Small Business and Entrepreneurship top five industries seeking consultations in July were:

  1. Retail trade (21 per cent)
  2. Health care and social assistance (13 per cent) and professional and Scientific Services (13 per cent)
  3. Other services (10 per cent)
  4. Education services (3 per cent)
  5. Wholesale trade (2 per cent)
Vaughan-based QTK Fine Cabinetry celebrates 50 years of doing business.

Vaughan-based QTK Fine Cabinetry recently celebrated its 50th anniversary. The company specializes in the manufacturing of kitchens, vanities and custom millwork that can be found in homes across the Greater Toronto Area. Founded by Tony and Mary Toto in the basement of their home in 1974, the company has grown to produce 2,000 kitchens a year and has become a first choice for residential builders and contractors across the GTA.

Vaughan’s manufacturing cluster is a significant part of the City’s economic base, contributing more than $3.9 billion in economic output and employing more than 31,000 people. Manufacturers in Vaughan have access to a robust network of goods-movement infrastructure positing the City as an attractive destination for advanced manufacturing.

Vaughan-based WaterPuris was selected to advance to the semi-finals in federal funding initiative to tackle methane emissions from Canadian cattle herds.

Vaughan-based WaterPuris was recently selected to move on to the semi-finals of the Agricultural Methane Reduction Challenge, a $12 million fund launched jointly by Impact Canada, a federal government program, and Agriculture and Agri-Food Canada. The fund is seeking innovative solutions to lower methane emissions from Canada’s cattle herds. Out of 86 applicants, WaterPuris is one of 13 semi-finalists that can receive up to $153,846 to move on to the prototype development stage.

WaterPuris,  is a nanotechnology research company, that is developing a nanobubble technology that will be used to track animal health and reduce methane emissions from livestock herds.