Vaughan Economic and Business Update – August 2025

Highlights

The national Consumer Price Index rose 1.7 per cent year-over-year in July, following a 1.9 per cent increase in June.
The national unemployment rate remained at 6.9 per cent in July, while the employment rate declined 0.2 percentage points to 60.7 per cent.
National Real Gross Domestic Product declined 0.1 per cent in June, the third consecutive month of decline, led by goods-producing industries in all three months.
In July, the Vaughan Business and Entrepreneurship Centre experienced demand for consulting in retail trade, other services and education services.
Vaughan-headquartered GFL Environmental received funding from Next Generation Manufacturing Canada through their Sustainable Manufacturing Challenge.
Recipe Unlimited Corporation, a Vaughan-based full-service restaurant company, acquires Olive Garden Canada and secures exclusive rights to expand the brand nationwide, reinforcing Vaughan’s role as a national hospitality hub.
Minus Waste Solutions, a Vaughan-headquartered company specializing in food and liquid waste recycling and resource recovery, receives a major growth equity investment to scale its sustainable waste recycling operations, advancing Vaughan’s position in clean-tech innovation.

Select Economic Indicators

The national Consumer Price Index rose 1.7 per cent year-over-year in July, following a 1.9 per cent increase in June.

The Consumer Price Index rose 1.7% on a year-over-year basis in July, down from a 1.9 per cent increase in June. Gasoline prices remained stable as consumers continued to pay less at the pump on a year-over-year basis in July (-16.1 per cent), a decline slightly greater than in June (-13.4 per cent). In Ontario, the Consumer Price Index rose 1.6 per cent year-over-year in July, down from a 0.2 per cent decrease in June. The Consumer Price Index increased in July at a slower pace than June in six out of Canada’s ten provinces.

Shelter prices continue to rise at a slightly greater rate year-over-year in July (+3.0 per cent) compared to June (+2.9 per cent). The upward pressure on shelter prices mostly came from the natural gas and rent indexes. The cost of natural gas in Ontario increased by 1.8 per cent year-over-year, following a decline of 14.0 per cent in June.

Prices for food purchased from stores rose 3.4 per cent year over year in July, following a 2.8 per cent increase in June. The faster growth was primarily a result of price increases for confectionery (+11.8 per cent) and coffee (+28.6 per cent). The price increase for these goods is attributed to unfavourable weather conditions in growing regions for the primary ingredients (cocoa and coffee beans) used to produce these products.

The national unemployment rate remained at 6.9 per cent in July, while the employment rate declined 0.2 percentage points to 60.7 per cent.

The national unemployment rate remained at 6.9 per cent in July, while the employment rate declined 0.2 percentage points from June to 60.7 per cent. Employment across Canada fell by 41,000, with youth and young adults (ages 15 – 24) being the most affected, experiencing a decline of 34,000 jobs within this age range in July. Youth continue to face challenging labour market conditions with youth employment at 53.6% in July — the lowest rate since November 1998 (excluding 2020 and 2021 during the COVID-19 pandemic). Employment among the core-aged population (25 to 54 years old) was relatively unchanged in July.

Employment in Ontario was relatively unchanged in July, after increasing by 21,000 (+0.3 per cent) in June. The unemployment rate in Ontario stood at 7.9 per cent in July. The unemployment rate in the Toronto census metropolitan area, which includes Vaughan, stood at 9.0% in July, up 0.3 percentage points from the previous month.

The most significant gains in employment were led by Transportation and Warehousing (+26,100), followed by Educational Services (+22,400). The most significant losses in employment by sector were Information, Culture and Recreation (-29,200), followed by Construction (-21,600).

Of the 1.6 million people who were unemployed in July, 23.8% were in long-term unemployment, meaning they had been continuously searching for work for 27 weeks or more. This was the highest share of long-term unemployment since February 1998 (excluding 2020 and 2021).

National Real Gross Domestic Product declined 0.1 per cent in June, marking the third consecutive month of decline, led by goods-producing industries in all three months.

The national Real Gross Domestic Product declined 0.1 per cent in June for the third consecutive month of decline. Goods-producing industries have declined in all three months. The services sector remained largely unchanged (+0.1 per cent) from the previous month. This is the first occurrence of three consecutive monthly declines since the last three months of 2022.

The manufacturing sector declined by 1.5 per cent in June, after growth of 0.7 per cent in May partially offset April’s 1.8 per cent decline. Trade relations between Canada and the United States continue to impact manufacturing.

Durable goods manufacturing industries dropped in June (-2.1 per cent), down for the second time in three months, as seven out of ten subsectors contracted. Transportation equipment manufacturing contributed the most to this drop (-4.4 per cent). Declines in motor vehicle (-12.6 per cent) and motor vehicle parts manufacturing (-2.7 per cent) coincided with lower exports of passenger cars and light trucks, primarily to the United States. These declines reflect the impact of the tariffs imposed by the United States on several goods imported from Canada, including automobile parts from manufacturers in Vaughan.

Transportation and warehousing dropped 0.3 per cent in June, following a 0.6 per cent growth in May. Rail transportation contracted 2.3 per cent in June, following a 3.1 per cent expansion in May. Metal and mineral carloadings contributed the most to the decline in June, which coincided with a decrease in exports of these products. Automotive carloadings also fell for the third consecutive month in June, coinciding with a decrease in exports of motor vehicles and motor vehicle parts.

LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

In July, the Vaughan Business and Entrepreneurship Centre experienced demand for consulting in retail trade, other services and education services.

In July, Economic Development’s Small Business and Entrepreneurship top five industries seeking consultations were:

Retail trade (44 per cent)

Other services (13 per cent)

Education services (8 per cent)

Professional, scientific and technical services (7 per cent)

Construction and accommodation and food services (6 per cent)

*Other services include: repair centers for motor vehicles, pet care services, funeral, laundry, photo finishing, etc.

Vaughan-headquartered GFL Environmental received funding from Next Generation Manufacturing Canada (NGen) through their Sustainable Manufacturing Challenge.

Vaughan-headquartered GFL Environmental was one of 32 companies funded by Next Generation Manufacturing Canada (NGen) through their Sustainable Manufacturing Challenge. Alongside Cobric Chemicals Inc. of Barrie, Ontario, GFL Environmental received funding for a project related to the manufacturing of zinc from electric arc furnace dust. This funding supports projects that aim to accelerate the application of cleantech and other advanced technologies to improve the environmental sustainability of Canadian manufacturing.

Vaughan’s advanced manufacturing cluster contributed $4.1 billion – equivalent to 15 per cent of Vaughan’s real Gross Domestic Product – in economic output in 2024. The city continues to be a destination for companies to expand, ranking third overall in the country in terms of both the number and value of industrial building permits by the end of 2024.

Recipe Unlimited Corporation, a Vaughan-based full-service restaurant company, acquires Olive Garden Canada and secures exclusive rights to expand the brand nationwide, reinforcing Vaughan’s role as a national hospitality hub.

Recipe Unlimited Corporation, headquartered in Vaughan and recognized as Canada’s largest full-service restaurant company, has announced the acquisition of Olive Garden’s Canadian operations. The deal includes the rights to operate and expand the well-known Italian dining brand across the country, with plans for new restaurant openings in the coming years. From its Vaughan headquarters, Recipe Unlimited oversees a diverse portfolio of beloved brands, and the addition of Olive Garden further underscores the city’s role in driving national restaurant growth, job creation, and investment decisions.

This strategic move strengthens Vaughan’s profile as a hub for hospitality and franchise management. Vaughan’s food industry comprises a robust business-to-consumer element that contributes to the City’s vibrancy and diversity, complementing the promotion and growth of tourism within the City by providing food destinations and amenities attractive to both visitors and residents. Recipe Unlimited’s latest acquisition positions Vaughan at the heart of an expansion that will bring new dining options and economic benefits to communities locally and nationwide.

Minus Waste Solutions, a Vaughan-headquartered company specializing in food and liquid waste recycling and resource recovery, receives a major growth equity investment to scale its sustainable waste recycling operations, advancing Vaughan’s position in clean-tech innovation.

Minus Waste Solutions, a Vaughan-based company specializing in the sustainable recycling of food and liquid waste, has secured a major growth equity investment from the Canada Business Growth Fund (CBGF), a national fund dedicated to scaling mid-market businesses. This capital will enable Minus Waste to rapidly expand its operations, including doubling its fleet size, opening new depackaging and processing facilities, enhancing its technology platforms, and pursuing strategic acquisitions. These expansion plans strengthen Vaughan’s position as a hub for environmental innovation, supporting the circular economy and generating clean-tech solutions and jobs.