Vaughan Economic and Business Update – December 2023
- The Consumer Price Index rose 3.1 per cent year-over-year in October following a 3.8 per cent increase in September.
- The national unemployment rate rose 0.1 per cent to 5.8 per cent in November.
- Real Gross Domestic Product (GDP) increased 0.1 per cent in September, following a 0.0 per cent increase in August.
- The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in accommodation and food services, other services, and professional and technical services in November.
- Vaughan-based manufacturer York Metal Products receives Ontario Automotive Modernization Program funding to modernize operations and increase competitiveness.
- Canadian-owned discount retailer Giant Tiger opens first retail location in Vaughan.
- ‘Canada’s Top Employers of 2024’, distributed in the Globe and Mail, featured 10 Vaughan-based businesses.
SELECT Economic Indicators
The Consumer Price Index rose 3.1 per cent year-over-year in October following a 3.8 per cent increase in September.
The Consumer Price Index (CPI) rose 3.1 per cent year-over-year in October following a 3.8 per cent year-over-year increase in September. The year-over-year deceleration was largely a result of lower gasoline prices (-7.8 per cent) in October. Mortgage interest costs and food purchased from grocery stores continue to be the largest contributors to year-over-year CPI increases In October consumers paid 7.8 per cent less for gasoline in October after a 7.5 per cent increase in September. The decline in gasoline prices was due to lower refining margins which were driven by producers switching to cheaper winter blends of gasoline.
Rent continues to put upward pressure on consumers as rental prices rose at a faster pace year-over-year in October (+8.2 per cent) than in September (+7.3 per cent). The acceleration in rent prices was largely seen in Nova Scotia, Alberta, British Columbia, Quebec and Ontario.
The national unemployment rate rose 0.1 per cent to 5.8 per cent in November.
The national unemployment rate rose 0.1 per cent to 5.8 per cent in November and the employment rate fell 0.1 per cent to 61.8 per cent as growth in population continues to outpace employment growth. Meanwhile, Ontario’s unemployment rate fell 0.1 per cent in November to 6.1 per cent, while unemployment in the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – fell 0.1 per cent as well to 6.6 per cent. Employment gains across Canada in November were concentrated in manufacturing, and construction sectors while decreases were seen in the wholesale, retail trade and sectors.
Unemployment increases since earlier this year have been most pronounced among youth – unemployment for youth in Ontario was 13.3 per cent in November, which has risen 1.1 per cent over the same period last year. In contrast, the unemployment rate for adult men and women rose by 0.4 per cent and 0.1 per cent respectively from November 2022 to November 2023.
Compared to this time last year unemployed people were more likely to have been laid off, reflecting more difficult economic and labour market conditions. At the national level more than two-thirds (68.7 per cent) had been laid off from their previous job compared to 62.6 per cent in November 2023.
On a year-over-year basis, average hourly wages rose 4.8 per cent (+$1.57 to $34.28) in November, similar to the increase recorded in October (not seasonally adjusted).
Real Gross Domestic Product (GDP) increased 0.1 per cent in September, following a 0.0 per cent increase in August.
Real Gross Domestic Product (GDP) increased 0.1 per cent following a 0.0 per cent increase in August. Real GDP measures the inflation-adjusted value of goods and services produced in the economy and is an indicator of economic growth.
The manufacturing sector increased 0.9 per cent in September after contracting for three months in a row. Non-durable goods manufacturing grew 0.8 per cent as food manufacturing, meat product manufacturing, and petroleum and coal manufacturing sub-sectors were responsible for the majority of growth in September. Durable goods manufacturing increased for the first time in four consecutive months largely due to growth in machinery manufacturing and mining manufacturing.
Construction activity continued to grow with a 0.1 per cent expansion in September. Residential building construction increased 3.8 per cent in September and was the largest gain since April 2021. Activity in this sub-sector was seen across multi-unit, single family and home alterations and improvements which all contributed heavily to the sector expansion in September.
Advance information indicates that real GDP increased 0.2 per cent in October. Increases in mining, quarrying, and oil and gas extraction, retail trade, and construction were partially offset by decreases in the wholesale trade sector.
LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES
The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in accommodation and food services, other services, and professional and technical services in November.
ED’s Small Business and Entrepreneurship top five industries seeking consultations in October were:
- Accommodation & Food Services (26 per cent)
- Other Services (19 per cent) and Professional Scientific and Technical Services (19 per cent)
- Arts Entertainment and Recreation (9 per cent) and Construction (9 per cent)
- Retail Trade (6 per cent)
- Wholesale Trade (4 per cent)
Vaughan-based manufacturer York Metal Products receives Ontario Automotive Modernization Program funding to modernize operations and increase competitiveness.
The Ontario Automotive Modernization Program (O-AMP) provides financial support to small and medium sized automotive parts suppliers to adopt the tools, technologies and manufacturing practices needed to scale up, modernize and increase competitiveness. The fourth round of O-AMP funding provided 26 Ontario automotive parts suppliers with over $3.5 million in funding creating 111 new jobs across the province. Vaughan-based manufacturer York Metal Products an advanced manufacturing firm that utilizes cutting-edge technology and processes to produce complex metal fabricated components.
With $4 billion in economic output in 2022 and 42,000 workers, Vaughan has one of the most concentrated advanced manufacturing sectors in the GTA. As one of Canada’s advanced manufacturing hubs, Vaughan is also an integral part of the newly announced Advanced Manufacturing Supercluster, developing next-generation manufacturing capabilities and incorporating technologies, such as advanced robotics and 3D printing. Vaughan’s access to superior end-to-end supply chain solutions, transportation assets and industrial market size makes it a competitive and attractive destination for advanced manufacturing.
Canadian-owned discount retailer Giant Tiger opens first retail location in Vaughan.
Giant Tiger, a leading Canadian-owned family discount store, opened its first retail location in Vaughan at 67 Colossus Drive. The 18,000-square-foot retail store opened on December 2 and is dedicated to meeting the needs of the communities its services by providing a suite of affordable products. The privately held company has over 260 locations across Canada and proudly employs over 10,000 members of Team Tiger.
‘Canada’s Top Employers of 2024’, distributed in the Globe and Mail, featured 10 Vaughan-based businesses.
The recent release of Canada’s Top 100 Employers project included 10 Vaughan-based businesses. Canada’s Top 100 Employers project is a national editorial competition highlighted industry-leading employers that offer exceptional workplaces for their employees which is now in its 24th year. The list of winners is published by MediaCorp and distributed in the Globe and Mail. The below businesses included have a location or are headquartered in Vaughan: