City of Vaughan

Highlights

• The national Consumer Price Index rose 1.8 per cent year-over-year in December, following a 1.9 per cent increase in November.
• The national unemployment rate declined to 6.6 per cent in January, while the employment rate increased to 61.1 per cent.
• National Real Gross Domestic Product (GDP) decreased 0.2 per cent in November, following a 0.3 per cent increase in October 2024.
• The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in retail trade, professional, scientific and technical services and health care and social assistance industries in January.
• City of Vaughan’s Economic Development Department continues to provide up-to-date resources for businesses impacted by United States Tariffs.
• GLS Canada, a European parcel services provider, announced a flagship operation in Vaughan to expand its North American market.
• Hankook & Company announced the acquisition of Hanon Systems, a global automotive parts manufacturer with facilities in Vaughan.

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SELECT Economic Indicators

The national Consumer Price Index rose 1.8 per cent year-over-year in December, following a 1.9 per cent increase in November.

The national Consumer Price Index (CPI) rose 1.8 per cent year-over-year in December, a slight decrease from the 1.9 per cent rise observed in November. This deceleration in price growth was largely due to restaurant food and store-bought alcoholic beverages purchases. In Ontario, the CPI rose 1.7 per cent year-over-year in December, down from a 1.8 per cent increase in November. Despite the temporary tax break in December, slowing price growth impacts from inflation and tariff changes will continue to be observed ahead of March interest rate decisions.

In December, Canadians experienced a decline in prices for certain goods impacted by the temporary GST/HST break enacted on December 14, 2024. Notably, food purchased from restaurants saw a year-over-year decline of 1.6 per cent, marking its first annual decrease and largest monthly decline (-4.5 per cent). Similarly, on a year-over-year basis, prices fell for alcoholic beverages purchased from stores (-1.3 per cent), toys, games and hobby supplies excluding video games (-7.2 per cent) and children’s clothing (-10.6 per cent).

Despite a similarly slower rate of increase over the past few months, shelter prices have continued to rise. Year-over-year, rent increased by 4.5 per cent in December, following a 4.6 per cent rise in November. Rising shelter costs continue to impact Canadians, with rent increasing by 22.1 per cent since December 2021.

Gasoline prices experienced a significant year-over-year increase in December (+3.5 per cent), contrasting with marginal declines in November (-0.5 per cent), largely due to base-year effects. In comparison, gasoline prices declined 4.4 per cent month-over-month in December 2023.

The national unemployment rate declined to 6.6 per cent in January, while the employment rate increased to 61.1 per cent.

The national unemployment rate saw a marginal decline of 0.1 percentage points to 6.6 per cent in January, marking its second consecutive month of decline. Meanwhile, the employment rate rose to 61.1 per cent, a slight increase from 60.8 per cent in December. Ontario’s unemployment rate increased marginally to 7.6 per cent, up from 7.5 per cent in December. In the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – the unemployment rate rose to 8.7 per cent, compared to 8.5 per cent in December.

Employment increased by 76,000 (+0.4 per cent) in January, continuing the upward trend observed over the past few months. By province, employment rose the most in Ontario (+39,000 +0.5 per cent), British Columbia (+23,000; +0.8 per cent), and New Brunswick (+2,900; +0.7 per cent).

In January, employment gains were recorded in manufacturing (+33,000; +1.8 per cent), professional, scientific and technical services (+22,000; +1.1 per cent), and construction (+19,000; +1.2 per cent). Despite recent gains over the past two months, overall employment in the manufacturing sector showed minimal change year-over-year in January.

Automotive manufacturing remained highly susceptible to changes in tariffs and foreign demand, with an estimated 68.3 per cent of the subsector dependent on United States demand due to integrated supply chains. The Toronto economic region – which includes Vaughan – accounts for 27.7 per cent of all auto workers.

Conversely, food manufacturing was found to be the most resilient to changes in foreign demand, with only 28.8 per cent of jobs dependent on United States demand for Canadian exports. In January, food manufacturing recorded the highest employment gains, accounting for 16.4 per cent of all manufacturing employment. Vaughan is a 20-minute drive from the Ontario Food Terminal, providing unparalleled access to Canada’s largest wholesale fruit and produce terminal and the third largest in North America.

Across age groups, employment rose predominantly for youth aged 15 to 24 (+31,000; +1.1 per cent), core-aged women (+36,000; +0.5 per cent) and core-aged men (+28,000; +0.4 per cent). Youth employment reached a 54.5 per cent employment rate in January, the first increase for this age group since April 2024. Similarly, employment for core-aged women rose 0.6 percentage points to 80.4 per cent, the first increase since August 2024. For core-aged men, January marked the third consecutive month of employment growth, cumulatively increasing 1.3 per cent since October 2024.

Average hourly wages among employees were up 3.5 per cent (up $1.23) to $35.99 year-over-year in January, compared to a growth rate of 4.0 per cent in December and 4.1 per cent in November (not seasonally adjusted).

National Real Gross Domestic Product (GDP) decreased 0.2 per cent in November, following a 0.3 per cent increase in October 2024.

The national Real Gross Domestic Product (GDP) decreased 0.2 per cent in November, following a 0.3 per cent increase in October 2024. This decline marks the largest monthly contraction since December 2023. Growth in construction and real estate and rental and leasing was offset by contractions in goods-producing industries (-0.6 per cent), with mining, quarrying, and oil and gas extraction and utilities driving most of the decline.

After five consecutive months of growth, services-producing industries saw a marginal decline of 0.1 per cent in November. Transportation and warehousing largely contributed to this decline, with work stoppages reflecting the contraction. The postal service worker strike and labour actions along Port of Montréal and Vancouver in November impacted activity in the postal service (-20.3 per cent), rail (-3.0 per cent) and water (-4.6 per cent) transportation subsectors. Support activities for transportation (-0.9 per cent) and truck transportation (-0.8 per cent) also declined in November due to reduced cargo movements in and out of Canada’s ports. Meanwhile, couriers and messengers rose 2.4 per cent, in part due to consumers and businesses turning to alternative carriers to fulfill shipping needs.

The construction sector expanded by 0.7 per cent in November, marking its fourth consecutive month of growth. This upward trend was largely driven by increased activity in residential and non-residential building construction. The construction of single-family dwellings, industrial, and public buildings led to a 1.8 per cent increase in residential building construction and a 1.3 per cent increase in non-residential building construction.

Similarly, real estate and rental and leasing increased 0.3 per cent in November, recording its seventh consecutive month of growth. A rise in home sales in Ontario, Quebec, and British Columbia boosted activity for real estate agents and brokerage offices by 3.4 per cent.

Amongst other sectors with a recorded decline in November, mining, quarrying, and oil and gas extraction contracted by 1.6 per cent, following a 2.2 per cent increase in October. The utilities sector declined by 3.6 per cent, largely due to a 4.4 per cent decline in electric power generation, transmission and distribution. This coincided with lower heating demand from milder weather and reduced electricity supply due to drought conditions.

Conversely, several leisure-related industries expanded in November, coinciding with the arrival of Taylor Swift’s Eras Tour in Toronto. The accommodation and food services sector increased by 1.4 per cent, the largest rise since January 2023, with accommodation services up by 2.4 per cent and food services and drinking places up by 1.1 per cent. The arts, entertainment and recreation sector grew by 0.8 per cent, despite weaker activity in spectator sports. Air transportation also increased for the second consecutive month, growing by 1.3 per cent, driven by both domestic and transborder activity.

Advance information indicates that real GDP increased 0.2 per cent in December.  Increases in retail trade, manufacturing and construction were partially offset by decreases in transportation and warehousing, real estate and rental and leasing and wholesale trade.

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LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

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

Economic Development’s Small Business and Entrepreneurship top five industries seeking consultations in January were:

1. Retail trade (20 per cent)
2. Professional, scientific and technical services (14 per cent)
3. Health care and social assistance (12 per cent)
4. Accommodation and food services (12 per cent)
5. Education services (12 per cent)

City of Vaughan’s Economic Development Department continues to provide up-to-date resources for businesses impacted by United States Tariffs.

Tariffs are expected to impact the automotive and food sectors, both of which have significant economic presences in Vaughan. The City hosts one of Canada’s largest automotive clusters, with nearly double the national average concentration of automotive companies. Vaughan is also central to the Toronto Region’s Food & Beverage sector, the largest in North America, with nearly 500 companies in its food and beverage supply chain, employing approximately 22,250 workers—over 10 per cent of Vaughan’s employment base.

Economic Development has undertaken various activities to support the City’s business community and better understand the local impacts of tariffs, including corporate calls with export-focused sectors, toolkits of support programs and working with stakeholders on information-sharing and programming to support impacted local businesses.

The toolkit and up-to-date information provides support to local businesses impacted by current and upcoming changes to tariffs, and is updated by Economic Development on an ongoing basis.

GLS Canada, a European parcel services provider, announced a flagship operation in Vaughan to expand its North American market.

General Logistics Systems (GLS) Canada announced a flagship operation in Vaughan. The lease includes a new 200,000 square foot facility to serve as GLS Canada’s Ontario operations. GLS Canada is one of the largest parcel service providers in Europe, with subsidiaries across Canada and the United States’ West Coast. The state-of-the art hub was chosen in Vaughan due to the City’s access to key markets.

Vaughan’s logistics, distribution and e-commerce sector is one of the largest transportation hubs in Ontario. This sector plays a crucial role in moving goods across North America with direct rail connections to air- and seaports linking Vaughan to the world. The sector is comprised of more than 1,200 companies that employ nearly 32,000 people.

Hankook & Company announced the acquisition of Hanon Systems, a global automotive parts manufacturer with facilities in Vaughan.

Hanon Systems, a global automotive parts supplier with manufacturing facilities in Vaughan, was recently acquired by Hankook & Company Group. Announced in January, the acquisition adds Hanon System as a subsidiary to Hankook & Company Group’s automotive parts solutions supply chain portfolio, which includes batteries, precision parts, tire production, optical micro-electromechanical systems (MEMs) and more.

Vaughan’s automotive sector is comprised of over 660 sector-related businesses employing more than 13,600 people. The City is home to many globally recognized tier-one suppliers, including Magna International, Martinrea, Multimatic, Hanon Systems, Litens Automotive, and Woodbridge Foam Corporation, as well as numerous tier-two and tier-three suppliers. The city’s central location is in direct proximity to assembly plants for giants such as Stellantis, Ford, Honda and Toyota, where businesses can plug into a strong and well-connected supply chain.