Vaughan Economic and Business Update – October 2024

Highlights

Canada’s Consumer Price Index rose 1.6 per cent year-over-year in September following a 2.0 per cent increase in August.
The national unemployment rate fell to 6.5 per cent in September, while the employment rate decreased to 60.7 per cent, down from 60.8 per cent in August.
National Real Gross Domestic Product (GDP) grew 0.2 per cent in July following minimal change in June.
The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in professional, scientific and technical services, retail trade, and arts, entertainment and recreation, and information and cultural industries in September.
Five Vaughan-based companies amongst Globe and Mail’s Top Growing Companies of 2024 in Canada, including Catanzaro Mechanical, Unilux HVAC Industries Inc, Amar Group, Highlight Motor Group, and My Baskets.
FGF Brands, a Vaughan-based food manufacturer, was awarded Best Workplace Culture by the 2024 Canadian HR Awards.
Cardinal Health, a global health tech manufacturer with head offices in Vaughan, ranked 17th on TIME’s list of World’s Best Companies of 2024.

Select Economic Indicators

The Consumer Price Index rose 1.6 per cent year-over-year in September following a 2.0 per cent increase in August.

The national Consumer Price Index (CPI) rose 1.6 per cent year-over-year in September compared to the previous year, following a 2.0 per cent rise in August. This marked the lowest annual price increase since February 2021, with prices for gasoline as the main contributor. In Ontario, the CPI rose 1.9 per cent year-over-year in September, down from a 2.1 per cent increase in August. Canadians continue to feel the impact of higher price levels for day-to-day basics such as rent and food, which increased during that same 3-year period.

Shelter prices rose at a slower rate in September (+8.2 per cent) than in August (+8.9 per cent). Rent price growth slowed the most in Newfoundland and Labrador (+5.1 per cent), New Brunswick (+10.1 per cent), and British Columbia (7.3 per cent).

Prices for food purchased from stores rose 2.4 per cent in September, making it the second consecutive month that grocery prices increased at a faster pace than headline inflation. Fresh or frozen beef, edible fats and oils, and eggs saw sustained elevation and increase in prices. Additionally, prices for food purchased from restaurants rose at a slightly faster pace in September compared with August.

Gasoline prices fell at a faster pace in September (-10.7 per cent) when compared to August (-5.1 per cent). Price deceleration was due part to increasing concerns over weaker economic growth impacting crude oil prices and lower costs with switching to winter blends.

The national unemployment rate fell to 6.5 per cent in September, while the employment rate decreased to 60.7 per cent.

The national unemployment rate fell to 6.5 per cent in September, while the employment rate decreased to 60.7 per cent, down from 60.8 per cent in August. Ontario’s unemployment rate decreased 0.2 per cent in September to 6.9 per cent, while unemployment in the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – fell to 7.7 per cent.

Employment in September saw an increase in full-time work (+112,000, +0.7 per cent), however this increase was partially offset by a decline in part-time work (-65,000, -1.7 per cent). The employment rate in September rose 0.2 per cent, following four consecutive months of decline in the national employment rate.

Employment increased in education services (+27,000, +1.7 per cent), healthcare and social assistance (+25,000, +0.9 per cent), and finance, insurance, real estate, rental and leasing (+11,000, +0.8 per cent) in August. Over the same period, employment decreases were noted in other services (-19,000, -2.3 per cent), professional, scientific and technical services (-16,000, -0.8 per cent), utilities (-6,800, -4.5 per cent), and natural resources (-6,500, -1.8 per cent).

Recent data demonstrates that youth aged 15 to 24 (+33,000, +1.2 per cent) and women aged 25 to 64 (+21,000, +0.3 per cent) saw the most employment growth. While the youth employment rate saw minimal changes at 54.0 per cent in September, this age group saw a 3.5 percentage point decrease on a year-over-year basis. Employment among core-aged women, aged 25 to 64 also saw an increase (+21,000, +0.3 per cent).

Average hourly wages among employees increased 4.6 per cent (up $1.58 to $35.59) year-over-year in September, following a growth of 5.0 per cent in August (not seasonally adjusted).

National Real Gross Domestic Product (GDP) grew 0.2 per cent in July following minimal change in June.

The national Real Gross Domestic Product (GDP) expanded by 0.2 per cent in July, following minimal change in June. The retail trade sector was the primary driver of this growth in July and the sector’s largest monthly growth rate since January 2023.

In July, the manufacturing sector posted a 0.3 per cent increase, partially offsetting the decline recorded in June. The chemical manufacturing subsector contributed the most growth within the non-durable goods sub sector. Food manufacturing rose 1.2 per cent in July, following two months of declines, with the grain and oilseed milling contributing the most to the increase in the subsector at 9.0 per cent.

The construction sector contracted 0.4 per cent in July. This marks the sector’s second consecutive contraction, with most subsectors posting decreases. Non-residential building construction posted a 1.7 per cent decrease in July. This is the sector’s third decline in four months and the largest contributor to the sector’s decline in July, with industrial and commercial building construction driving the decrease.

Advance information indicates that real GDP was essentially unchanged in August. Increases in oil and gas extraction and the public sector were offset by decreases in manufacturing and transportation and warehousing.

LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in professional, scientific and technical services, retail trade, and information and cultural industries in September.

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

Professional, scientific and technical services (21 per cent)
Retail trade and other services(15 per cent)
Information and cultural industries (11 per cent)
Accommodation and food services (9 per cent)
Arts entertainment and recreation (7 per cent)

Vaughan B2B: Industrial Tour brought together over 65 professionals and nearly 20 businesses representing 2,000 employees.

September saw the success of the Vaughan B2B: Industrial Tour, hosted by Economic Development (ED) in partnership with Trillium Network for Advanced Manufacturing. The event brought together over 65 professionals and nearly 20 businesses representing 2,000 employees.

Aimed at promoting learning, networking, and business opportunities for companies in Vaughan, participants were matched to tour and showcase each other’s facilities. By pairing companies with aligned interests and needs, Economic Development enabled valuable exchanges regarding operational best practices, policies, and business challenges.

Five Vaughan-based companies amongst Globe and Mail’s Top Growing Companies of 2024 in Canada.

Catanzaro Mechanical, Unilux HVAC Industries Inc, Amar Group, Highlight Motor Group, and My Baskets were among the 416 companies listed in Globe and Mail’s Top Growing Companies of 2024 in Canada. The Vaughan-based companies contribute to a range of sectors, from mechanical contracting and engineering, to transportation, warehousing and distribution, to corporate gift baskets.

Globe and Mail’s national ranking was launched in 2019 to allow businesses with proven revenue growth over a three-year period to be considered for the ranking. In order to qualify as one of the top growing companies, businesses needed to be Canadian-run and have at least $2 million annual sales in its most recent fiscal year.

FGF Brands was awarded Best Workplace Culture by the 2024 Canadian HR Awards.

FGF Brands, a Vaughan-based food manufacturer, was recently named an Excellence Awardee for Best Workplace Culture by the 2024 Canadian HR Awards. FGF Brands has facilities across Canada and the USA, including multiple Vaughan-based facilities, and specializes in baked goods for North America’s most trusted brands, including ACE Bakery and Stonefire.

Vaughan plays a central role in York Region’s agri-food sector – as the fourth largest hub in Canada – supporting 49,000 jobs regionally. Companies like FGF Brands get to tap into the Ontario Food Terminal, a 20-minute drive from Vaughan and Canada’s largest wholesale fruit and produce terminal.

Canadian HR Awards is organized by Human Resources Director (HRD) Canada and is a leading publication highlighting human resources-related innovations and trends, as well as an organizer bringing together industrial leaders through conferences, industry summits, and award ceremonies. HRD Canada, through the Canadian HR Awards, has recognized professionals, teams, and employers for human resources at the national level for 11 years.

Cardinal Health ranked 17th on TIME’s list of World’s Best Companies of 2024.

Cardinal Health is a leading distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for healthcare facilities. With its Canadian head office in Vaughan, Cardinal Health has contributed to the growing healthcare, health tech and life sciences sector in the City.

TIME and Statista selected 1,000 of the World’s Best Companies of 2024 evaluated based on a combination of employee satisfaction surveys, revenue growth, and environmental, social, and corporate governance (ESG) metrics. As the 17^th on this list, Cardinal Health exemplified high ratings in investing in employee satisfaction.

Vaughan is creating a strong business ecosystem for healthcare, health tech and life sciences sectors with assets including:

Cortellucci Vaughan Hospital – Canada’s first smart hospital
York University School of Medicine opening in 2028
LTC ventureLAB Hardware Catalyst Initiative for MedTech
More than 350 life sciences and health-tech companies in York Region