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City of Vaughan

Vaughan Economic and Business Update – September 2024

Highlights

  • Canada’s Consumer Price Index rose 2.5 per cent year-over-year in July following a 2.7 per cent increase in June.
  • The national unemployment rate rose to 6.6 per cent in August, while the employment rate decreased to 60.8 per cent.
  • National Real Gross Domestic Product (GDP) grew 0.1 per cent in June following a 0.2 per cent increase in May.
  • The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in professional scientific and technical services-, retail trade-, and arts, entertainment and recreation- based businesses in August.
  • Vaughan-based LIUNA 183 received $26 million in provincial funding to train 50,000 new construction workers.
  • Vaughan has been recognized among York Region’s municipalities and as one of Canada’s top locations to invest.
  • Hanon Systems, a South-Korean automotive parts manufacturer with facilities in Vaughan, was named as a finalist for 2025 PACE awards.

SELECT Economic Indicators

The Consumer Price Index rose 2.5 per cent year-over-year in July following a 2.7 per cent increase in June.

The national Consumer Price Index (CPI) rose 2.5 per cent year-over-year in July following a 2.7 per cent increase in June. In Ontario, the CPI rose 2.7 per cent year-over-year in July after a 3.0 per cent year-over-year increase in June.

Shelter prices rose at a slower rate in July (+5.7 per cent) when compared with June (+6.2 per cent). Downward pressure on shelter costs comes from increased electricity costs and mortgage interest costs. The mortgage interest cost index continued to slow year-over-year, up 21 per cent in July compared with 22.3 per cent in June.

Passenger vehicle prices fell 1.4 per cent year over year in July following a 0.4 per cent decline in June. Slower price growth for passenger vehicles was attributed to the improvement of vehicle inventory when compared to 2023.

Gasoline prices rose at a faster pace in July (+1.9 per cent) when compared to June (+0.4 per cent). Price acceleration was due in part to refinery shutdowns in the midwestern United States.

The national unemployment rate rose to 6.6 per cent in August, while the employment rate decreased to 60.8 per cent.

The national unemployment rate rose to 6.6 per cent in August, while the employment rate decreased to 60.8 per cent. Ontario’s unemployment rate rose 0.4 per cent in August to 7.1 per cent, while unemployment in the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – rose to 8.8 per cent.

Employment in August saw little change, as gains in part-time work (+66,000, +1.8 per cent) were offset by a decline in full-time work (-44,000, -0.3 per cent). The employment rate in August decreased 0.1 per cent which marks the fourth consecutive monthly decline in the national employment rate.

Employment increased in educational services (+27,000, +1.7 per cent), health care and social assistance (+25,000, +0.9 per cent), and finance, insurance, and 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) and utilities (-6,800, -4.5 per cent).

Recent data demonstrates that youth seeking a job this summer had a more difficult time finding employment. The unemployment rate for those 15 to 24 years of age from May to August 2024 was 16.7 per cent, an increase of nearly 4 per cent when compared to 12.9 per cent in 2023. This summer’s rise in youth unemployment marks the highest rate since 2012. More specifically, 22.1 per cent of youth aged 15 to 16 were unemployed, and the unemployment rate of youth aged 17 to 19 was 17.7 per cent.

Average hourly wages among employees increased 5.0 per cent (up $1.69 to $35.16) on a year-over-year basis in August, following growth of 5.2 per cent in July (not seasonally adjusted).

In May, Economic Development hosted the second Talent City Vaughan: Youth Careers Expo in partnership with COSTI Employment Services and Next Steps Employment Centre at Al Palladini Community Centre. The event drew more than 300 participants who established connections with Vaughan employers. Economic Development staff continue to work with the business community to highlight and promote major hiring events and job fairs taking place in Vaughan through the department’s website and LinkedIn channel. Residents looking to work in Vaughan can use Economic Development’s job search tool on vaughanbusiness.ca that provides up-to-date information on available jobs from Vaughan-based employers.

National Real Gross Domestic Product (GDP) grew 0.1 per cent in June following a 0.2 per cent increase in May.

The national Real Gross Domestic Product (GDP) expanded 0.1 per cent in June, following a 0.2 per cent increase in May. Service producing industries increased for the third consecutive month.

In June, the manufacturing sector posted a 1.5 per cent decrease offsetting the previous two months of growth. Both durable and non-durable goods manufacturing contributed to June’s decline. Durable goods manufacturing experienced its largest contraction since April 2021 (-2.4 per cent), all but one subsector posted an increase in August (wood manufacturing, +0.5 per cent).

Wholesale trade decreased for the second consecutive month (-0.7 per cent) with machinery equipment and supplies (-1.1 per cent) and motor vehicle and motor vehicle parts accessories contributing (-2.9 per cent) the most to the sectors decline in June.

The construction sector contracted 0.6 per cent in June. This marks the sector third consecutive contraction, with all subsectors but one posting decreases. Residential building construction posted a 0.3 per cent expansion in June marking the first increase in three months, this increase was driven by apartment building construction.

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 professional, scientific and technical services, retail trade, and arts, entertainment and recreation in August.

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

  1. Professional, scientific and technical services (21 per cent)
  2. Retail Trade (20 per cent)
  3. Arts, entertainment and recreation (11 per cent)
  4. Education services and Health care and social assistance (8 per cent)
  5. Accommodation and Food Services (7 per cent)
Vaughan-based LIUNA 183 received $26 million in provincial funding to train 50,000 new construction workers.

The Province of Ontario through the Skills Development Fund (SDF) capital stream is investing $26 million at LIUNA 183’s skilled trades training campus in Vaughan. The investment will enable LIUNA 183 to train an additional 50,000 construction workers for in-demand construction careers across the Greater Toronto Area (GTA).

Vaughan’s construction and building materials sector is integral to supporting residential, commercial and industrial growth across Ontario and Canada. In 2023 the sector contributed $4 billion in real GDP to Vaughan’s economy.

Vaughan has been recognized among York Region’s municipalities and as one of Canada’s top locations to invest. ranked a top destination to invest in Canada.

In the September issue of Site Selection Magazine, York Region was identified as one of the top Canadian locations to invest. This is York Region’s second year on this list with ranking being based on several factors including amount of corporate investment, job creation and the impact of these investments for business and residents. This recognition highlights York Region as an integral destination in Canada, as well as Vaughan’s importance as a destination of choice within the region.

Site Selection Magazine is a leading business publication covering corporate real estate and economic development. The magazine selects the top 20 regions in Canada for investment on an annual basis.

Hanon Systems, a South-Korean automotive parts manufacturer with facilities in Vaughan, was named a finalist for 2025 PACE awards.

Hanon Systems – which has a manufacturing facility in Vaughan –  has been named a finalist for the 2025 PACE awards. Hanon Systems is a leading global automotive parts supplier. The nomination highlights Hanon’s innovative VR-LED photocatalyst technology used for air disinfection both inside and outside of vehicles. The PACE awards organized by Automotive News a leading US media outlet, recognizes automotive innovation that demonstrates outstanding technological and business achievements within the industry.

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, IAC 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.