Based on the expert analysis and our database of 480+ CA industries, IBISWorld presents a list of the Biggest Industries by Employment in Canada in 2020
The 10 Biggest Industries by Employment in Canada
1. Hospitals in Canada
Employment number for 2020: 654,971
The Hospitals industry in Canada, which includes medical and surgical hospitals, has exhibited stable growth over the five years to 2020. Canada’s healthcare system is predominately public, with 70.5% of funding coming from the public sector and the remainder from the private sector, according to the “National Health Expenditure Trends, 1975 to 2019” report by the Canadian Institute for Health Information (CIHI). Therefore, the industry is heavily dependent on both federal and provincial funding, which is mostly allocated via global budgets systems, where a fixed payment amount is allocated to a provider to cover operating expenses for a period of… Learn More
2. Full-Service Restaurants in Canada
Employment number for 2020: 557,859
The Full-Service Restaurants industry in Canada has exhibited growth over the five years to 2020, due to rising levels of per capita disposable income during the majority of the period and a growing number of high-income households in Canada. This has generated significant demand for restaurants and other discretionary experiences. At the same time, quick-service restaurants have outperformed full-service restaurants due to their more affordable prices and superior product development, somewhat hindering industry revenue growth. Moreover, many operators have been put under pressure by rising food prices, which have pressured industry profit. Ultimately, industry revenue is estimated to grow at… Learn More
3. Supermarkets & Grocery Stores in Canada
Employment number for 2020: 398,942
The Supermarkets and Grocery Stores industry in Canada has experienced strong growth over the five years to 2020, which can be attributed to an expected spike in revenue in 2020 amid the COVID-19 (coronavirus) pandemic. Between 2015 and 2019, while rising levels of consumer confidence and slight growth in per capita disposable income provided an optimal business environment, the proliferation of supercentres stifled industry revenue as it increased price-based competition and provided customers with a one-stop shopping experience. Many consumers sought cost savings at grocery stores, stocking up on promotional items or trading down to private label brands. In response… Learn More
4. Fast Food Restaurants in Canada
Employment number for 2020: 394,134
The Fast Food Restaurants industry in Canada has expanded over the five years to 2020, despite mounting internal competition and changing consumer tastes. Higher consumer spending and product innovation by fast food restaurants have renewed consumer interest in fast food. Products with higher profit, such as coffee, smoothies and salads, have become more prominent at traditional fast food restaurants, leading to an increase in the average industry profit. Furthermore, meal customization and high-quality ingredients have become increasingly popular in recent years, inducing major players in the industry to reconsider their overall strategy and menu offerings. As a result of these… Learn More
5. Colleges & Universities in Canada
Employment number for 2020: 318,727
The Colleges and Universities industry in Canada has experienced growth over the five years to 2020 despite the declining role of government funding and the spread of COVID-19 (coronavirus) in Canada. During the period, tight budgets have constrained federal and provincial funding for postsecondary education, causing certain institutions to implement hiring and salary freezes to reduce expenses. At the same time, total enrolment has experienced modest growth, and most institutions have also raised tuition rates to offset declines in funding. Overall, industry revenue is estimated to increase an annualized 3.0% to $43.9 billion over the five years to 2020, though… Learn More
6. IT Consulting in Canada
Employment number for 2020: 284,202
The IT Consulting industry in Canada is composed of companies that help private businesses and public sector agencies design, implement and manage information technology (IT) systems. Demand for industry services is positively affected by growth in corporate profit and business sentiment. As these drivers strengthen, companies increase expenditure on industry services. However, since corporate profit levels decreased in recent years, demand for industry services was hindered. In addition, over the five years to 2020, there has been a significant degree of technological change due to the increasing prevalence of cloud-based services, mobile applications and other cutting-edge software. These technological changes… Learn More
7. Commercial Banking in Canada
Employment number for 2020: 281,293
Despite low interest rates and some hiccups in economic growth, the Commercial Banking industry in Canada has expanded over the five years to 2020. Banks have done an exceptional job of diversifying revenue streams and overcoming limits imposed by low interest rates and increasing regulations. The industry primarily generates revenue through interest income sources, such as business loans and mortgages, but it also generates income through noninterest sources, which include fees on a variety of services and commissions. Consequently, industry revenue is expected to grow an annualized 9.4% to $240.2 billion over the five years to 2020 with an increase… Learn More
8. Pharmacies & Drug Stores in Canada
Employment number for 2020: 188,396
Over the five years to 2020, the Pharmacies and Drug Stores industry in Canada has benefited from the fact that pharmaceuticals currently comprise the second-largest health expenditure category in Canada. Although increasing pharmaceutical prices have bolstered industry revenue over the five years to 2020, many provincial drug programs have restricted their prescription prices to cut healthcare costs to consumers, hurting industry operators in the process. For example, many territories have required generic drugs to be marked down by a percentage of the patent drug equivalent, limiting revenue growth and hindering more robust growth regarding industry profitability. British Columbia’s reference-based pricing… Learn More
9. New Car Dealers in Canada
Employment number for 2020: 170,160
Over the five years to 2019, revenue for the Canadian New Car Dealers industry is expected to expand. Demand for automobiles has been driven by healthy economic conditions, such as rising consumer confidence, growing per capita disposable income and low unemployment. Rising disposable income encourages consumers to make big-ticket discretionary purchases such as new vehicles. Additionally, historically low interest rates, as measured by the overnight rate, are expected to stimulate growth. Due to these positive trends, IBISWorld expects industry revenue to rise at an annualized rate of 4.6% over the five years to 2019, totalling $133.2 billion, lifted by an… Learn More
10. Office Staffing & Temp Agencies in Canada
Employment number for 2020: 152,842
The Office Staffing and Temp Agencies industry in Canada has expanded at a slow and steady pace over the five years to 2020. Industry operators supply businesses with workers for a predetermined period to supplement existing full-time staff or increase the workforce in times of increasing demand. The industry’s performance depends on overall economic growth and macroeconomic conditions, and growth of the Canadian economy has been relatively cyclical over the past five years. Between 2015 and 2019, the Canadian economy experienced increasing employment and growth in key markets, but only slight growth in aggregate private investment. As a result, industry… Learn More
