Industries with the Highest Labor Costs in Canada in 2026

• 1. IT Consulting in Canada

  Labor Costs for 2026: $52.2B

  The rapid pace of technological change propelled the IT Consulting industry in Canada, with the prevalence of cloud-based services, mobile apps and other cutting-edge software fueling spending across the economy. The advent of artificial intelligence (AI) technology joins the long list of cutting-edge trends fueling need for IT consultants across various sectors. The Canadian government is simultaneously bolstering the industry with its large-scale investments, announcing a $2.0 billion inves...

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• 2. Commercial Banking in Canada

  Labor Costs for 2026: $46.5B

  The high interest rate environment experienced over the five years to 2025, along with overall economic growth, has benefitted the Commercial Banking industry in Canada. Banks have done an exceptional job diversifying revenue streams, due to higher interest rates and despite 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 var...

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• 3. Hospitals in Canada

  Labor Costs for 2026: $44.4B

  Hospitals, serving as the primary providers of specialized and emergency medical services, are the most significant portion of health care spending in 2024, according to the Canadian Institute for Health Information (CIHI). Hospitals treat patients regardless of economic circumstances, but income growth and universal insurance coverage have made elective care more accessible to a broader population. While the pandemic's sudden impact left hospitals to face unprecedented challenges to finances...

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• 4. Colleges & Universities in Canada

  Labor Costs for 2026: $24.5B

  Colleges and universities in Canada have seen significant shifts in funding sources in recent years. While federal and provincial government support continues to make up nearly half their revenue, the federal government upped its higher education spending by 22.4% from 2019 to 2024, especially benefiting universities' research and development initiatives. This federal support helped offset inconsistent provincial funding, ranging from lacklustre to solid between regions. Ontario, home to over...

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• 5. Primary Care Doctors in Canada

  Labor Costs for 2026: $23.1B

  Demographic trends drive the rising demand for primary care doctor services. The growing older adult population’s expanding medical needs are increasing the number of people seeking medical care. General practitioners (GPs) and family physicians (FPs) remain the primary point of contact for older adults, coordinating care for multiple conditions and navigating specialist services. Additional demand, driven by a surge in immigration and the influx of temporary residents, has also increased the...

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