Toronto Construction and Home Services Business Licenses: 2005 – 2024 Trends & Labour Market Implications
This group of permits includes businesses involved in construction, home improvement, and repair services, such as plumbing, heating, driveway paving, insulation, and building renovations. The construction & home services sector in Toronto has seen a steady decline in business licenses since 2017, with 2024 marking one of the lowest issuance levels in nearly two decades.
It is no secret that Toronto is facing a cooling real estate market leading to fewer new construction projects and lower demand for home renovations. However, some industry experts are suggesting that the decline in permits is due to contractors retiring and is actually due to a shortage of skilled trades persons willing to start their own company.
2024 Continuing Decline
- Sharp Decline in Active Licenses – The total number of businesses in this sector has dropped significantly, reflecting economic pressures, rising costs, and potential skill shortages.
- More Business Closures than New Entries – The balance between licenses added (new businesses) and removed (closures) has tilted toward exits, suggesting reduced business viability.
Labour Market Implications for 2025
- Fewer Small Businesses → Industry Consolidation – Larger firms may dominate, limiting opportunities for independent contractors.
- Skilled Trades – if businesses continue closing there is likely to be a surplus of skilled trades persons.
Conclusion
The downturn in business permits for construction and home services parallels the decline in Toronto’s residential and commercial construction sector. The construction sector’s dramatic downturn this spring is likely to continue through much of 2025 raises concerns about future labour surpluses which runs against the long-standing prediction of labour shortages.
Toronto Food and Hospitality Business Licenses: 2005 – 2024 Trends & Labour Market Implications
Businesses in this category operate restaurants, cafés, food trucks, take-out services, and short-term rental accommodations, contributing to the city’s vibrant food and hospitality scene. The Food and Hospitality sector in Toronto experienced a major rebound in 2024, following the steep decline during the pandemic. The latest data shows a record number of new business licenses, signalling strong investor confidence and job growth. However, labour shortages remain a critical challenge, as many former workers have left the industry.
2024 Business License Boom
Highest number of new licenses in nearly two decades, showing strong recovery and business expansion. Fewer closures, meaning more businesses are surviving compared to previous years. Rapid growth in restaurants, cafes, and bars, leading to increased hiring across the sector.
2025 Labour Market Implication:
With more businesses opening than closing, demand for hospitality workers is surging, creating job opportunities but also staffing challenges forcing businesses to compete for workers and raise wages. The sector’s success will depend on workforce retention strategies and policy support to sustain growth.
Conclusion
Toronto’s Food and Hospitality sector rebounded strongly in 2024, but staffing shortages remain a major issue. The rapid increase in new businesses suggests job opportunities are plentiful, but employers will need to adapt hiring strategies, increase wages, and find new ways to attract workers.
Toronto Retail and Sales Business Licenses: 2005 – 2024 Trends and Labour Market Implications
Businesses in this category include retail establishments that sell goods such as general retail, second-hand items, precious metals, pets, and vapour products, as well as auctioneers and bill distributors. Toronto’s Retail and Sales sector is seeing a strong recovery in 2024, with the highest number of new business licenses in over a decade. After years of decline, the industry is experiencing renewed growth, but challenges remain, including shifting consumer habits.
2024 Business License Growth
Total active licenses are rising, reversing the decline seen from 2016 to 2021. More new businesses are opening, with the highest number of added licenses since 2010. Business closures have stabilized, meaning fewer retailers are shutting down.
2025 Labour Market Implications
A resurgence in new retail businesses suggests more hiring in sales, customer service, and retail management. However, job stability and wages remain key concerns in a sector that has seen major shifts in recent years.
Conclusion
Toronto’s Retail and Sales permits grew in 2024, with a surge in new businesses. However, labour shortages, high turnover, and shifting consumer habits mean the industry must continue evolving including digital sales mixed with bricks and mortar operations to maintain growth.
Toronto Entertainment and Recreation Business Licenses: 2005 – 2024 Trends and Labour Market Implications
This category covers businesses that provide recreational and entertainment services, including nightclubs, amusement establishments, theatres, and pool halls. Toronto’s Entertainment and Recreation sector has been in steady decline for nearly two decades, but 2024 shows early signs of stabilization and potential recovery. While the industry faced significant closures, particularly in 2020-2022, recent increases in new licenses suggest renewed interest and growth opportunities.
2024 Business License Stabilization
Total active licenses remain low but are no longer declining, marking a potential turning point. More businesses are opening, with added licenses reaching their highest level since 2016. Closures have slowed, helping stabilize the industry.
2025 Labour Market Implications
The halt in business decline suggests a more stable job market, with potential hiring increases in event management, recreation, and entertainment services.
Conclusion
Toronto’s Entertainment and Recreation sector has showen early signs of recovery in 2024, with new businesses emerging and job opportunities growing. However, high business costs, unstable employment, and labour shortages remain challenges. The industry’s long-term success will depend on policy support and sustained investment in arts, culture, and recreation.
Toronto Transportation and Vehicle Services Business Licenses: 2005 – 2024 Trends & Labour Market Implications
This category regulates businesses offering transportation and vehicle-related services, including taxis, limousines, tow trucks, auto service stations, and rental vehicle operators. Toronto’s Transportation and Vehicle Services sector has been in decline since 2017, with a sharp drop in total active licenses. The sector, has faced major disruptions due to industry shifts (e.g. ride share services), technological advancements, and regulatory changes. In 2024, the rate of decline has slowed, but the sector remains significantly smaller than it was a decade ago.
2024 Business License Stabilization
Total active licenses continue to decline but at a slower rate than in previous years. New business openings remain steady, but closures outpace additions, preventing full recovery. Taxi and limousine services remain in long-term decline, while auto service stations and towing businesses remain more stable.
2025 Labour Market Implication:
Job opportunities in traditional taxi and limousine services are shrinking, while auto repair and tow truck services remain steady. The shift toward ride-sharing and digital vehicle services continues to reshape employment in the sector. An examination of more specific permits indicate that workers in traditional driving services (e.g., taxis, limousines) face fewer job opportunities, while mechanics, tow truck operators, and vehicle service workers remain in demand.
Conclusion
Toronto’s Transportation and Vehicle Services sector continues to shrink in 2024, largely due to taxi industry disruptions and regulatory changes. While auto repair and towing remain stable, skilled labour shortages persist. The future of the sector depends on policy adaptation, workforce training, and a balance between ride-sharing and traditional transport services.
Toronto Personal and Health Services Business Licenses: 2005 – 2024 Trends and Labour Market Implications
These permits cover businesses that provide personal care and wellness services, such as holistic centers, spas, laundries, and bathhouses. Toronto’s Personal & Health Services sector has bounced back strongly in 2024, following a dip during the pandemic years (2020-2021). This sector, is showing continued growth, with new business openings surpassing closures.
2024 Business License Growth
Total active licenses have reached their highest level in nearly a decade, signalling strong demand. A surge in new businesses, particularly in health and wellness services, has driven sector growth. Closures remain stable, meaning businesses are more resilient compared to previous years.
2025 Labour Market Implication:
More businesses mean more job opportunities in personal care, holistic health, and wellness industries, supporting employment in a sector with growing consumer demand.
Conclusion
Toronto’s Personal and Health Services sector thrived in 2024, with record business openings and strong job opportunities. However, labour shortages in skilled roles remain a challenge. Continued investment in training, licensing reform, and small business support will be key to maintaining growth in this expanding industry.
