While recent headlines highlight concerns in the Canadian auto industry, such as ongoing tensions between the United States and Canada and Stellantis' announcement to sell its Brampton plant, the overall employment landscape paints a more balanced picture, according to DesRosiers Automotive Consultants in a Wednesday note.
Employment in the Canadian auto sector and related industries grew by 0.5% in June compared to the previous year, totaling 616,700 jobs, said DesRosiers.
The data shows varied results across segments, with auto dealerships and automotive repair and maintenance, which make up nearly half of all auto workers, each experiencing employment growth of 1.6% and 2.5%, respectively, it added.
Motor vehicle manufacturing also experienced a 1.4% increase, although employment remains below pre-pandemic levels.
On the other hand, motor vehicle parts and accessories manufacturing declined by 4.0%.
"It is often forgotten that the majority of auto sector employment in Canada is focused on selling and servicing vehicles," said Andrew King, managing partner at DesRosiers, in the note. "That being said, the manufacturing segments of the industry are a crucial part of Canada's economy and need to be aggressively protected," from US tariffs.