Payroll employment in the Canadian manufacturing sector stood at just over 1.5 million people in December 2025, down 40,600 from December 2024 (seasonally adjusted). The decline occurred as the sector faced tariffs on some exports to the United States and amid a broader slowdown in the Canadian economy.
Losses across the board in non-durable goods manufacturing
The 257,900 employees on food manufacturing payrolls in December 2025 were down 5,000 from a year earlier. That subsector continued to account for the largest share of the 633,500 employees across all subsectors in non-durable goods manufacturing, which lost 17,100 employees.
In December 2025, there were 96,000 people (-2,700) employed in plastics and rubber products manufacturing and 92,404 (-4,200) in chemical manufacturing, both down from a year earlier.
Slide in durable goods manufacturing employment led by losses in transportation equipment and machinery manufacturing
In December 2025, there were 889,900 payroll employees in durable goods manufacturing, comprising 10 subsectors, such as wood product, primary metal, fabricated metal product, machinery, and transportation equipment manufacturing. This number was down by 23,500 from a year earlier, as tariff-exposed subsectors took a hit.
Transportation equipment manufacturing accounted for the highest proportion of payroll employment in durable goods manufacturing in December 2024. Despite a decrease of 9,300 jobs to 191,900, this subsector maintained its leading position a year later.
Over the same period, losses were less pronounced (-3,500) in fabricated metal product manufacturing, which remained in second position, at 161,200. Machinery manufacturing employment declined by 3,600 jobs to stand at 138,500.
Losses in Ontario, Quebec and British Columbia drive nationwide decline
The manufacturing sector in Ontario employed 656,700 people in December, down by 27,200 from a year earlier, mostly in durable goods manufacturing.
Significant losses in Quebec (-7,000 to 429,500) and British Columbia (-2,700 to 144,000) also contributed to the payroll employment decline, which happened in every province except for Prince Edward Island and Saskatchewan, both of which recorded little change.
Multiple jobholders and union coverage hold steady
In 2025, 60,000 workers held more than one job while being primarily employed in manufacturing, representing 3.3% of all people employed in manufacturing. This number was little changed in 2025, following a decline in 2024 (-6,200).
More than one in five employees (21.6%) in the sector were members of a union or covered by a collective agreement in 2025, unchanged from 2024 (21.6%). Workers in non-durable goods manufacturing subsectors (23.7%) were more likely to be unionized than those in durable goods manufacturing subsectors (20.2%).
Other data show a slide in manufacturing sales and US exports
Other economic data suggest the sector faced ongoing pressure in 2025.
Manufacturing output fell by 2.6%, making it the largest contributor to the decline in Canada’s real gross domestic product and marking the sector’s third consecutive annual drop.
Total manufacturing sales decreased 0.4% from 2024 to $848.7 billion in 2025. The decline was driven mainly by lower sales in the petroleum and coal product (-7.1%) and chemical (-4.9%) manufacturing subsectors.
The value of Canada’s exports decreased 0.2% in 2025, with 7 of 11 product categories leading the decline—these included energy products; forestry products and building and packaging materials; and basic and industrial chemical, plastic and rubber products. The value of all exports to the United States decreased 5.8%.
Contact information
For more information, contact the Statistical Information Service (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).