Canada’s automotive employment picture was mixed in March, and there are warnings of job losses ahead just as the industry seemed to have recovered from pandemic-related dips.
But so far, parts stores saw a slight decline while the repair and maintenance sector continued its steady climb. New data from DesRosiers Automotive Consultants shows that employment in Canada’s automotive sector edged down 0.2 per cent overall in March 2025 compared to the same month last year. While the overall change was minor, the breakdown by sub-sector showed some notable shifts.
Employment at automotive parts and accessories stores dipped by 0.6 per cent, reflecting a modest pullback in retail staffing, according to DesRosiers. Meanwhile, the motor vehicle parts and accessories manufacturing sector — already under pressure — saw a more significant drop of 2.5 per cent.
On the other hand, the automotive repair and maintenance sector led the industry, posting a 1.7 per cent increase in employment, continuing its trend of consistent growth. New vehicle dealers also saw a 1.4 per cent rise in jobs, buoyed by strong Q1 sales.
Motor vehicle manufacturing employment rose 1.1 per cent, though DesRosiers notes this is in comparison to a particularly weak March 2024, when plant retooling led to an 8.5 per cent year-over-year decline.
The real test for the industry may come in the second quarter, as the effects of the ongoing U.S.-Canada trade tensions begin to take hold. April and May brought troubling signs for the broader economy, it observed, with national unemployment hitting 7 per cent and manufacturing job losses mounting.
“The automotive sector will likely see more job losses in the Q2 data,” said Andrew King, Managing Partner at DAC. “Without a resolution to the trade war soon, at least some of the ground won back post-pandemic will once again be yielded.”
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