Canada’s automotive sector is feeling the pinch from a shrinking economy and an unresolved trade conflict, with employment slipping in three of five sub-sectors.
Combined employment in the automotive industry and related sectors fell 1.1 per cent from June 2024 to June 2025, landing at 611,900 jobs, according to DesRosiers Automotive Consultants.
The steepest decline came in motor vehicle parts and accessories manufacturing, which dropped 6.2 per cent year-over-year, bringing employment close to levels seen in June 2020 during the pandemic. Metalworking machinery manufacturing saw an even sharper fall of 10.3 per cent and motor vehicle manufacturing was down 1.7 per cent
The aftermarket wasn’t spared either as automotive parts and accessories stores slipped 1.2 per cent.
“The longer this trade dispute continues, the longer employment in the automotive industry will be challenged,” said Andrew King, managing partner at DesRosiers. “Manufacturing has taken a particularly heavy hit as expected with the automotive sector still waiting for a clear path forward in the trade conflict.”
Not all segments are struggling. The other area of the aftermarket, automotive repair and maintenance led the sector with 1.2 per cent growth, followed by dealers at 0.9 per cent growth.
The consultancy warned that without a resolution to the trade dispute, manufacturing employment could face further pressure in the months ahead.
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