Accommodation and Food Services (NAICS 72): Ontario, 2025
Highlights
- There were 420,500 people employed in the accommodation and food services industry in Ontario, comprising 5.2% of the province’s workforce in 2024.
- Employment in the Ontario accommodation and food services industry decreased by 1.2% in 2024.
- Employment is expected to increase over the 2025-2027 forecast period. However, reduced discretionary spending and persistent labour shortages may slow the pace of growth.
About the Sector
Composition and importance of the sector
Accommodation and food services is comprised of two key sub-industries: accommodation services, and food services and drinking places.
In Ontario, this sector employed 420,500 people in 2024. While this only made up 5.2% of the total workforce in Ontario, these workers accounted for more than one-third (36.9%) of employment in the accommodation and food services industry across the country.
The accommodation and food services industry in Ontario produced over $18.4 billion in gross domestic product (GDP) in 2024, contributing 2.1% to the province’s total GDP.
- Between 2023 and 2024, GDP in the industry increased by $143.3 million (+0.8%).
- Between Q2 2024 and Q2 2025, GDP grew by 1.3%.
| Accommodation Services | Food Services and Drinking Places | |
|---|---|---|
| 11% | 89% |
Description of graphic in accessible text
A pie graph that shows the breakdown of accommodation and food services employment by subsector in 2024. Food services and drinking places account for the bulk of employment, at 89%, while accommodation services make up the remaining 11%.
Source: Statistics Canada, Labour Force Survey, Custom Table
Geographical distribution of employment
Across the province in 2024, the economic region (ER) with the highest proportion of workers in the accommodation and food services sector was the Toronto ER, with 43.0% of employment.
Workers in the industry were over-represented in several ERs, including the Hamilton-Niagara Peninsula ER, where 6.9% of total employment was in accommodation and food services, 6.2% for Kingston-Pembroke ER and 6.2% for Windsor-Sarnia ER. In comparison, this sector made up 5.2% of overall employment in Ontario.
| Ottawa | 46,400 | 11.0% |
| Kingston-Pembroke | 14,600 | 3.5% |
| Muskoka-Kawarthas | 9,500 | 2.3% |
| Toronto | 180,800 | 43.0% |
| Kitchener-Waterloo-Barrie | 41,600 | 9.9% |
| Hamilton-Niagara Peninsula | 56,900 | 13.5% |
| London | 23,500 | 5.6% |
| Windsor-Sarnia | 22,200 | 5.3% |
| Stratford-Bruce Peninsula | 9,100 | 2.2% |
| Northeast | 11,400 | 2.7% |
| Northwest | 4,600 | 1.1% |
Source: Statistics Canada, Labour Force Survey, Custom Table
*Note: Totals may not sum due to rounding.
Workforce
Workforce characteristics
- Women accounted for more than half (54.4%) of Ontario’s accommodation and food services workforce in 2024, compared to 47.2% for all industries.
- Youth (aged 15 to 24) comprised 42.5% of workers in the industry, far greater than the 12.6% for the province’s total workforce for all industries in 2024.
- Nearly half (48.2%) of accommodation and food services employees worked part-time in 2024, compared to 17.6% of the overall workforce in the province.
- The industry also had a greater share working in temporary roles (16.0%) compared to Ontario as a whole (9.5%).
- In 2024, the average hourly wage rate in Ontario’s accommodation and food services was $19.18, far below the provincial average of $30.50.
| 65201 Food counter attendants, kitchen helpers and related support occupations | 111,700 | 26.6% |
|---|---|---|
| 65200 Food and beverage servers | 60,600 | 14.4% |
| 63200 Cooks | 46,600 | 11.1% |
| 60030 Restaurant and food service managers | 38,900 | 9.2% |
| 62020 Food service supervisors | 27,600 | 6.6% |
Source: Statistics Canada, Labour Force Survey, Custom Table
*Note: The NOCs listed make up approximately half of those employed in the sector.
Recent History
Labour shortages have been an ongoing issue for the Ontario accommodation and food services sector, and continue to weigh on industry employment. While the sector has made significant strides in recovery from previous lows, job vacancy levels remain elevated. At the start of 2022, the sector had approximately 42,595 unfilled positions, representing a 9.6% job vacancy rate, nearly double the 5.1% job vacancy rate for all industries in Ontario. By 2024, conditions had improved, with vacancies falling to about 15,910 positions and the rate declining to 3.2%, comparable to 2.5% for all industries. However, recent data from the second quarter of 2025 shows the sector facing renewed pressure, with 22,070 unfilled positions and a 4.5% job vacancy rate, well above the provincial rate of 2.8% for all industries. These labour challenges are also reflected in the industry’s employment data; between July 2019 and July 2025, employment fell from 474,100 to 454,100 (-4.2%).
Accommodation services
The hotel occupancy rate in Ontario has remained relatively stable in 2024 (67.8%), similar to 2023 (68.0%). Large-scale events featuring prominent performers have provided a notable boost to bookings and overall accommodation demand in 2024. Following five years of limited development, hotel construction has also gained momentum, with several new hotels opening in 2024, and additional projects planned for 2025. These additions are expected to add approximately 6,000 new hotel rooms across Canada, with 60% of this growth in Ontario.
However, persistent labour shortages have constrained the subsector, with employment declining by 8.5% between July 2019 (63,500) and July 2025 (58,100), in contrast to the 11.0% growth recorded across Ontario’s overall workforce. From a financial perspective, the subsector reached a record-high operating revenue in 2024 ($10.8 billion), with Ontario contributing the largest share (30.2%). The operating profit margin was 19.7% in 2024, a slight decline from 20.4% in 2023 but notably higher than the pre-pandemic level of 15.6% in 2019.
Food services and drinking places
Employment in the subsector benefited from strong growth in temporary immigration in 2022 and 2023, which expanded the available labour pool and helped ease ongoing shortages. In 2024, sales at food services and drinking places in Ontario reached $37.7 billion, up from $36.4 billion in 2023, an increase of 3.6%. As of October 2025, sales had already reached $33.2 billion, compared with $31.2 billion over the same period last year.
While sales have been strong, rising costs have remained a challenge for the industry and broader economy in recent years. Along with increased labour expenses and other operating costs, 53% of restaurants in Canada were operating at a loss or just breaking even in 2024. Additionally, the sector also saw the largest increases in insolvencies with 163 more filings (+22.7%) in 2024 than in 2023. Food prices in stores remained elevated in 2024, albeit increasing at a slower rate than in 2023 (2.2% compared to 7.8%).
| Year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Employment | 100.0 | 100.3 | 100.7 | 101.1 | 106.1 | 104.3 | 78.7 | 83.7 | 90.2 | 97.0 | 95.9 |
| GDP | 100.0 | 103.3 | 105.9 | 106.8 | 110.3 | 114.6 | 69.1 | 80.7 | 114.8 | 122.9 | 123.9 |
| NAICS 721 Operating Margin | 100.0 | 100.0 | 120.0 | 147.3 | 145.5 | 141.8 | 47.3 | 103.6 | 177.3 | 185.5 | 179.1 |
| NAICS 722 Operating Margin | 100.0 | 103.0 | 93.9 | 112.1 | 115.2 | 106.1 | 121.2 | 172.7 | 109.1 | 93.9 | 93.9 |
Description of graphic in accessible text
This line graph shows changes in four indicators related to Ontario’s accommodation and food services sector over a 10-year period. Employment was flat between 2014 and 2019, declined in 2020, and has slowly increased since then. Sector GDP follows a similar trajectory, with growth after 2020 outpacing that of employment. Operating profit margins for accommodation services initially peaked in 2017 before declining significantly in 2020. Recovery was strong between 2020 and 2022, before stabilizing from 2022 onwards. Operating profit margins for food and drinking places in Ontario grew gradually between 2014 and 2020, peaked in 2021, before assuming a downward trend.
Sources: Canada, Labour Force Survey, Custom Table; Statistics Canada, Gross Domestic Product by Industry - Provincial and Territorial (Annual), Table 36-10-0711-01; Statistics Canada, Annual Survey of Service Industries: Accommodation Services, Table 33-10-0102-01; and Statistics Canada, Annual Survey of Service Industries: Food Services and Drinking Places, Table 21-10-0171-01
*Data are expressed as an index, where year 2014 = 100%
Employment Outlooks
The accommodation and food services sector in Ontario is expected to experience moderate employment between 2025 and 2027, though overall industry growth may be limited by spending pressures on consumers and sustained labour shortages.
The economic outlook and global macroeconomic conditions continue to influence Canadians’ discretionary spending patterns, with ongoing trade tensions with the United States expected to restrain consumer spending. Despite the overall resilience in discretionary spending to date, a recent industry report found that three in four Canadians are not dining out due to affordability issues, a trend even more pronounced among those aged 18 to 34. In addition, rising input costs for restaurants are reflected in higher menu prices, which in turn are also shaping consumer behaviour. Diners are increasingly seeking discounts online and favouring more budget-friendly menu options, reflecting a broader pullback in discretionary spending.
Another key driver of growth in this sector is consumer demand for tourism and related goods and services. Forecasts indicate that Ontario’s tourism revenues are expected to increase from $86 billion to over $101 billion in 2027, and while establishments in this sector cannot attribute all their revenues to tourism, they will likely benefit from this growth. In addition, ongoing economic uncertainties may continue encouraging more Canadians to choose domestic travel.
At the same time, fluctuations in currency exchange rates, particularly the depreciation of the Canadian dollar relative to the U.S. dollar, may also influence cross-border travel patterns. A weaker Canadian dollar could attract more foreign visitors, especially from the United States, thereby supporting tourism and creating new opportunities for the sector. Business travel is also projected to grow; data from the first six months of 2025 indicate that while leisure travel to the U.S. is declining, corporate travel has remained consistent.
Looking ahead, the 2026 FIFA World Cup is expected to boost tourism in the province. With preparations already underway, the event is anticipated to create more than 6,600 jobs between June 2023 and August 2026, while contributing up to $940 million in economic impact across the Greater Toronto Area. However, factors like slower population growth and shifts in immigration policy, may continue to affect the availability of workers for seasonal and part-time roles, which are common in the sector. As a result, attracting and retaining employees will remain a challenge.
Key trends affecting the outlook of the accommodation and food services sector
- Macroeconomic uncertainty and rising costs impacting both businesses and consumers.
- Growth in domestic travel, steady business-related trips, and rising hotel development activity.
- Slowing population growth affecting long-term labour supply.
- Labour shortages and heightened competition for workers.
For Further Information
Note: In preparing this document, the authors have taken care to provide clients with labour market information that is timely and accurate at the time of publication. Since labour market conditions are dynamic, some of the information presented here may have changed since this document was published. Users are encouraged to also refer to other sources for additional information on the local economy and labour market. Information contained in this document does not necessarily reflect official policies of Employment and Social Development Canada.
Portions of this sector profile were prepared with support from artificial intelligence (AI) tools, in accordance with Employment and Social Development Canada (ESDC) guidelines. All AI-assisted content has been reviewed for accuracy and compliance with ESDC standards.
Prepared by: Labour Market and Socio-economic Information Directorate, Service Canada, Ontario Region
For further information, please contact the Labour Market Information Directorate.
Appendix
| 2022-2024 Average | 2022-2024 Average | |
| Ontario | 100.0% | 5.2% |
| Ottawa | 10.2% | 5.2% |
| Kingston-Pembroke | 3.4% | 5.9% |
| Muskoka-Kawarthas | 2.8% | 5.8% |
| Toronto | 43.9% | 4.8% |
| Kitchener-Waterloo-Barrie | 10.4% | 5.0% |
| Hamilton-Niagara Peninsula | 12.7% | 6.5% |
| London | 5.4% | 5.5% |
| Windsor-Sarnia | 5.0% | 6.1% |
| Stratford-Bruce Peninsula | 1.7% | 4.4% |
| Northeast | 3.2% | 4.9% |
| Northwest | 1.3% | 5.0% |
Source: Statistics Canada, Labour Force Survey, Custom Table
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|---|---|---|---|---|---|
| Employment, 2024 | Share of Total (%) | AAGR (%)* | Share of Total (%) | AAGR (%)* | |
| Employment | 420,500 | 100.0% | 0.0% | 100.0% | 1.8% |
| Male | 191,600 | 45.6% | 1.3% | 52.8% | 1.9% |
| Female | 228,900 | 54.4% | -0.9% | 47.2% | 1.7% |
| 15-24 years old | 178,600 | 42.5% | 0.6% | 12.6% | 1.0% |
| 25-54 years old | 198,500 | 47.2% | -0.3% | 66.2% | 1.8% |
| 55 years and older | 43,400 | 10.3% | 1.0% | 21.2% | 2.6% |
| Worked full-time | 217,800 | 51.8% | -1.0% | 82.4% | 2.1% |
| Worked part-time | 202,700 | 48.2% | 1.5% | 17.6% | 0.8% |
| Self-employed | 27,600 | 6.6% | -0.8% | 13.5% | 0.9% |
| Employees | 392,900 | 93.4% | 0.2% | 86.5% | 2.0% |
| Permanent job | 325,700 | 77.5% | 0.1% | 77.0% | 2.2% |
| Temporary job | 67,300 | 16.0% | 0.8% | 9.5% | 0.8% |
| Less than high school | 71,300 | 17.0% | -1.0% | 5.8% | -2.0% |
| High school graduate | 160,200 | 38.1% | -1.3% | 21.2% | -0.9% |
| Postsecondary cert. or diploma | 104,700 | 24.9% | 0.8% | 31.3% | 1.3% |
| University degree | 84,300 | 20.0% | 4.3% | 41.7% | 5.1% |
Sources: Statistics Canada, Labour Force Survey, Custom Tables
*Average annual growth rate for last ten years available data