Transportation and Warehousing (NAICS 48-49): Ontario, 2025
Highlights
- There were 421,600 people employed in Ontario’s transportation and warehousing industry, comprising 5.2% of Ontario’s workforce in 2024.
- Employment in the transportation and warehousing industry increased by 4.9% in 2024.
- Employment is expected to see modest growth over the 2025-2027 forecast period, supported by e-commerce activities, new warehousing facilities, increasing travel, and ongoing public sector investments in transit infrastructure.
About the Sector
Composition and importance of the sector
The transportation and warehousing sector is comprised of establishments that transport passengers and goods, warehouse and store goods, and businesses that provide services to these establishments. It includes various modes of transportation, such as road (e.g., trucking, ground passenger transportation), rail, water, air, and pipeline. National post office and courier establishments are also included in this sector.
Many establishments in this sector are structured as networks, with activities, workers, and physical facilities distributed over an extensive geographic area. As such, the sector supports trade and plays an important role in the movement of goods.
In 2024, the transportation and warehousing sector employed 421,600 people in Ontario, approximately 5.2% of the province’s workforce.
In 2024, the sector contributed $34.4 billion to Ontario’s Gross Domestic Product (GDP), or approximately 4.4% of the province’s total GDP.
- Between 2023 and 2024, output in the industry grew by approximately $1.2 billion (+3.5%).
- Between Q1 2024 and Q1 2025, output rose slightly by $18 million (+0.1%).
Due to the equipment-focused nature of work in the sector, machinery and tools account for a notable amount of investment in the transportation and warehousing sector. In 2024, the sector’s capital expenditures totalled more than $19.4 billion (+18.7% increase from 2023), and accounted for approximately 16.6% of all capital expenditures across Ontario.
| Truck Transportation | Transit and Ground Passenger Transportation | Scenic and Sightseeing Transportation & Support Activities for Transportation | Couriers and Messengers | Postal Service | Other Subsectors | |
|---|---|---|---|---|---|---|
| 29% | 23% | 11% | 14% | 7% | 16% |
Description of graphic in accessible text
A pie graph that shows a breakdown of transportation and warehousing employment by subsector, in percentages. Truck transportation made up the largest share of employment (29%), followed by transit and ground passenger transportation (23%), couriers and messengers (14%), scenic and sightseeing transportation and support activities (11%), and the postal service (7%). The remaining 16% of employment is made up of a mix of smaller subsectors.
Source: Statistics Canada, Labour Force Survey, Custom Table
Geographical distribution of employment
The transportation and warehousing sector is concentrated in southern Ontario, particularly in the Toronto Economic Region (ER). Employment in the Toronto ER accounts for 54.8% of provincial transportation and warehousing employment, followed by Kitchener-Waterloo-Barrie (9.8%) and the Hamilton-Niagara Peninsula (8.9%).
Ontario represents a large proportion of the Canadian employment in this sector: more than a third of all individuals employed in this sector in Canada worked in Ontario in 2024 (38.8%), comparable to Ontario’s share of total employment in Canada (39.3%).
| Ottawa | 32,800 | 7.8% |
| Kingston-Pembroke | 8,600 | 2.0% |
| Muskoka-Kawarthas | 4,700 | 1.1% |
| Toronto | 230,900 | 54.8% |
| Kitchener-Waterloo-Barrie | 41,100 | 9.8% |
| Hamilton-Niagara Peninsula | 37,400 | 8.9% |
| London | 21,100 | 5.0% |
| Windsor-Sarnia | 19,400 | 4.6% |
| Stratford-Bruce Peninsula | 5,200 | 1.2% |
| Northeast | 14,800 | 3.5% |
| Northwest | 5,400 | 1.3% |
Source: Statistics Canada, Labour Force Survey, Custom Table
*Note: Totals may not sum due to rounding.
Workforce
Workforce characteristics
- Males accounted for 76.5% of Ontario’s transportation and warehousing workforce in 2024, compared to 52.8% for all industries.
- The workforce tends to be older, with more than a quarter (27.2%) over 55 years old. In all other industries, this age group makes up about 21.2% of workers.
- Self-employment was more common in this industry at 22.2% in 2024, compared to 13.5% for all industries.
- A lower proportion of the transportation and warehousing workforce holds a university degree (26.8%) when compared to the provincial average (41.7%).
- The average hourly transportation and warehousing wage rate was $30.68 in 2024, slightly above the provincial average of $30.50.
| 73300 Transport truck drivers | 81,000 | 19.2% |
|---|---|---|
| 73301 Bus drivers, subway operators and other transit operators | 36,400 | 8.6% |
| 75200 Taxi and limousine drivers and chauffeurs | 28,900 | 6.9% |
| 75201 Delivery service drivers and door-to-door distributors | 26,500 | 6.3% |
| 75101 Material handlers | 21,600 | 5.1% |
Source: Statistics Canada, Labour Force Survey, Custom Table
Note: The NOCs listed make up approximately half of those employed in the sector.
Recent History
Employment in the transportation and warehousing sector has been growing since 2022, adding 41,000 jobs over the last two years (+10.8%). In 2024, the fastest growing subsector was couriers and messengers (+23.3%), likely due to the ongoing rise of e-commerce. Online sales from Canadian-based retailers totalled $48.9 billion in 2024, a notable increase compared to 2023 (+8.4%). Growing e-commerce activities also support employment in Ontario’s warehousing and storage subsector (+7.2%); several major warehousing facilities and distribution centres have opened in the province since early 2024.
Rail transportation experienced the second largest proportional increase in employment (+19.0%) in 2024. The Ontario government continued to expand its passenger rail system as ridership grows, increasing both the frequency of service as well as extending the GO train service to other communities in the Greater Toronto Area, while investments are also being made to support growth in the province’s rail network. In addition, the volume of rail freight carried in Canada in 2024 was higher than the previous year, driven by increases in some agricultural and food products.
Subsectors with more modest employment growth over the last year include truck transportation (+2.7%), transit and ground passenger transportation (+3.9%), scenic and sightseeing transportation and support activities for transportation (+5.5%). As more workers return to the office, normalized commuting patterns have contributed to growing ridership on public transit systems across Ontario, especially in larger cities. Similarly, transport-related employment in the tourism sector has also recovered across Canada, particularly from the end of 2023 onwards.
In contrast, employment in the postal service subsector (-9.6%) declined over the course of 2024. The postal service is facing longer-term structural challenges, such as a decline in the volume of letter mail and competition in the parcel delivery space. The air transportation subsector also experienced a slight employment drop (-4.9%), although demand for air travel as a whole continues to grow. In 2024, major airports in Ontario like Toronto Pearson and Ottawa Macdonald-Cartier saw air passenger traffic increase by 13.0% and 4.3% respectively.
| Year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Employment | 100.0 | 97.6 | 100.7 | 103.3 | 113.4 | 120.5 | 106.9 | 111.7 | 116.5 | 122.9 | 129.0 |
| GDP | 100.0 | 103.7 | 105.7 | 110.0 | 112.0 | 116.2 | 84.6 | 89.4 | 108.9 | 117.5 | 121.7 |
| Capital Expenditures | 100.0 | 125.0 | 117.6 | 133.4 | 160.6 | 157.1 | 152.0 | 166.4 | 179.9 | 224.7 | 266.8 |
Description of graphic in accessible text
This line graph shows changes in three indicators related to Ontario’s transportation and warehousing sector over a 10-year period. Employment grew between 2015 and 2019, fell briefly in 2020, and has increased steadily since then. Sector GDP also grew until 2019 before dipping sharply during the pandemic (2020 and 2021). GDP growth has risen since 2022. Capital expenditures by the sector have been on an overall upward trajectory, with accelerated growth from 2022 onwards.
Sources: Statistics Canada, Labour Force Survey, Table 14-10-0023-01; GDP by Industry – Provincial and Territorial (Annual), Table 36-10-0711-01; and Annual Capital and Repair Expenditures Survey: Actual, Preliminary Estimates and Intentions, Table 34-10-0035-01
*Data are expressed as an index, where year 2014 = 100%
Employment Outlooks
The transportation and warehousing sector is expected to see modest growth over the 2025 to 2027 forecast period.
Online shopping and e-commerce activities will likely continue to support employment in transportation, warehousing, and storage across the province, albeit at a more moderate level than in previous years. Several distribution centres and logistics-oriented facilities opened in Ontario in 2025, with additional ones expected to be operational in 2026. However, trade tensions with the United States are creating uncertainty for consumers and businesses, and negatively impacting the overall volume of goods transported to the U.S., Canada’s largest trading partner in both goods and services. For example, demand for storage was elevated in the short-term as businesses stockpiled goods in anticipation of tariffs, a protracted trade dispute with the U.S. could potentially lower demand for truck transportation and related logistical support services.
Increasing passenger traffic and travel will also contribute to sector employment during this period. Air transportation in 2025 has surpassed pre-pandemic levels and is projected to grow in the long-term, while ridership on large public transit systems in Ontario continues to grow. The Toronto Transit Commission for example, expects to deliver up to 480 million rides in 2028 (+21.2% compared to 2023). As more companies and organizations mandate workers to return to the office full-time, this could further enhance public transit use.
Lastly, ongoing public sector investments to support longer-term transit planning, such as subway expansion plans, light rail projects, and regional rail electrification projects across the Greater Toronto Area, are underway and are expected to create employment opportunities in the transit and ground passenger transportation subsector. In addition, starting in 2026-27, the Canada Public Transit Fund will provide $3 billion in federal funding per year for public transit and active transportation infrastructure.
Key trends affecting the outlook of the transportation and warehousing sector
- E-commerce activities supporting demand for transportation, warehousing, and storage employment.
- Ongoing trade issues and economic uncertainty may reduce the volume of goods requiring transport.
- Large investment in public transit infrastructure.
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% | 5.0% |
| Ottawa | 7.5% | 3.7% |
| Kingston-Pembroke | 2.2% | 3.6% |
| Muskoka-Kawarthas | 1.4% | 2.8% |
| Toronto | 55.0% | 5.9% |
| Kitchener-Waterloo-Barrie | 9.4% | 4.4% |
| Hamilton-Niagara Peninsula | 9.4% | 4.7% |
| London | 5.1% | 5.1% |
| Windsor-Sarnia | 4.0% | 4.7% |
| Stratford-Bruce Peninsula | 1.3% | 3.2% |
| Northeast | 3.3% | 4.8% |
| Northwest | 1.4% | 5.3% |
Sources: Statistics Canada, Labour Force Survey, Custom Table
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| Employment, 2024 | Share of Total (%) | AAGR (%)* | Share of Total (%) | AAGR (%)* | |
| Employment | 421,600 | 100.0% | 2.7% | 100.0% | 1.8% |
| Male | 322,600 | 76.5% | 3.0% | 52.8% | 1.9% |
| Female | 99,100 | 23.5% | 2.3% | 47.2% | 1.7% |
| 15-24 years old | 25,000 | 5.9% | 5.3% | 12.6% | 1.0% |
| 25-54 years old | 281,800 | 66.8% | 2.4% | 66.2% | 1.8% |
| 55 years and older | 114,800 | 27.2% | 3.7% | 21.2% | 2.6% |
| Worked full-time | 364,200 | 86.4% | 2.7% | 82.4% | 2.1% |
| Worked part-time | 57,400 | 13.6% | 3.0% | 17.6% | 0.8% |
| Self-employed | 93,700 | 22.2% | 4.0% | 13.5% | 0.9% |
| Employees | 328,000 | 77.8% | 2.5% | 86.5% | 2.0% |
| Permanent job | 300,100 | 71.2% | 2.6% | 77.0% | 2.2% |
| Temporary job | 27,800 | 6.6% | 2.6% | 9.5% | 0.8% |
| Less than high school | 30,000 | 7.1% | -1.6% | 5.8% | -2.0% |
| High school graduate | 128,600 | 30.5% | 0.9% | 21.2% | -0.9% |
| Postsecondary cert. or diploma | 150,200 | 35.6% | 2.8% | 31.3% | 1.3% |
| University degree | 112,900 | 26.8% | 9.3% | 41.7% | 5.1% |
Sources: Statistics Canada, Labour Force Survey, Custom Table
*Average annual growth rate for last ten years available data
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