Tax relief fuels job creation, with over 34,600 new positions added since November 2024.
Canada’s foodservice sector sees record employment growth, fueled by the GST holiday. Restaurants Canada calls for extended tax relief
TORONTO – Canada’s foodservice sector has reached its highest employment levels since the start of the pandemic, driven by a surge in consumer spending during the federal GST/HST holiday, according to the latest Labour Force Survey from Statistics Canada. Restaurants Canada reports that the industry added 34,600 new jobs since November 2024, bringing total employment to 1,175,900—representing one in six new jobs created nationwide.
“The GST/HST holiday has been a crucial support for our industry during the ongoing affordability crisis,” said Kelly Higginson, President and CEO of Restaurants Canada. “We are Canada’s fourth-largest private-sector employer and among the first to face job losses during economic downturns. This tax relief is helping to keep Canadians employed and businesses open.”
Employment Growth Despite Seasonal Slowdown
January and February are typically the slowest months for the restaurant industry, often leading to job cuts. However, January 2025 saw 67,500 more jobs in foodservice than January 2024—a 6.1% increase, far outpacing the 2% job growth across all industries.
Restaurants Canada Calls for Permanent Tax Relief
Despite the boost in employment, financial struggles persist. Over half (53%) of restaurants are operating at a loss or barely breaking even, compared to just 12% pre-pandemic. Reduced consumer spending, rising food costs, and the looming U.S. tariff dispute threaten the sector’s stability.
“Canadians are already struggling to afford essentials. If U.S. tariffs take effect, food prices will rise even further,” said Higginson. “Keeping all food tax-free would provide relief to both consumers and businesses.”
Restaurants Canada is urging the federal government to permanently exempt food from GST/HST or extend the tax holiday until the tariff issue is resolved.
