Employment in the foodservice sector increased to its highest level since the start of the pandemic in January, according to the latest Labour Force Survey by StatsCan, spurred by guests taking advantage of the GST/HST holiday, says Restaurants Canada.
The industry added 34,600 new jobs since November 2024, reaching 1,175,900 jobs and representing one in six new jobs created in Canada, said the national organization on Tuesday.
“The GST/HST holiday has provided much-needed relief to Canadians and has been a vital support for our industry during the ongoing affordability crisis,” said Kelly Higginson, President and CEO at Restaurants Canada.
“We are Canada’s 4th largest private-sector employer and one of the first to experience job losses in times of economic strain. Simply put, the tax holiday is creating employment in communities across Canada and keeping people employed at a very challenging time. Ending this tax relief now would directly hurt Canadian workers and families.
“Canadians are already struggling to afford the essentials. If U.S. tariffs come into effect, we’re looking at more increases to the cost of living, including food. Government can provide some stability and relief to Canadians and the restaurant industry by keeping all food tax-free.”
January and February tend to be the slowest times for the foodservice industry, which often leads to lower employment levels. However, there were 67,500 more jobs in the industry in January 2025 than there were in January 2024, a 6.1% increase compared to just 2% across all industries, said the national organization.
Restaurants Canada said it has been calling on the federal government to permanently exempt all food from GST and HST or at least extend the tax relief until the tariff dispute with the United States is resolved. More than half (53%) of restaurants are operating at a loss of just breaking even, compared to just 12% pre-pandemic, largely as a result of reduced consumer spending.
Restaurants Canada is a national, not-for-profit association advancing Canada’s diverse and dynamic foodservice industry. Restaurants are a $120 billion industry employing nearly 1.2 million Canadians and is the number one source of first-time jobs in Canada.
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