1.2.1. Socio-economic and Demographic Factors Affecting the Industry
The food service industry is uniquely positioned as it directly serves the entire population, making it highly sensitive to demographic and socio-economic shifts. Some recent trends that have played a role in shaping the structure of the industry are as follows.
Status of Women
The late 20th century and the early 21st century have marked a significant shift in the participation and acceptance of women in the workforce. According to Statistics Canada estimates from November 2022, women had a labor force participation rate of 85.1%, with an employment rate of 81.6%. Beyond participation, women are increasingly taking on leadership roles across various sectors (Statistics Canada 2023b). These figures reflect a broader societal transformation of women spending less time in domestic roles such as food preparation.
Smaller Households
The global trend of shrinking household sizes is clearly reflected in Canada. In the early 20th century, the typical Canadian household often consisted of two parents living with multiple children (Statistics Canada 2015). Today, however, household sizes have significantly decreased. This shift is not only a consequence of declining birth rates but also of changing social norms—particularly the decreasing prevalence of marriage. As a result, there has been a notable rise in single-person and childless households, reshaping the traditional concept of family and domestic life in Canada, including food preparation needs.
Declining Birth Rate
As noted earlier, Canada has experienced a steadily declining birth rate over the past 15 years. This trend reached a historic low in 2023, with the fertility rate falling to 1.3 children or fewer per woman (Statistics Canada 2024b). The implications of this demographic shift are far-reaching, affecting everything from workforce sustainability to long-term economic growth and social services planning.
Increase in Landed and Racialized Immigrants
According to the 2021 Census, landed immigrants now make up approximately one-quarter (23%) of the Canadian population—the highest proportion since 1921, when they accounted for 22.3% (Statistics Canada 2022). The proportion of landed immigrants is expected to reach over 30% of the Canadian population in the next 10 years. The countries of origin of Canadian immigrants have also shifted from Europe to other parts of the world, with India and the Philippines, alone, accounting for 30% of all Canadian immigrants in 2021. These shifts have also let to growing diversity, 26.5% of Canadians are from racialized populations (Hou, Schimmele, and Stick 2023). Demographic changes are reshaping the social and cultural fabric of the country, contributing to a more multicultural and inclusive society.
More Educated Population
Canada boasts a remarkably high literacy rate, consistently ranking among the top 10 out of 27 countries in the 2022 Program for the International Assessment of Adult Competencies (PIAAC) (Statistics Canada 2024c). Beyond basic literacy, a significant portion of the Canadian population has attained post-secondary education, contributing to one of the most highly educated workforces globally.
Labor Shortages
Canada is grappling with a significant labor shortage, largely driven by its rapidly aging population. As more individuals retire, the proportion of people dependent on the working population increases, while the number of active workers declines. Although immigration has helped to mitigate some of these workforce gaps, many sectors continue to struggle with unfilled positions. The food service industry has been hit hard by labor shortages. In 2021, approximately 60% of food service establishments reported difficulties in both recruiting and retaining staff (Government of Canada 2024a). This trend highlights a broader challenge across the economy, where persistent vacancies are becoming increasingly difficult to fill despite ongoing efforts to attract and retain talent.
