For shop owners looking for signs of stability in an increasingly volatile automotive industry, there’s one clear bright spot: employment growth in Canada’s automotive repair, or auto care, sector.

Newly released Q1 2025 employment data reveals the auto care sector continues to demonstrate both resilience and growth—even as other segments show signs of strain under the pressure of U.S. tariffs and broader economic uncertainty.

According to figures released by DesRosiers Automotive Consultants (DAC), while total employment in the Canadian automotive sector saw only a minor 0.2% dip compared to March 2024, several key sub-sectors fared worse.

Parts and accessories manufacturing took a notable hit, with employment down 2.5%. Automotive parts and accessories retail stores also slipped by 0.6%. Even the motor vehicle manufacturing sector, which saw a modest 1.1% gain, did so only in contrast to a particularly weak March 2024—when retooling at several plants led to an 8.5% drop from the previous year.

Yet within this bumpy landscape, automotive care emerged as a beacon of consistency, posting a 1.7% year-over-year employment increase. This trend says much about the ongoing demand for service work and the essential role repair shops continue to play in keeping Canada’s vehicle population roadworthy.

With vehicle owners keeping their cars longer and new car inventories stabilizing, the service lane remains a growth opportunity.

This resilience stands in stark contrast to the uncertainty clouding the rest of the sector.

April and May have already seen broader job losses across the manufacturing base, pushing national unemployment to 7%. As the trade dispute with the U.S. deepens, experts are warning of further instability. “The automotive sector will likely see more job losses in the Q2 data,” said Andrew King, Managing Partner at DAC, “and without a resolution to the trade war soon, at least some of the ground won back post-pandemic will once again be yielded.”

For shop owners, the key takeaway is this: while upstream disruptions and geopolitical wrangling may shake supply chains and squeeze margins, the demand for skilled service remains strong. In a shifting economic landscape, that makes the service bay one of the safest bets for sustained success.