Canada’s automotive aftermarket is showing a widening divide in early 2026, with employment in repair and maintenance continuing to grow while parts and accessories retail moves in the opposite direction, according to new data.
DesRosiers Automotive Consultants reported that employment in automotive repair and maintenance rose 1.9 per cent year over year in February to 123,100 workers, reflecting steady demand for service work. At the same time, parts and accessories retail employment declined by 2.1 per cent, highlighting uneven conditions across aftermarket segments.
The divergence comes as total automotive employment dipped 0.8 per cent year over year to 578,9000 workers in February, with broader industry pressures filtering unevenly through the sector.
Growth in repair and maintenance continues to be supported by an aging vehicle parc and ongoing consumer caution around new vehicle purchases, DesRosiers noted. This is keeping more vehicles on the road longer and driving service demand. In contrast, parts retail is facing headwinds tied to shifting consumer spending patterns, inventory dynamics and broader economic uncertainty, industry experts have told Auto Service World separately.
Elsewhere in the automotive sector, results were mixed. Motor vehicle parts and accessories manufacturing recorded the steepest decline, with employment falling 8.7 per cent year over year. On the other hand, motor vehicle manufacturing posted a modest 1.4 per cent gain, though it remains below pre‑pandemic levels. Dealership employment, the largest segment, edged up just 0.3 per cent to 158,200 workers.
“Employment figures saw growth in 2023 and 2024 but have begun to see some pullback as we move through 2026,” said Andrew King, managing partner at DesRosiers. “The sector has proven its resilience so far, but the ongoing political and international turmoil does carry clear consequences for Canadians, and a positive path forward on trade is needed to solidify this crucial employment base.”
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