The top challenges cited by Canadian hiring decision-makers include:
finding qualified candidates (45%)
navigating AI in recruitment and hiring processes (28%)
planning labour needs due to recession concerns or policy changes (20%)
increased competition in the job market (20%).
“The mismatch between open jobs and available talent is not something businesses can afford to ignore,” said Bob Funk Jr., CEO, president and chairman of Express Employment International. “Job seekers have an opportunity to build skills in areas where employers need help most, and companies have an opportunity to invest in people who show potential. The right worker may not always arrive ready-made, but with the right training and support, they can become the right fit.”
Some companies holding steady or cutting
Not every employer is expanding. Almost half (47%) of hiring managers said their company plans to maintain current staffing levels through the second half of 2026, while 8% plan to reduce their workforce.
Among companies planning to decrease staffing, 60% cited the need to reduce costs, 46% pointed to increased use of automation, technology or artificial intelligence, and 31% said they are not replacing employees who leave, found the Express survey.
The findings indicate cost and efficiency pressures, rather than declining demand, are the primary drivers behind planned staff reductions.