Nearly one-third say their business can't survive much longer if wages and costs keep rising
Six in 10 Canadian hiring managers say the current political climate is affecting their company, and some are delaying hiring until they have a clearer picture of the economy and government policy, according to survey.
Of the 60 per cent of hiring managers who report an effect, it is more often negative than positive.
Forty per cent say politics has hurt their company, while 20 per cent say it has helped, according to the survey released by Express Employment Professionals.
Waiting before hiring
One in five hiring managers (20 per cent) say planning labour needs will be one of their company's biggest hiring challenges for the rest of the year, citing concerns about a recession or economic downturn and changes in government policies.
Among companies planning to cut or hold their headcount steady in the second half of the year:
- 21 per cent point to concerns about a recession or economic downturn.
- 14 per cent say they are waiting to see the outcomes of changes in government policies before hiring.
- 11 per cent say they are waiting for the economy to return to normal.
Job seekers reported feeling the effects as well. More than one-third (36 per cent) say politics had hurt their ability to find a new job, according to a companion survey of people looking for work.
Costs squeeze budgets
Sixty-one per cent of hiring managers say rising costs have affected their company's ability to operate or grow. Of those, 48 per cent report a negative impact and 13 per cent a positive one.
The area most affected by recent cost increases is wages and compensation:
For some employers, the concern is more basic. Twenty-nine per cent of hiring managers say their company won't be able to survive much longer if wages or costs keep rising so quickly.
That share is down significantly from 40 per cent in spring 2022, according to Express.
Job seekers are under financial pressure too. Ninety-two per cent say rising costs had affected their decision to look for a new job, and 71 per cent describe that impact as moderate or substantial.
"Political instability creates an uncertain hiring environment and an unpredictable economy," says Bob Funk Jr., CEO, president and chairman of Express Employment International, the Oklahoma City-based franchisor of Express Employment Professionals.
"While businesses can't control these external pressures, thoughtful planning gives leaders the flexibility to make difficult decisions today while protecting the people and investments that drive future growth," Funk said.
The Job Insights survey was conducted online in Canada from May 15 to June 1, 2026, among 508 Canadian hiring decision-makers. The Job Seeker Report was conducted online from May 19 to June 8, 2026, among 508 Canadian adults aged 18 and older who were either employed and looking for a new job or unemployed and looking for work.
