‘They’re still hiring, but with more intention, more strategy and a sharper eye on the future’
Many Canadian employers are exercising caution when it comes to their hiring plans for the rest of this year, according to a recent report.
While most hiring managers (69 per cent) still feel positive about their company’s hiring outlook for the remainder of 2025, that optimism has dimmed since a year ago (74 per cent), reports Express Employment Professionals.
Meanwhile, those expressing a negative hiring outlook have increased to 46 per cent from 38 per cent last June.
While 43 per cent still plan to increase their workforce in the second half of the year, that is a decline from 49 per cent last summer.
“These numbers tell a story of employers recalibrating,” says Bob Funk, Jr., CEO, president and chairman of Express Employment International. “They’re still hiring, but with more intention, more strategy and a sharper eye on the future.”
While summer usually brings a hiring boost, more small businesses are thinking about layoffs (16% in July, up from 13% in June), according to a previous Canadian Federation of Independent Business (CFIB) survey.
What is the reason behind future hiring plans?
For those planning to hire, the top reasons include: the need to manage growing workloads (51 per cent), fill newly created roles (35 per cent), and replace employees lost to turnover (42 per cent), according to Express’ survey of 500 Canadian hiring decision-makers, conducted June 2–18, 2025 by The Harris Poll.
Companies are now most likely to hire mid-level employees (46 per cent), as entry-level hiring (43 per cent) has dropped sharply compared to last year (56 per cent). Full-time positions remain the most sought-after (74 per cent), while one quarter of companies (25 per cent) plan to hire for part-time roles.
Meanwhile, the number of companies planning to cut their workforce has increased to 13 per cent, compared to eight per cent last year. Why:
- cost-cutting (67 per cent)
- adapting to government policy changes (30 per cent)
- responding to declining demand (25 per cent).
As many companies continue to face hiring struggles, most hiring managers in Canada (86 per cent) report their company has waived some job requirements to fill open roles, according to a previous Express report.
Hiring strategies for rest of 2025
“As the hiring landscape continues to evolve, and candidate expectations evolve alongside it, having the right hiring strategy in place will be a major differentiator for success,” says Blaise Radley, content marketing manager at Workday. “A strong strategy demands an intentional and candidate-focused approach that effectively integrates technology while maintaining a strong human connection.”
He shares that following tips for employers:
- Shift to skills-based hiring.
- Prioritise the candidate journey.
- Use artificial intelligence and data to recruit smarter.
- Improve the employee experience.
- Optimise interviews and onboarding.
- Build a strong talent pipeline.
- Plan proactively for the future.
