Most Canadian companies are bracing for a recession they believe will hit within the next year, with many already cutting costs and scaling back hiring plans, according to new survey data.
Three-quarters of Canadian companies expect a recession, with 51% believing it will occur in the next 12 months and 14% saying the country is already in one, according to Express Employment Professionals-Harris Poll survey results released Tuesday.
The economic anxiety is driving immediate business changes. Nearly one-quarter of companies have stopped hiring or increasing headcount this year due to recession concerns, according to the survey of 500 Canadian hiring decision-makers conducted in June.
Survival concerns mount
The potential impact worries business leaders. Thirty-three percent of companies admit they may not survive a recession this year, rising to 46% among blue-collar employers, the survey found.
Ninety-three percent of companies say a recession would affect their organization, with 55% expecting significant impact, according to the data.
Companies cut costs, delay investments
Businesses have already started preparing, with 81% taking proactive steps, the survey shows. The most common actions include cutting unnecessary expenses (42%), adjusting pricing or payment plans (26%), and reducing inventory (25%).
Other preparation measures include cross-training employees for multiple roles (23%), streamlining processes (22%), and not filling vacant positions (21%). Twenty percent of companies have delayed raises or bonuses, according to the survey.
Long-term planning suffers
The focus on recession preparation comes at a cost. Sixty-two percent of companies say recession planning has pulled time away from efforts to improve their organization’s long-term future, the survey found.
If a recession hits, 30% of companies would reduce hiring and 23% would freeze hiring altogether, according to the data.
Some optimism remains
Despite concerns, many employers see potential opportunities. Seventy-one percent believe they will be in a better economic position at year-end than at the start, and 54% view a potential recession as more of a growth opportunity than a threat, the survey shows.
To navigate a downturn, hiring managers want training and upskilling programs (47%), mental health resources for employees (33%), and flexible staffing solutions (33%), according to the results.
“The most resilient companies don’t just react to economic shifts; they use them as catalysts to become more efficient,” said Bob Funk Jr., CEO of Express Employment International. “By streamlining operations and investing in versatile talent, businesses can position themselves for long-term success in any environment.”
The survey was conducted online in Canada from June 2-18, 2025, among 500 Canadian hiring decision-makers.
