Canadian employers are pulling back on hiring plans for the second half of 2025, with new survey data showing a notable decline in optimism compared to last year.
While 69% of hiring managers still feel positive about their company’s hiring outlook for the remainder of 2025, that figure has dropped from 74% a year ago, according to a survey conducted by The Harris Poll on behalf of Express Employment Professionals. Meanwhile, nearly half of respondents (46%) now express a negative hiring outlook, up from 38% in June 2024.
The shift reflects broader economic uncertainty as companies balance growth ambitions with financial caution. About 43% of companies still plan to increase their workforce in the second half of the year, down from 49% last summer.
Key drivers behind hiring decisions
For companies that are hiring, managing growing workloads remains the top priority at 51%, followed by replacing employees lost to turnover (42%) and filling newly created roles (35%).
However, more companies are planning workforce reductions. About 13% now plan to cut employees, compared to 8% last year. Cost cutting drives most of these decisions (67%), followed by adapting to government policy changes (30%) and responding to declining demand (25%).
Shift in hiring priorities
The types of roles companies seek have also changed. Mid-level employees are now the top target (46%), while entry-level hiring has dropped significantly to 43% from 56% last year. Full-time positions remain most in demand (74%), with a quarter of companies (25%) planning to hire part-time roles.
“These numbers tell a story of employers recalibrating,” said 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.”
The Job Insights survey was conducted online within Canada by The Harris Poll from June 2-18, 2025, among 500 Canadian hiring decision-makers.
