Nearly three-quarters of Canadian companies (74%) are optimistic about their hiring outlook for the remainder of 2024, but budget constraints are hindering some from expanding their workforce, according to a new Express Employment Professionals-Harris Poll survey.
Most Canadian companies (74%) have a positive outlook for their company’s hiring opportunities for the remainder of the year, reporting feelings of optimism (38%), confidence (33%) and hopefulness (32%).
Accordingly, half of Canadian companies (49%) plan to increase the number of employees at their company in the second half of 2024 – on par with previous survey results.
New business opportunities remain a strong driver for workforce expansion, as companies report dealing with increased volumes of work (56%), fulfilling newly created positions (44%), and handling expansion into other categories or markets (25%) as key reasons for needing new hires. Other reasons reported included needing to fill open positions due to employee turnover (38%) and acquiring workforce expertise in new areas (26%).
Budget Constraints Hampering Employment for Some Companies
However, two in five companies (41%) plan to keep their employee count the same in the second half of 2024, and a few (8%) are planning to reduce their workforce, also on par with previous waves of the survey.
Financial constraints appear to be impeding company growth for many, as a large majority (73%) of Canadian hiring decision-makers whose company are planning a workforce reduction point to the need to reduce costs as the reason.
Additionally, around 3 in 10 companies (28%) who are either not planning hiring or planning to decrease the number of employees say they do not have enough room in the budget this year and cannot afford to hire right now. Other reasons why some companies are reducing their workforce include a decline in demand (22%) and the company being restructured (21%).
“It’s encouraging to see so many companies optimistic about their hiring plans for the remainder of the year,” said Bill Stoller, Express Employment International CEO. “With labour demands shifting from traditional roles, job seekers should research in-demand careers and begin the credentialing process now to stand out from the competition. It’s evident employers are looking to do more than just fill positions; they are looking for the right fit.”
Survey Methodology
The Job Insights survey was conducted online within Canada by The Harris Poll on behalf of Express Employment Professionals between May 16 – June 3, 2024, among 504 Canadian hiring decision-makers.
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