2025 Canada Hiring Outlook

Firms need to hire highly skilled talent to grow their business and thrive in a challenging economy. For many employers, that’s proving to be a tough goal, and the hiring outlook for 2025 looks to be just as demanding. More than half (51%) of managers say the lack of experienced candidates will be their biggest challenge, while 46% say an inefficient hiring process will be a primary obstacle. More leaders are reassessing compensation packages and their stance on workplace flexibility to compete for talent. Others are recruiting high-potential candidates they can train or are considering other staffing strategies.

Lengthy processes lead to increased hiring woes

32% of candidates will lose interest in a role if they don’t receive a status update from an employer after 2 weeks of interviewing; 22% will wait 1 week.

However, it takes an average of 5 weeks to staff an open position.

30% of hiring managers say numerous procedures slow down the hiring process, while 26% point to unrealistic expectations about finding ideal candidates.

Taking too long to offer top candidate Taking too long to offer top candidate

Placing too much weight on technical skills Placing too much weight on technical skills

Hiring unqualified candidates to stay within salary range Hiring unqualified candidates to stay within salary range

High turnover due
to heavy workloads Higher recruitment
costs Losing candidates
to competitors Delayed or
cancelled projects High turnover due
to heavy workloads Higher recruitment
costs Losing candidates
to competitors Delayed or
cancelled projects

Workers want flexibility in where and when they work

Many professionals in Canada (44%) prefer 2-3 days per week at the office.

37% of employers are offering flexible work arrangements to attract and hire skilled candidates between now and the end of 2025.

Flexible work also helps with retention: 34% of employees say they’re not seeking a new job because they don’t want to give up their current level of flexibility.

How retirements impact staffing strategies

Companies risk losing institutional knowledge, experience and leadership skills as the baby boomer cohort nears retirement.

As more workers leave the workforce, many firms are addressing staffing gaps by upskilling employees, hiring and training high-potential candidates, and bringing in contract talent.

Many employers are also stepping up succession planning to counter future workforce disruption due to the departure of staff from critical roles.

Lack of
suitable
candidates Insufficient
upskilling
programs Retirement
of key
employees Candidates
uninterested
in leadership No
succession
plan in place Lack of
suitable
candidates Insufficient
upskilling
programs Retirement
of key
employees Candidates
uninterested
in leadership No
succession
plan in place

Responding to the rapid rise of AI

AI, machine learning and automation projects are high priorities for firms across Canada. This is driving demand for new skills — and highlighting skills gaps.

Companies can consider using technology like generative AI to help enhance employee recruitment and retention by streamlining work, reducing routine tasks and fueling innovation.

Embracing continuous learning and focusing on skill-building efforts in areas such as programming, data analysis and statistics, and machine learning is crucial.

Shift in
high-demand
skills More contract workers
or consultants Increased hiring Outsourcing of projects Shift in
high-demand
skills More contract workers
or consultants Increased hiring Outsourcing of projects

Higher salary Better benefits
and perks More flexibility Higher salary Better benefits
and perks More flexibility

Offering
hybrid jobs Offering
flexible work
schedules Increasing
starting
salaries Adding new
perks and
benefits Offering
hybrid jobs Offering
flexible work
schedules Increasing
starting
salaries Adding new
perks and
benefits

Firms use diverse strategies to address staffing challenges

As companies face hiring challenges, skills gaps and increasing project demands, they risk burnout among core staff and a decline in productivity. To access the experience they need and keep initiatives on track, employers adopt different talent strategies:

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Hiring Managers: Need more insights? Schedule a Salary Guide walk-through

Non-salary data referenced in this Salary Guide is based on online surveys developed by Robert Half and conducted by independent research firms. Respondents included hiring managers and employees from small (1-99 employees), midsize (100-999 employees) and large (1,000-10,000 or more employees) private, publicly listed and public sector organizations across Canada.