What happened
Canadian employers are more cautious going into the third quarter, as reported by Talent Canada. The report draws on ManpowerGroup's Employment Outlook Survey of more than 1,000 Canadian employers. The Canada Net Employment Outlook for Q3 is 12 per cent. That is down 9 points from the previous quarter and down 15 points from a year ago.
The split behind that number matters. 29 per cent of organizations plan to increase staff, down from 43 per cent last quarter. 47 per cent plan to keep headcount where it is, and 21 per cent expect reductions. Planned increases are mostly tied to company expansion. Planned cuts are mostly tied to economic challenges.
By sector, construction and real estate (22 per cent) and manufacturing (14 per cent) report the strongest plans, followed by professional, scientific and technical services (13 per cent). Hospitality is the most cautious, at its lowest reading in more than three years. Outside the North, where the sample is too small to be statistically significant, regions posted positive outlooks but fell 20 to 23 points from Q2.
On hiring tools, 59 per cent of employers named a person reviewing resumes as their most valued resource, ahead of every AI or automated option. The skills in highest demand were communication and teamwork (64 per cent), professionalism and work ethic (61 per cent), and critical thinking (61 per cent).
Why it matters if you are hiring
A lower outlook is not a freeze. Most employers are holding or adding, and they are being choosier. That means fewer open requisitions and higher expectations for each one.
If you are hiring in manufacturing or construction-related roles, you are in the stronger part of the market, but you are likely competing with fewer, more deliberate rivals. Candidates who see fewer openings tend to apply more carefully and weigh offers longer. Slow decisions cost you good people.
The survey also points to how to screen. Employers still trust human review over automated screening, and the skills they pay a premium for are about working with others and solving problems. Job postings and interviews that test for those things, not just a keyword match, will serve you better in a cautious quarter.
If you plan to reduce or hold, consider where a single well-chosen contract hire could cover a gap without adding permanent headcount.
One thing to do this week
List every open role and mark each as must-fill now, can wait, or could be covered by contract. For the must-fill roles, write down the two or three people skills that matter most and build an interview question for each, then agree on a decision deadline with your hiring team.
Traverse has placed operations, manufacturing, finance and other professionals with Canadian employers since 1997, and we help hiring teams fill the roles that cannot wait, on contract or permanent.