Holiday hiring rebounds for Canada, but small businesses stay cautious

Seasonal job postings rise as retailers see modest gains: survey

Holiday hiring rebounds for Canada, but small businesses stay cautious

Every fall, Canadian employers — especially in retail and customer service — ramp up recruitment for the holiday rush.

And holiday hiring is showing signs of life after a sluggish period, with job postings for seasonal roles up 12% year-over-year as of early November, according to Indeed.

However, this uptick comes with important caveats: demand for holiday workers remains well below pre-pandemic levels, and small businesses are largely sitting out the seasonal hiring spree, citing economic pressures and uncertain consumer spending.

Job seekers flock to seasonal roles

This year, the spike in holiday job postings is “somewhat stronger than in 2024,” breaking a downward trend that began after the pandemic, writes senior economist Brendan Bernard at the Indeed Hiring Lab.

As of November 4, 2025, postings for roles with terms like “seasonal,” “holiday,” "Santa" and “Christmas” were up 12% from a year earlier, though still down 8% from 2023 and 35% from 2022.

“The break in the downward trend is still good news for those seeking temporary employment around year-end,” he says.

The share of all Canadian job postings that are seasonal has edged up for the first time since 2022, rising from 1.23% in early November 2024 to 1.34% in 2025.

This shift appears to be linked to steady 2025 sales at brick-and-mortar retailers and a stabilization in the e-commerce share of retail sales, which has held at about 6% compared to last year, according to Bernard.

Job seeker interest in seasonal work is also climbing. The share of searches on Indeed containing seasonal terms has increased for a third straight year, reaching 3.1 per 1,000 searches in early November 2025—up from 2.5 in 2023 and 2.2 in 2022.

“Stronger interest in seasonal work isn’t a great sign for the health of the overall labour market,” says Bernard, suggesting that more Canadians are turning to temporary jobs as permanent opportunities become harder to find.

 

Small businesses scale back hiring, promos

While larger retailers may be driving the modest rebound in seasonal hiring, small businesses are approaching the holidays with caution. According to a survey by Merchant Growth, nearly half (46%) of Canadian small businesses expect consumers to spend less this season as inflation and higher everyday costs weigh on household budgets.

“Business owners are feeling the squeeze as wages, rent and supply costs continue to climb, with little sign of a rebound in consumer confidence,” says David Gens, founder and CEO of Merchant Growth.

The survey of 60 retail and foodservice businesses found that 77% are not hiring seasonal staff this year. The main reasons:

  • they can’t afford additional wages (28%)
  • it’s been difficult to find qualified workers (24%)
  • they’re uncertain about their sales outlook (15%).

Even among those expecting higher sales—55% forecast an increase over last year—most are prioritizing financial stability over expansion.

Promotional activity is also muted. Only 38% of small businesses are running Black Friday promotions, 17% are offering Cyber Monday deals, and 35% are planning Boxing Week sales. Notably, 42% said they’re not offering any discounts or promotions at all this holiday season, finds the survey.

Despite the subdued mood, some small businesses remain hopeful. More than half expect higher sales than last year, with 63% forecasting increases between 11% and 25%. Still, one in four anticipate lower sales, citing higher prices and reduced consumer spending power as key factors.

Merchant Growth also notes that 10% of surveyed businesses have cut shipments to the U.S. due to increased tariffs and regulatory barriers.

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