‘The mismatch between open jobs and available talent is not something businesses can afford to ignore’
Human resources professionals may be in for a busier back half of 2026, as new survey data shows more Canadian employers plan to hire despite an increasing struggle to fill open positions.
Overall, 74% of Canadian hiring managers feel positive about their company's hiring outlook for the remainder of 2026, up from 67% in the fall of 2025.
Employers most commonly described their outlook as optimistic (39%), hopeful (35%) and confident (30%).
That optimism is translating into hiring plans, with 43% of companies planning to increase headcount, similar to the 44% reported last fall, reports Express Employment Professionals.
Vacancies remain difficult to fill
Despite the positive outlook, 32% of hiring managers say their company currently has open positions it cannot fill, up from 29% in the fall of 2025, according to Express’ report, based on a survey of 508 Canadian hiring decision-makers conducted in May.
Among companies planning to add staff, 56% cited increased volumes of work, 44% pointed to newly created positions, and 29% said they were replacing employees lost to turnover.
Another 29% said they were staffing expansion into other categories or markets, suggesting growth-related hiring is occurring alongside routine replacement hiring.
Also, most hiring managers (86%) expect to face hiring challenges over the remainder of 2026, according to the survey.
The top challenges cited by Canadian hiring decision-makers include:
- finding qualified candidates (45%)
- navigating AI in recruitment and hiring processes (28%)
- planning labour needs due to recession concerns or policy changes (20%)
- increased competition in the job market (20%).
"The mismatch between open jobs and available talent is not something businesses can afford to ignore," said Bob Funk Jr., CEO, president and chairman of Express Employment International. "Job seekers have an opportunity to build skills in areas where employers need help most, and companies have an opportunity to invest in people who show potential. The right worker may not always arrive ready-made, but with the right training and support, they can become the right fit."
Some companies holding steady or cutting
Not every employer is expanding. Almost half (47%) of hiring managers said their company plans to maintain current staffing levels through the second half of 2026, while 8% plan to reduce their workforce.
Among companies planning to decrease staffing, 60% cited the need to reduce costs, 46% pointed to increased use of automation, technology or artificial intelligence, and 31% said they are not replacing employees who leave, found the Express survey.
The findings indicate cost and efficiency pressures, rather than declining demand, are the primary drivers behind planned staff reductions.
The federal government, British American Tobacco and Microsoft have previously announced mass layoffs.
