Survey finds that recruiting skilled employees remains significant challenge for Canadian employers
Despite the current economic climate, most Canadian businesses are staying positive, according to a recent Statistics Canada (StatCan) report.
Just over two-thirds (66.7%) of businesses in the third quarter of 2025 are very optimistic or somewhat optimistic about their outlook over the next 12 months, it finds
This is comparable with the 70.0% of businesses that reported feeling the same in the second quarter of 2025.
Over half (53.0%) of businesses expect to be able to operate for 12 months or longer if the tariffs imposed by the United States and Canada remain at their current levels. This expectation was most common among businesses in finance and insurance (66.7%) and least common among businesses in transportation and warehousing (32.8%).
However, 41.3% of businesses are unsure how long they would be able to continue to operate if the tariffs remain as they are, and 5.8% anticipate they would not be able to continue operating past the next 12 months if things do not change.
Recently, U.S. President Donald Trump imposed 35% tariffs on a range of Canadian goods.
Canadian small businesses are showing resilience in the face of economic uncertainty, with a majority expressing cautious optimism about both their current position and the future, according to a previous CIBC report.
Cost and labour challenges in Canada
StatCan’s Canadian Survey on Business Conditions, conducted from July to early August 2025, found that 62.2% of businesses expect cost-related obstacles in the next three months—a slight decrease from 65.4% in the previous quarter.
Inflation remains the most commonly cited challenge, with 45.2% of businesses identifying it as a key obstacle. This concern is especially high among businesses in accommodation and food services (56.6%), other services (54.7%), and retail trade (52.5%).
The cost of inputs, which includes labour, raw materials, and energy, is the second most expected obstacle, cited by 25.4% of businesses. This issue is most prevalent in agriculture, manufacturing, and accommodation and food services.
The survey also found that recruiting skilled employees remains a significant challenge, with 9.7% of businesses expecting it to be their most difficult obstacle in the coming months. Average hourly wages increased by 3.3% year-over-year in July 2025, following a 3.2% increase in June, reflecting ongoing competition for talent in a tight labour market.
Recently, the Canadian Federation of Independent Business (CFIB) called on the federal government to “immediately release its tariff revenue to small businesses directly and indirectly affected by trade disruptions and work quickly to resolve small business requests still tied up in the remissions process."
