'Overall industry may have turned a corner with a shift toward expansion'
Canadians appear to be relying more on temporary staffing agencies since last year.
June marked the fourth month of growth, according to the Association of Canadian Search, Employment and Staffing Services (ACCESS).
Its Canadian Staffing Index reached a value of 85 in June 2025, reflecting an 11.8 per cent increase compared to June 2024; month-over-month, the index also increased by 3.7 per cent.
The number of working days for workers from temporary staffing agencies also rose by five per cent year-over-year.
“This is the fourth consecutive month of year-over-year growth in billed hours and suggests that the overall industry may have turned a corner with a shift toward expansion,” says Timothy Landhuis, vice president of research at SIA.
Ottawa has previously temporarily banned some employers from accessing the Temporary Foreign Worker (TFW) Program.
New rules for temporary help agencies, recruiters
The growing reliance on staffing agencies comes after Ontario made changes to the rules governing these agencies and recruiters in 2024.
Since July 1, 2024, changes to the Employment Standards Act, 2000 (ESA) took effect, requiring the following:
- Temporary help agencies (THAs) are required to hold a licence to operate. Clients are prohibited from knowingly engaging or using the services of a THA unless the agency holds a licence.
- Recruiters are required to hold a licence to act as a recruiter. Employers, prospective employers, and other recruiters are prohibited from knowingly engaging or using the services of any recruiter that does not hold a licence.
Ontario’s maintains a website that lists all applicants seeking a licence to operate as a THA or to act as a recruiter, as well as all licensed THAs and recruiters, along with the status of their licence, any terms and conditions that apply, and any other information that is required to be published pursuant to the ESA or its regulations.
Even if a THA is located outside of Ontario but assigns employees to work in Ontario, the licensing requirements apply.
Complying with staffing agency legislation
Employers “will want to be sure that they are engaging with recruiters or temporary help agencies who are licensed because if not, they could be found in violation based on these regulations and subject to fines. So there definitely is a reason to want to be in compliance,” says Nicole Naglie, an associate in the labour and employment group at McCarthy Tétrault in Toronto, speaking to Canadian HR Reporter previously.
“It shouldn't change the overall landscape of the availability of temporary help agencies and recruitment agencies. I think it gives the government a little bit more ability to regulate the industry, and hopefully ensure that workers are more protected than maybe previously they were, as often people who are working through temporary help agencies are more of the vulnerable population.”
Also, since July 1, 2024:
- Clients of temporary help agencies are prohibited from knowingly engaging or using the services of a temporary help agency unless the agency holds a licence to operate as a temporary help agency.
- Employers, prospective employers, and other recruiters are prohibited from knowingly engaging or using the services of any recruiter unless the recruiter holds a licence to act as a recruiter. This prohibition is in effect unless the transitional rule applies to the recruiter.
