Half of Canadian companies plan to increase their employee headcounts in the first half of 2025, according to a study published by staffing agency Express Employment Professionals on Monday.
About half (51%) of the 505 Canadian hiring decision-makers surveyed indicated they plan to hire more employees. Among those, 58% cited managing increased volumes of work as the primary reason, while 45% said their top concern is filling newly created positions.
Others cited getting expertise in new areas (26%) and handling expansion into other categories or markets (26%).
Express Employment Professionals noted that while these drivers remained similar to the firm’s survey last year, the number of companies planning to increase their employee count to manage work caused by artificial intelligence (AI) increased from 10% in the first half of 2024 to 18% by the end of the year.
“Businesses are strategically positioning themselves for growth, addressing immediate needs like increased workloads and turnover, while also preparing for future challenges such as AI and cybersecurity,” said Bill Stoller, CEO of Express Employment International, in a release.
“The outlook for 2025 is promising, driven by a workforce ready to innovate and adapt.”
The survey also found that nearly three-quarters of companies (71%) feel positive about their hiring outlook in 2025. Meanwhile, 39% feel optimistic, 36% are confident and 35% are hopeful.
Brent Pollington, an Express franchise owner in Vancouver, said the positive outlook stems from a combination of factors including market conditions, perceptions of continued growth and the potential for lower interest rates.
“There is a lot of optimism in the market going into 2025,” he said in the release.
At the same time, Pollington said businesses are still facing persistent hiring challenges such as increased hiring costs and skills shortages.
“Employers are spending significant time and energy solving these issues,” he said, noting companies are having to focus more on training and development, as well as long-term succession planning.
The online survey was conducted by The Harris Poll between Nov. 11 and Nov. 26, 2024.
The survey’s findings were similar to those from a study released by business consulting firm Robert Half earlier this month.
Robert Half’s State of Canadian Hiring Survey found that 46% of companies report plans to add new permanent positions in the first half of 2025 and 49% plan to fill vacated positions. Just 5% do not plan to add new or fill vacant positions and 1% intend to eliminate positions.
The survey also revealed that 54% plan to increase the number of contract professionals to aid with projects in 2025.
Company growth (47%), turnover (44%) and project demands (41%) were the main factors influencing hiring decisions.
The online survey was developed by Robert Half and conducted by an independent research firm in December 2024. It included responses from more than 1,050 hiring managers at companies with 20 or more employees in Canada.