It’s a wrap! Here’s the year in review and what’s coming to us in 2026
As the snow settles across the country and the frantic pace of the final quarter begins to ease, I find myself reflecting on a year that challenged our industry to redefine its value proposition. For those of us at the Canadian Labour and Staffing Journal, 2025 was a year of deep advocacy and presence on the world stage. From participating as panelists at the Annual Convention of the Canadian Chamber of Commerce, where we tackled the pressing realities of the labour market gaps, to contributing to the G7 Employment Workstream hosted right here in Canada, our mission has been clear: ensuring that the voice of the staffing and the recruitment industry is heard by those shaping the future of work.
The story of the Canadian labour market this past year was one of cooling temperatures and shifting foundations. We began the year under the shadow of high interest rates and a "wait-and-see" approach from major employers. The latest Labour Force Surveys tell the tale of a market that has finally found its floor. We moved away from the volatile "Great Resignation" and entered a period of structural realignment. While the unemployment rate ticked upward as the population grew earlier this year, the real story was the tightening of the "Temporary Resident" tap. The federal government’s pivot on immigration targets signaled the end of a long era of rapid labour supply growth, forcing firms to look inward and prioritize the retention and upskilling of the existing talent pool.
Adding a layer of complexity to this year’s narrative was the significant impact of trade tariffs. As cross-border tensions escalated, we saw a direct ripple effect on the labour market, particularly in manufacturing hubs like Windsor and the GTA. Tariffs didn't just increase costs; they injected a sense of "hiring paralysis" into trade-dependent sectors. According to the latest data, industries most exposed to these trade disruptions saw payroll employment dip by nearly 2%, while more insulated sectors like healthcare continued to grow. For many of us, this meant navigating sudden hiring freezes in automotive and steel, while simultaneously helping clients manage the logistics of "Work Sharing" programs to keep their skilled talent on the payroll during the height of the trade uncertainty.
Throughout the year, we watched the Ivey and S&P Global PMIs like a pulse monitor. For much of the spring and summer, the manufacturing sector felt the pinch of both tariffs and high borrowing costs. However, as the Bank of Canada began its cautious descent toward a neutral interest rate (settling near 2.25%), we saw a glimmer of a rebound. By late autumn, the services sector showed signs of expansion, and job vacancies, while lower than the historic highs of previous years, began to stabilize in high-value sectors like green energy and specialized tech.
Looking ahead to 2026, the narrative is all about "cautious equilibrium." We are entering a year where the economic headwinds are shifting to tailwinds, albeit gentle ones. With interest rates expected to hold steady at a more manageable level, the "capital freeze" that stalled many corporate plans is beginning to thaw. We anticipate that 2026 will be the year of the Strategic Hire. Clients are no longer looking for "warm bodies" to fill gaps; they are looking for specific, transformative skill sets to help them integrate AI and automate legacy processes. The staffing firms that will thrive in this next chapter are those that act as true consultants, helping clients navigate a smaller, more competitive pool of specialized talent in an era of slower population growth.
As we look toward the horizon, the outlook is bright for those who have weathered the transitions of the last twenty-four months. The Canadian economy is proving its resilience, and the essential role the staffing ecosystem plays in keeping our industries moving has never been more evident.
On behalf of the the Journal, I want to thank you for your continued support and for the vital work you do every day to build Canada’s workforce. We are incredibly proud to have you as members of our community.
Wishing you and your loved ones a joyful, restful holiday season and a prosperous New Year. Here is to a 2026 filled with growth, partnership, and success!
Minh Tri Dang - Editor-in-Chief