Large firms sustained hiring in 2025, while small firms downsized

Recent Canadian data reveals that net job creation in 2025 is overwhelmingly concentrated in large firms, while small businesses are shedding headcount. According to a report from BMO Capital Markets, large firms (with more than 500 employees) have posted a net gain of 592,000 jobs in 2025. Over the same period, small businesses (under 500 employees) have lost 300,000 jobs. 

In relative terms, this marks a dramatic shift from Canada’s traditional employment structure. As of 2023, small businesses employed approximately 5.8 million individuals accounting for 46.5 % of the private-sector labour force. Medium-sized firms employed 2.1 million, while large firms employed 4.5 million (36.3 % of the private-sector workforce). 

Despite their numerical predominance in the business landscape, small and medium-sized enterprises still represent the vast majority of firms registered in Canada. However the latest data show that employment growth is no longer coming from this broad base. 

At the same time, broader labour-market indicators are shifting. According to the latest release from Statistics Canada, the national private-sector job vacancy rate stood at 2.8 % in the third quarter of 2025, reflecting a modest but persistent level of labour demand. 

Industry-by-industry data illustrate that some traditionally high-churn sectors are cooling. In Q2 2025, vacancies fell significantly across many occupational categories: health occupations dropped by 20.7 % year-over-year, business/administration roles by 11.1 %, and trades/transport / equipment-operators by 13.9 %. 

These figures suggest a structural recalibration of where and how hiring is taking place: a shift away from many small, flexible employers toward fewer, larger, financially stable firms with sustained hiring capacity.

Implications for Staffing Firms

Firms that built their business model around high-volume placements across many small or mid-sized employers may face shrinking opportunity pools. Administrative support, customer service, light-industrial and clerical roles, historically supplied through staffing intermediaries to small businesses, are less likely to rebound strongly if small firms continue to contract.

Conversely, large employers, who now account for nearly all net job creation, present a growing opportunity. Their scale, geographic footprint, and often multi-provincial presence make them ideal clients for staffing firms capable of delivering consistent, high-quality talent at scale. Demand may concentrate on categories like digital services, technical roles, supply-chain and logistics, manufacturing, or corporate services; areas where large firms tend to invest and maintain headcount even in uncertain times.