CSJ Hiring Index falls to 4.8/10, an indication of muted hiring appetite heading into the fall

CSJ Hiring Index - August 2025

The August CSJ Hiring Index reads 4.8/10, down from 5.4 in July. This softening reflects weaker PMIs, a jump in unemployment, and job losses across key service industries. Forward-looking sentiment is cautious, pointing to muted hiring appetite heading into the fall.

Labour Market Insights: What the Index Means

The August update highlights a cooling in Canada’s hiring appetite. While the Ivey PMI remains barely in expansion, both manufacturing and services slipped back into contraction. The Labour Force Survey reported a loss of 66,000 jobs and an unemployment rate rising to 7.1%. Vacancies have eased, wage growth remains modest at 3.2%, and SMEs are signalling caution. Together, these indicators explain the drop in the CSJ Index to 4.8, the lowest in over a year.

For staffing and recruitment, this signals more selective demand. Opportunities remain in construction and infrastructure-linked roles, while administrative, healthcare, and warehousing provide modest support. Manufacturing and services softness will temper permanent hires, pushing firms to rely more on temporary and contract solutions. Regionally, Ontario and British Columbia show rising slack, while Quebec is steadier, providing a relatively more resilient market for placements.