The number of Canadians receiving employment insurance benefits jumped sharply in April, raising new questions about the state of the job market—and setting the stage for short-term shifts in the staffing industry.
According to new figures from Statistics Canada, more than 520,000 Canadians were collecting regular EI benefits in April, an increase of 17,000 or 3.4% from the previous month. The rise was widespread, affecting nearly every province and all major age groups.
For staffing firms, the data tells two stories at once.
On one hand, the increase in EI claims means more people are actively looking for work. For recruiters and employment agencies that have struggled with talent shortages in key sectors like skilled trades, logistics, and business services, this growing pool of available workers could help ease persistent recruitment pressures. It’s especially relevant in places like Ontario, Quebec, and British Columbia—three provinces that saw some of the biggest spikes in benefit recipients.
But on the other hand, the EI surge also reflects deeper soft spots in the economy. The rise in claims is a clear sign that some employers are still cutting back on hiring or trimming their workforces—especially in regions tied to manufacturing and trade. Windsor, Ontario, for instance, saw its EI rolls nearly double in just one month, largely due to layoffs in the automotive sector.
That’s where the uncertainty comes in. Staffing firms are operating in a delicate environment: more candidates are available, but fewer companies may be ready to hire them.
The year-over-year figures paint a similar picture. EI claims were up 12.7% compared to April 2024, and the increase wasn’t limited to any one demographic. Men and women, younger workers, and those over 55 all saw their numbers rise. The trend suggests that this isn’t just a blip—it may be part of a broader cooling in the labour market.
For staffing firms, agility will be key. With demand uneven across sectors, firms that can quickly match available workers with roles in healthcare, public administration, or education—sectors that have remained relatively stable—may fare better than those relying on manufacturing or retail.
Pay dynamics may also shift. With more people seeking work, some employers could regain leverage on wages, putting pressure on agencies to manage client expectations while still offering fair compensation to candidates.
Still, there are openings to seize. Contract roles, temp-to-perm arrangements, and project-based work may become more attractive options for both employers and workers navigating a period of uncertainty.
In this evolving landscape, the firms that succeed will likely be those that move fast, communicate clearly, and adapt their offerings to fit a job market that’s sending mixed signals.
For now, the line at the EI office is growing—but so is the opportunity for staffing firms to play a stabilizing role.