Hiring appetite stable but not accelerating - CSJ Hiring Index
Next 6 months hiring appetite - CSJ Hiring Index - July 2025
Write to: Minh Dang mdang@staffingjournal.ca
The July CSJ Hiring Index reads 5.4/10, a moderate score that suggests hiring appetite is stabilizing but not accelerating. Purchasing managers are expanding activity, but sector-specific signals remain mixed, highlighting selective opportunities rather than a broad-based boom.
Labour Market Insights — What the Index Means
The CSJ Index underlines the contradictions running through Canada’s economy. The Ivey PMI at 55.8 shows renewed momentum in purchasing activity, yet manufacturing remains in contraction (46.1) and services are still shy of growth (49.3). This divergence tells staffing firms that demand is returning, but unevenly. Logistics and warehousing posted gains, while construction and cultural industries contracted.
The Labour Force Survey’s net loss of 41,000 jobs and an unchanged 6.9% unemployment rate confirm that recovery is selective, not uniform.
For staffing and recruitment, the opportunities are clear. Firms should lean into services, logistics, and administrative roles where demand is beginning to pick up, while staying cautious in manufacturing and construction. Youth unemployment at multi-year highs creates a pipeline of entry-level candidates, ideal for ‘hire-ready cohorts’ that staffing firms can train and deploy quickly. At the same time, lingering cost pressures mean employers will favour flexible, project-based solutions to manage headcount risk.
CSJ Staffing Playbook
• Lead with temp and project-based placements in goods-related sectors while offering conversion options.
• Expand permanent recruitment pipelines in services sectors such as finance/admin, healthcare support, and digital operations.
• Use regional strategy: deeper benches in Alberta and B.C. where slack is building; faster turnaround in Quebec and Ontario metros.
• Develop ‘hire-ready’ youth cohorts to meet cost-sensitive client demand.
• Innovate pricing with subscription or outcome-based models, linking fees to productivity and retention gains.
METHODOLOGY
The CSJ Index blends forward-looking indicators at 60% weight with current conditions at 40% weight.
Each input is normalized on a 0–10 scale, averaged, and rounded to one decimal. Interpretation bands:
0–3 = very weak;
3–4 = weak;
4–6 = moderate;
6–8 = strong;
8–10 = overheating.