Good morning,
This week, a special focus on the impact of AI on entry-level jobs, an analysis of the main recipients of federal funding in the IT staffing and consulting space, a quick update on the services industry and the impact of trade talks on staffing. Enjoy!
Minh Dang - Editor in Chief - The Canadian Labour and Staffing Journal
Services companies see further contraction, hiring pursued on select industries
TORONTO – July 6, 2025 — Canada’s services sector is slipping deeper into contraction territory, with the latest Services PMI dropping to 44.3 in June, down from 45.6 in May. This marks the seventh straight month of decline, reinforcing fears that the economic softening is broadening and increasingly weighing on employment decisions.
The state of trade talks and their impact on the staffing industry
OTTAWA — As Canada races toward a self-imposed July 21 deadline to reset its trade relationship with the United States, the country’s economic pulse continues to weaken. The latest Purchasing Managers’ Index (PMI) readings released this week show deepening contractions in both manufacturing and services sectors, raising fresh concerns for employment and labor market stability across the country.
IT staffing and consulting firms who signed the most federal contracts in 2024
The federal government remains one of the largest purchasers of IT staffing and consulting services in Canada. In 2022, contract awards in this category peaked at $3.5 billion—a substantial increase from $2.9 billion in 2021—as firms faced acute talent shortages and pent-up demand following the reopening of the economy.
AI-sensitive jobs trend far below pre-pandemic levels, and are likely never recovering.
As Canada continues to navigate economic uncertainty, a closer look at the job market reveals a striking imbalance in recovery across occupations. While overall employment and population have grown since the pandemic, several job categories—particularly those sensitive to artificial intelligence (AI) and automation—have yet to return to pre-pandemic levels.
Entry-level jobs are quietly vanishing. And AI is holding the key.
Imagine graduating from school, full of energy and ambition, only to find that the traditional “starter job” has quietly vanished. For today’s new workforce entrants, that’s not just a frustrating job search—it’s a growing structural problem.