The Ivey PMI still indicates expansion in May. Here is what to know.

Continued Economic Expansion

The Canadian economy demonstrated continued resilience in May 2026, as reflected by the most recent Ivey Purchasing Managers Index. The headline index rose to 58.2, up from 57.7 in April, notably exceeding market forecasts that had anticipated a cooling to 55. A reading above 50 represents an expansion in purchasing activity across both the public and private sectors, marking the steepest overall growth since September 2025. This upward trajectory indicates an acceleration in economic momentum, underpinned by steady demand and active procurement strategies among organizations nationwide.

Labor Market Resilience

The employment sub-index provides essential context for the staffing and recruitment sector. For May 2026, the employment index registered at 54.3, slightly softening from the 54.7 recorded in April. Despite this minor easing, the figure remains firmly within expansionary territory, signaling robust and sustained job growth across the Canadian landscape. The persistence of hiring momentum implies that organizations are continuing to build capacity, though perhaps at a marginally more measured pace than earlier in the spring.

For the staffing market, this steady employment growth translates to a persistent demand for talent acquisition services. Employers are actively seeking candidates to support expanding operations, maintaining a competitive environment for skilled professionals. Recruitment agencies and talent acquisition teams will likely find a stable pipeline of open requisitions, particularly in sectors driving the broader economic expansion. The data suggests an environment where human capital remains a critical focus for businesses aiming to keep pace with operational demands.