TORONTO, July 08, 2026 (GLOBE NEWSWIRE) — More Canadian employers are heading into the second half of 2026 with plans to hire, but many are struggling to find the workers they need, according to a new Express Employment Professionals-Harris Poll survey.
Positive Hiring Outlook
Three-quarters of Canadian hiring managers (74%) feel positive about their company’s hiring outlook for the remainder of 2026, a significant increase from 67% in the fall of 2025. Employers most commonly describe their outlook as optimistic (39%), hopeful (35%) and confident (30%).
Hiring Plans Driven by Business Needs
That positivity is translating into hiring plans, with 43% of companies planning to increase the number of employees, similar to the fall of 2025 (44%). Among companies planning to increase headcount, the top reasons are practical business needs: 56% cite increased volumes of work, 44% say they are filling newly created positions, 29% are replacing positions open due to employee turnover, and 29% are staffing expansion into other categories or markets.
Unfilled Positions on the Rise
Yet the labour market continues to show signs of a stubborn mismatch: 32% of hiring managers say their company currently has open positions they cannot fill, up from 29% in the fall of 2025. This indicates that despite strong hiring intentions, many employers are struggling to connect with suitable candidates.
Not All Companies Are Expanding
Not all companies are adding staff. About half of hiring managers (47%) say their company plans to maintain current staffing levels in the second half of 2026, while 8% plan to reduce their employee count. Among companies planning to decrease staffing levels, the leading reasons point to cost and efficiency pressures: 60% cite the need to reduce costs, 46% point to increased use of automation, technology or AI, and 31% say their company is not replacing or backfilling employees who leave.
Widespread Hiring Challenges
Even companies optimistic about hiring are preparing for complications. Most hiring managers (86%) expect to face challenges over the remainder of the year, including: finding qualified candidates (45%), navigating AI in recruitment and hiring processes (28%), difficulty planning labour needs due to recession or economic downturn concerns and/or changes in government policies (20%), and increased competition in the job market (20%).
According to the survey, employers are neither pulling back broadly nor hiring with ease. Instead, many are trying to expand while working through candidate shortages, changing technology and uncertainty that can make workforce planning more difficult. For the labour market, that means job opportunities remain available, but the path from open role to filled position is still complicated. For employers, the challenge is not only deciding whether to hire, but how clearly and quickly they can connect with the right candidates.
