More than a third of SMEs expect to expand hiring over next six months
Canadian small and medium-sized businesses (SMEs) are entering the second half of 2026 with a cautiously optimistic outlook, according to new survey.
The survey of 600 Canadian senior business leaders by Employment Hero finds that 58% of SMEs are optimistic about their business outlook over the next six months, compared to just 18% who expressed pessimism.
More than a quarter (26%) of SMEs identified expansion or growth as their primary financial focus for the next six months, while 41% said their priority is maintaining a balance between growth and operational stability.
Hiring for second half of 2026
Workforce growth remains a priority for many Canadian employers, though the days of broad-based hiring appear to be giving way to a more selective approach. More than a third (34%) of respondents said they expect to expand hiring over the coming six months, while another 32% said they plan to hire selectively rather than aggressively.
Chris Pinkerton, managing director of Employment Hero Canada, framed the shift as a sign of maturity rather than retreat.
"Businesses haven't stopped investing — they're simply becoming much more intentional about where they invest," he said. "That means hiring strategically, improving productivity and looking for smarter ways to grow."
Canada's labour market added 75,000 jobs in July, pushing the unemployment rate down to its lowest point in two years, according to Statistics Canada's Labour Force Survey. The unemployment rate fell 0.1 percentage points to 6.4% in July — the third consecutive monthly decline and the lowest rate recorded since July 2024.
Productivity tops list of pressures
Not everything is rosy. The survey by Employmnent Hero revealed a set of persistent operational challenges weighing on SMEs as they head into the busy fall season.
When it comes to the top business pressures, they named:
- productivity (41%)
- wages (39%)
- hiring and talent acquisition (36%).
Technology spending is one area where SMEs are not pulling back. Nearly two-thirds (62%) of respondents reported increasing their investment in artificial intelligence.
