Survey reveals firms cutting costs, shifting hiring plans and seeking growth despite downturn fears
Nearly one third of Canadian companies say they may not survive a recession this year, with that figure rising to 46 percent among blue-collar employers, according to an Express Employment Professionals-Harris Poll survey.
“The most resilient companies don’t just react to economic shifts; they use them as catalysts to become more efficient,” said Bob Funk Jr., CEO, president and chair of Express Employment International.
“By streamlining operations and investing in versatile talent, businesses can position themselves for long-term success in any environment.”
The results show 76 percent of companies anticipate a recession, with 51 percent expecting it within the next 12 months and 14 percent believing Canada is already in one.
Ninety-three percent said a recession would impact their operations, and 55 percent anticipate a significant effect.
Concerns about an economic downturn are already shaping workforce strategies.
Twenty-two percent of companies reported they are not hiring or increasing headcount this year due to recession fears.
If a recession occurs, 30 percent would reduce hiring and 23 percent would freeze it altogether.
Eighty-one percent of employers have implemented preparations, including cutting unnecessary expenses (42 percent), adjusting pricing or payment plans (26 percent), reducing inventory (25 percent), cross-training employees for multiple roles (23 percent), streamlining processes (22 percent), leaving vacated roles unfilled (21 percent) and delaying raises or bonuses (20 percent).
This preparation comes at a strategic cost, as 62 percent said it has taken time away from efforts to improve their organisation’s long-term future.
Despite these challenges, 71 percent of employers believe they will end the year in a stronger economic position than when it began.
More than half, or 54 percent, see a potential recession as more of a growth opportunity than a threat.
Hiring managers identified training and upskilling programs (47 percent), mental health resources for employees (33 percent), flexible staffing solutions (33 percent) and clearer communication from leadership (28 percent) as tools to help them through a downturn.
