Canadian Employer Confidence Index 2025 Survey

Peninsula Group conducted an annual survey of 79,000 businesses across Australia, Canada, Ireland, New Zealand, and the UK, to understand business sentiment and identify the latest trends. Survey questions are related to three key areas: business goals and concerns, staffing, and ways of working.  

A wide variety of businesses, both in size and industry, share details of their current employment practices and offer their perspective on the challenges currently facing employers. This report explores the Canadian results and how they compare globally. 

2024 was a year of change like never before for Canadian employers. Employment standards legislation has been amended in five Canadian provinces, with Ontario’s Employment Standards Act (ESA) being amended three times during the year. Employment law reform in 2024 reflected the need for enhanced protections for workers in hospitality, retail, and industries that rely heavily on temporary foreign workers. 

Employee retention is another top concern, cited by almost half of employers (64%). The sudden shift in the country’s immigration policy and rising cost-of-living has greatly impacted business's the ability of businesses to retain employees.  

 On the other hand, employers seem particularly concerned with the Canadian economy, compared to this time last year. 84% of Canadian employers cite increased costs as a challenge for 2025. Concerns about recession are not going away. However, the unique pressures businesses are under as we enter 2025 are taking their toll on many, with more than 14% simply hoping for survival.  

Another key indicator that businesses are approaching 2025 with trepidation is that many are putting recruitment on hold. Only one in twenty (11.5%) are planning to recruit over the next year, a significant decrease since 2023 (22%). It is likely that businesses are waiting to understand in more detail how changes to employment law will affect their workforce and considerations during the recruitment process. 

Download our Employer Confidence Index 2025 survey for more in-depth analysis.