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Labour Market Outlook 2025 into 2026: 4 Trends You Can’t Ignore

Salary and hiring trends Labour Market Trends Article Research and insights
As we head into the final stretch of the year, Canada’s labour market is evolving. Employers are prioritizing skills-based hiring, offering competitive pay for specialized talent. At the same time, professionals are entering salary discussions with growing confidence—80% say they’re ready to negotiate. However, with economic pressures top of mind, managers are finding it increasingly challenging to meet expectations. As a result, total compensation packages, beyond just salary, are becoming a key factor in attracting and retaining top talent. Discover more insights: 2026 Canada Salary Guide From Robert Half Looking behind the numbers, there are deeper patterns reshaping how organizations attract, develop and retain talent and how professionals chart their career paths. Employers and job seekers will want to keep the following four trends top of mind as they navigate the labour market through the end of this year and into 2026.

Skilled talent shortages continue to influence employers’ hiring plans

View the report now In today’s complex, evolving labour market, Robert Half’s research shows businesses of all sizes plan to expand their teams in the second half of 2025. However, many employers are struggling to find the candidates they need with the specialized skills required for their business priorities, including digital transformation That challenge is intensifying as AI capabilities, data literacy and familiarity with evolving regulatory frameworks are becoming baseline requirements for many roles. The demand for soft skills—including communication, adaptability and critical thinking—also continues to rise. Employer tips: Focus on potential and trainability when evaluating candidates. Use targeted onboarding and development programs to build the precise capabilities your business needs, and create clear internal career pathways to help retain the talent you’ve invested in. Job seeker tips: Emphasize your ability to learn quickly, and your commitment to growing skills and knowledge continuously. Share examples of building new expertise—whether through certifications, cross-training or on-the-job experience—and highlight achievements that show you can deliver results even when coming into a new role with skill gaps to bridge. See Robert Half’s midyear Demand for Skilled Talent report for exclusive data on Canadian hiring trends.

AI and automation are redefining roles—not replacing them

Many organizations are still in the early stages of AI adoption, using the technology to streamline workflows, support decision-making and handle high-volume, low-complexity tasks. But the more profound shift is happening at the role level: As AI becomes more integrated into daily work, jobs are being redefined to combine technical capabilities with human judgment. The pace of that transformation often depends on company size. Small and midsize businesses tend to adopt automation more selectively, using AI capabilities for specific tasks or teams. For larger enterprises, AI adoption is rarely simple. Governance, compliance and workforce readiness add layers of complexity as these businesses work to reengineer their workflows at scale. Employer tips: Identify where AI can automate routine or data-heavy tasks, and redesign roles so employees can focus on high-value work—such as strategy, innovation and complex decision-making. Provide targeted training to help teams apply AI effectively and responsibly. Job seeker tips: Show how you’re using AI to solve problems, and not just following prompts. Highlight projects where AI tools helped boost your productivity, accuracy or creativity. Also, be ready to explain how you promoted quality, relevance and responsible use. Staying current on AI trends in your field will help you anticipate role shifts and stay ahead of the curve. Discover how digital transformation is impacting certain industries: 2026 Finance and Accounting Salary Guide Trends 2026 Technology Salary Guide Trends 2026 Marketing and Creative Salary Guide Trends 2026 Legal Salary Guide Trends 2026 Administrative and Customer Support Salary Guide Trends 2026 HR Salary Guide Trends

Hybrid work is amplifying the importance of soft skills

Remote and hybrid work are now commonly supported in many organizations. But making these arrangements successful still takes deliberate effort, especially when it comes to company culture, cohesion and collaboration. Sustaining a strong sense of team in a distributed work environment requires clear communication, active engagement and adaptable leadership. Succeeding at all the above is well worth it for employers seeking to hold on to valued talent in an evolving labour market. A recent Robert Half survey of over 1,100 workers across Canada, shows that 65 per cent don’t plan to look for a new job specifically because of two reasons: their current job offers a level of flexibility they don’t want to lose and they like the company culture and/or have a positive relationship with their manager.   Employer tips: Identify which types of work truly benefit from in-person collaboration, and which can be handled (and managed) just as effectively remotely. Then, invest in tools, workflows and leadership development that helps build connection, accountability and trust across distributed teams. Job seeker tips: Showcase your ability to thrive in a hybrid work environment. Use examples such as how you’ve contributed to the success of cross-functional remote projects or helped improve collaboration with teammates, to demonstrate strong communication, follow-through and engagement.
Line graph of Canadian Year-over-year online job posting trends Canadian Year-Over-Year Online Job Posting Trends Q2 2023 Fully on-site: 76% Hybrid: 15% Fully Remote: 9% Q2 2024 Fully on-site: 61% Hybrid: 27% Fully Remote: 12% Q2 2025 Fully on-site: 63% Hybrid: 28% Fully Remote: 9% Source: Robert Half analysis of over 163,000 new Canadian job positions provided by TalentNeuron Copyright 2025 Robert Half Canada Inc

Internal talent development is becoming a higher priority

The shift toward reskilling and internal mobility is both strategic and practical. By developing the existing workforce, companies can staff critical roles faster and reduce hiring costs while also boosting employee retention and building future-ready teams. In the first half of the year, many organizations expanded learning and development programs focused on digital skills, leadership readiness and cross-functional collaboration. Some have also steppedup efforts to help employees visualize career paths and long-term growth within the company. Employer tips: The payoff of investing in employees’ development is twofold: stronger talent retention and a workforce better prepared to meet your business’ future demands. Internal mobility movements, from job rotations to promotions, also supports succession planning and reduces the risk of skill shortages derailing critical projects and business priorities. Job seeker tips: Reskilling and upskilling are key to building long-term career value. Seek out employers that actively invest in employee development through training, certifications and stretch assignments. Also, take the initiative to grow your capabilities independently, especially in areas aligned with emerging business needs, to show you are adaptable and forward-looking. Learn more about Succession and Pipeline Planning

More labour market trends to monitor in the months ahead

Access the Canada Salary Guide Expect these emerging trends to impact companies’ approaches to talent recruitment and management through the end of this year, and likely into 2026: Return-to-office strategies will sharpen: Many organizations are already moving from loose flexible work guidelines to clear expectations on office attendance—specifying how many days, which roles require presence and how exceptions work. Decisions about the “where” of work are increasingly guided by data on productivity, collaboration and engagement, with some companies targeting in-person days for high-impact activities like brainstorming or client meetings, while others call for more regular attendance to reinforce company culture. Workforce planning will take the long view: More organizations are approaching talent recruitment like a long-term investment. They are identifying the skills they will need in the next three to five years and building pipelines through succession planning, targeted upskilling and other strategies. Workforce analytics tools are helping employers to forecast turnover, pinpoint skills and knowledge gaps, and guide proactive training before shortages emerge. Interim and project-based hiring will continue to expand: Economic uncertainty and specialized skill demands are prompting many companies to lean more on contract professionals. Businesses are seeking flexible talent solutions for projects ranging from enterprise system implementations to cybersecurity initiatives. Compensation conversations will evolve: Pay transparency is gaining momentum, with some provinces requiring salary ranges in job postings in the coming months. Many employers are viewing this approach as a source of competitive advantage, and as a way to attract top talent. Beyond base pay, total compensation packages (which includes bonuses, benefits, wellness programs, flexible schedules and development opportunities) are becoming central to candidate decisions. Regular pay reviews are also helping companies strengthen retention and keep compensation levels aligned with market expectations. Explore salaries and trends by profession in Robert Half’s latest Salary Guide.

Continue to stay in step with labour market trends with Robert Half

Go to Labour Market Overview In the months ahead, the Canadian economy and labour market will continue to evolve. That makes it even more important for employers and job seekers to gather data and insights from reliable sources to develop a complete view of hiring conditions. Industry reports, recruiting trend analyses and internal workforce metrics can all provide valuable context. Check out the monthly Robert Half Labour Market Overview to access expanded coverage on industries hiring, what’s driving employers’ hiring challenges and more.