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Majority of Canadian Employers Brace for Recession — Hiring Plans Shift as Uncertainty Grows

Canadian employers are tightening their belts as fears of a recession mount, with the majority already adjusting hiring strategies to prepare for a potential downturn.

A new Harris Poll survey, conducted on behalf of Express Services Inc., found that 76% of Canadian companies are bracing for a recession in 2025. Among them, more than one in five (22%) have paused hiring altogether for the rest of the year. Another 30% say they’ll scale back hiring if conditions worsen, while 23% admit they’ll freeze new roles entirely.

It’s not just hiring that’s taking a hit. The survey of more than 500 employers shows 81% are already taking proactive measures to weather economic turbulence:

  • 42% are cutting unnecessary expenses
  • 23% are cross-training staff to handle multiple responsibilities
  • 22% are streamlining processes
  • 21% are leaving roles unfilled when staff depart
  • 20% are delaying raises or bonuses

While many businesses are pulling back, leaders also recognize what could help them survive — and thrive — through a slowdown. Training and upskilling programs (47%), mental-health support (33%), and clearer communication from leadership (28%) were cited as critical tools to maintain resilience.

“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 of Express Services.

In other words, Canadian businesses are entering 2025 with caution, but those willing to adapt, invest in versatile talent, and streamline operations may come out stronger on the other side.

What This Means for Investors

Periods of economic uncertainty can feel unsettling, but they also highlight the importance of stable, asset-backed investments. While employers are cutting back on hiring, opportunities remain for investors who want to protect their wealth and generate consistent returns.

At Lendworth Mortgage Investment Corporation, we focus on secured real estate lending — mortgages backed by tangible Canadian property. Unlike equities that can swing with corporate hiring freezes or consumer confidence, our model targets steady annual yields of 9%+ while giving investors peace of mind that their funds are supported by real assets.

As businesses prepare for leaner times, investors don’t need to sit on the sidelines. With Lendworth, you can invest in a strategy built to withstand volatility — and even thrive in it.

👉 Learn more about how Lendworth can help protect and grow your wealth in any market at www.lendworth.ca.

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