A large majority of employers are taking steps to prepare for a downturn
A new survey shows that 81% of Canadian employers have already taken steps to brace for a possible economic downturn, with more than half believing a recession will occur within the next year.
The Express Employment Professionals-Harris Poll survey, released this week, found that 76% of companies are preparing for a recession, and 14% believe the country is already in one. Half of respondents expect a downturn within 12 months.
According to the poll, 93% of employers anticipate a recession would affect their operations, with 55% expecting a significant impact. About one-third (33%) of companies say they might not survive a recession this year – a figure that rises to 46% among blue-collar businesses.
Hiring plans have already shifted. Nearly one quarter (22%) are holding back on increasing headcount in 2025 due to recession concerns. If a downturn hits, 30% say they will reduce hiring, while 23% would freeze it altogether.
Preparation measures include cutting unnecessary expenses (42%), adjusting pricing or payment plans (26%), reducing inventory (25%), cross-training staff for multiple roles, (23%) and streamlining processes (22%). Other actions are leaving vacated roles unfilled (21%) and delaying raises or bonuses (20%).
However, the short-term focus comes at a cost. Sixty-two percent (62%) of respondents say recession planning has diverted attention from long-term strategies.
Despite this, the outlook is not entirely bleak. Seventy-one percent (71%) believe they will be in a better financial position at year’s end than at the start, while 54% view a possible recession as more of a growth opportunity than a threat.
When asked what would help them navigate a downturn, 47% cited training and upskilling programs, 33% pointed to mental health resources, another 33% favoured flexible staffing solutions, and 28% sought clearer communication from leadership.
“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 chairman of Express Employment International. “By streamlining operations and investing in versatile talent, businesses can position themselves for long-term success in any environment.”
The survey was conducted online from June 2 to 18 among 500 Canadian hiring decision-makers. Express Employment Professionals operates franchises across Canada and in several other countries, providing staffing and workforce solutions globally.
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