Canadian SMEs optimistic for fall but cautious on hiring and AI
On hiring, two-thirds of SMEs said they expect to bring on new staff this fall. However, the nature of that hiring has shifted. Just 34 per cent are expanding their teams outright, while 32 per cent described their approach as selective, targeting only specific roles that address clear operational needs.
The three biggest pressures facing Canadian SME leaders right now are productivity (cited by 41 per cent), wages (39 per cent), and hiring and talent acquisition (36 per cent) — a combination that helps explain why business owners are being more deliberate rather than reactive in their workforce decisions.
The survey also captures a meaningful shift in how Canadian businesses are approaching artificial intelligence. Sixty-two per cent of respondents said they plan to increase AI investment, but the framing has changed. Rather than debating whether to adopt AI at all, leaders are now focused on how to extract practical value from the tools they deploy.
Chris Pinkerton, Managing Director of Employment Hero Canada, said the findings reflect a sector entering the second half of the year “from a position of cautious confidence.” On AI specifically, he noted: “The conversation around AI has shifted. Businesses are no longer asking whether they should invest, they’re asking how they can use AI to help existing teams work smarter.”
