Political Uncertainty and Rising Costs Prompt Canadian Employers to Delay Hiring
A mid-2026 survey by Express Employment Professionals and The Harris Poll finds that political uncertainty and rising costs are causing some Canadian employers to pause hiring, while job seekers also report negative impacts on their employment searches.
Political uncertainty is leading some Canadian employers to put hiring plans on hold, according to a survey conducted online within Canada by The Harris Poll on behalf of Express Employment Professionals. 
The Job Insights survey, which polled 508 Canadian hiring decision-makers from May 15 to June 1, 2026, found that close to two-thirds (60%) of hiring managers say the current political climate affects their company. Only 20% reported a positive impact, while 40% described the effect as negative.
One in five (20%) hiring managers identified planning labour needs as a major challenge for the remainder of the year due to recession concerns and government policy changes. Among companies planning to reduce or not increase headcount, 21% pointed to recession concerns, 14% said they are waiting to hire until they see the outcomes of changes in government policies, and 11% are waiting for the economy to return to normal before hiring.
Rising costs are also weighing heavily on businesses. According to the press release headline, rising costs affect 72% of companies’ ability to operate or grow, while the survey body text states that almost two-thirds (61%) of hiring managers say rising costs have impacted their company’s ability to operate or grow. Of those citing an impact, 48% reported it as negative and 13% as positive.
Wages and compensation were identified as the area most impacted by recent cost increases at 38%, followed by raw materials and inventory (33%), transportation and logistics (32%), and hiring budgets (29%). Additionally, 29% of hiring managers said their company would not be able to survive much longer if wages or costs continue to increase quickly, down from 40% in spring 2022.
Job seekers are experiencing similar pressures. The Job Seeker Report, conducted online within Canada by The Harris Poll on behalf of Express Employment Professionals from May 19 to June 8, 2026, surveyed 508 Canadian adults ages 18 and older who are employed but looking for a new job or not employed and looking for work. 
Among those surveyed, 36% of job seekers said politics has negatively affected their ability to find a new job. Furthermore, 92% said rising costs have had an impact on their decision to look for a new job, with 71% describing that impact as moderate or substantial.