Canada’s job market is bracing for a flurry of hiring activity in 2025, with every hiring manager surveyed planning to recruit in the next six months, according to new research released by global talent services firm Morgan McKinley. But while companies are eager to grow their teams, they face mounting challenges in attracting and retaining skilled talent.
The report, based on responses from 530 businesses and 2,751 professionals, reveals a workforce on the move. Half of all professionals are actively searching for new opportunities—placing added pressure on organizations to step up their hiring game in a competitive market.
Fifty percent of employers say uncompetitive salaries were the top reason they lost candidates in the past six months. And despite this, half of Canadian companies kept salary bands unchanged in the second half of 2024.
“The Canadian job market remains highly active, with strong hiring intentions across industries,” said Ian Kinsella, Managing Director, Morgan McKinley Canada. “However, employers must address compensation and benefits concerns to attract and retain top talent.”
According to the research, 67% of employers plan to offer higher salaries for hard-to-fill roles in 2025, hinting at a possible shift in compensation strategy. Still, uncertainty looms: while half of professionals hope for a raise in the coming year, many remain unsure about their financial outlook.
Beyond pay, benefits and job security are key concerns. A majority of professionals—58%—feel neutral or dissatisfied with their current benefits package. Meanwhile, 63% say they feel indifferent or insecure in their roles, a warning sign for companies looking to keep employees engaged.
Hiring conditions in 2024 were already tight, with half of organizations describing the recruitment landscape as “very” or “quite” competitive. That intensity is expected to continue into the new year.
The full Morgan McKinley 2025 Salary Guide offers a breakdown of salary benchmarks across Canada, equipping employers with the data they need to remain competitive—and giving jobseekers a clearer picture of their earning potential.
As competition for talent heats up, Kinsella offers a clear warning: “Companies that fail to align with evolving workforce expectations risk losing their best people to competitors offering better packages and flexibility.”