As Canadian businesses head into the second half of the year amid ongoing economic uncertainty, new research from Employment Hero, the global AI-powered employment platform, suggests SMEs are entering Q4 with cautious optimism – continuing to invest in talent and AI while taking a more disciplined approach to growth, hiring and productivity.
The inaugural Employment Hero SME Pulse, a quarterly survey of 600 Canadian senior business leaders, found 58% of SMEs are optimistic about their business outlook over the next six months, compared to just 18% who are pessimistic. At the same time, businesses are taking a measured approach to growth, balancing hiring and investment decisions against continued economic uncertainty.
Hiring remains a priority, but employers are becoming increasingly selective. More than one-third (34%) of SMEs expect to expand hiring over the next six months, while another 32% say they plan to hire selectively, suggesting businesses continue to invest in talent while taking a more deliberate approach to workforce growth.
Technology continues to be a key part of that strategy. Nearly two-thirds (62%) of Canadian SMEs report increasing their investment in AI, signalling that businesses are moving beyond experimentation and embedding AI into day-to-day operations to drive efficiency and support future growth.
The survey also highlights the biggest challenges facing Canadian SMEs heading into Q4. Productivity (41%) ranked as the leading business pressure, followed by wages (39%) and hiring and talent acquisition (36%), underscoring the balancing act many employers face as they continue to grow while managing costs and workforce demands.
The findings also suggest businesses remain focused on long-term growth. More than one-quarter (26%) of SMEs say expansion or growth is their primary financial focus over the next six months, while 41% are focused on maintaining a balanced approach between growth and operational stability.
As Canadian SMEs prepare for the busy fall season, Employment Hero says the findings point to a business community that remains optimistic about future opportunities while taking a disciplined approach to hiring, investment and workforce planning.
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This entry was posted on August 11, 2026 at 10:13 am and is filed under Commentary with tags Employment Hero. You can follow any responses to this entry through the RSS 2.0 feed.
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Canadian SMEs Head Into Fall Optimistic But More Disciplined About Hiring and AI Investment, New Employment Hero Survey Finds
As Canadian businesses head into the second half of the year amid ongoing economic uncertainty, new research from Employment Hero, the global AI-powered employment platform, suggests SMEs are entering Q4 with cautious optimism – continuing to invest in talent and AI while taking a more disciplined approach to growth, hiring and productivity.
The inaugural Employment Hero SME Pulse, a quarterly survey of 600 Canadian senior business leaders, found 58% of SMEs are optimistic about their business outlook over the next six months, compared to just 18% who are pessimistic. At the same time, businesses are taking a measured approach to growth, balancing hiring and investment decisions against continued economic uncertainty.
Hiring remains a priority, but employers are becoming increasingly selective. More than one-third (34%) of SMEs expect to expand hiring over the next six months, while another 32% say they plan to hire selectively, suggesting businesses continue to invest in talent while taking a more deliberate approach to workforce growth.
Technology continues to be a key part of that strategy. Nearly two-thirds (62%) of Canadian SMEs report increasing their investment in AI, signalling that businesses are moving beyond experimentation and embedding AI into day-to-day operations to drive efficiency and support future growth.
The survey also highlights the biggest challenges facing Canadian SMEs heading into Q4. Productivity (41%) ranked as the leading business pressure, followed by wages (39%) and hiring and talent acquisition (36%), underscoring the balancing act many employers face as they continue to grow while managing costs and workforce demands.
The findings also suggest businesses remain focused on long-term growth. More than one-quarter (26%) of SMEs say expansion or growth is their primary financial focus over the next six months, while 41% are focused on maintaining a balanced approach between growth and operational stability.
As Canadian SMEs prepare for the busy fall season, Employment Hero says the findings point to a business community that remains optimistic about future opportunities while taking a disciplined approach to hiring, investment and workforce planning.
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This entry was posted on August 11, 2026 at 10:13 am and is filed under Commentary with tags Employment Hero. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.