With Small Business Month approaching in October, new first-party payroll data from, Employment Hero, the all-in-one employment platform for Canadian businesses, offers a timely look at how SMEs are faring heading into the final quarter of 2026.
The latest data points to a growing workforce balancing act: SMEs are pulling back on headcount, while continuing to pay more for talent.
Key findings include:
- SME headcount declined 1.7% year-over-year in August, marking the second consecutive month of negative annual growth.
- At the same time, wages rose 5.5% year-over-year, the highest annual increase recorded in the report’s 13-month reporting window, up from 4.1% in July.
- The picture varies across the country: headcount declined 2.6% in Ontario and 3.1% in B.C., while remaining positive in Alberta (+0.5%), Quebec (+1.4%) and Nova Scotia (+2.4%).
- Consumer-facing businesses are bucking the national trend, with headcount across retail, hospitality and tourism up 1.7% year-over-year.
The data suggests Canadian SMEs are becoming more cautious about adding people while continuing to invest in the talent they need, putting retention, productivity and smarter workforce planning firmly on the agenda as businesses head into Small Business Month and Q4.
Full findings are available here: Canadian SMEs Enter Small Business Month with Softer Employment and Rising Wages, New Employment Hero Data Shows.
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This entry was posted on September 15, 2026 at 9:00 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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New data shows Canadian SMEs pull back on hiring as wages climb
With Small Business Month approaching in October, new first-party payroll data from, Employment Hero, the all-in-one employment platform for Canadian businesses, offers a timely look at how SMEs are faring heading into the final quarter of 2026.
The latest data points to a growing workforce balancing act: SMEs are pulling back on headcount, while continuing to pay more for talent.
Key findings include:
The data suggests Canadian SMEs are becoming more cautious about adding people while continuing to invest in the talent they need, putting retention, productivity and smarter workforce planning firmly on the agenda as businesses head into Small Business Month and Q4.
Full findings are available here: Canadian SMEs Enter Small Business Month with Softer Employment and Rising Wages, New Employment Hero Data Shows.
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This entry was posted on September 15, 2026 at 9:00 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.