Statistics Canada’s latest Labour Force Survey suggests Canada’s labour market remains in a holding pattern, with national employment largely unchanged in April amid ongoing economic uncertainty. But among small and medium-sized businesses (SMBs), the picture is more nuanced.
New data from Employment Hero’s Canadian first-party data engine shows SMB wages rose 4.2% year-over-year in April, continuing to outpace inflation (2.4%), even as overall SMB employment declined 0.9% nationally.
Built from labour market activity across nearly 3,000 Canadian SMBs, the monthly dataset is designed to complement broader labour reporting with a more immediate view into how smaller businesses are responding to shifting economic conditions.
Summer-facing industries are still hiring
While hiring remains soft overall, businesses tied to seasonal consumer demand are showing stronger momentum heading into summer.
Employment across retail, hospitality and tourism rose 3.8% year-over-year in April, while wages in the sector climbed 10.6% — the strongest wage growth recorded across all industries tracked.
With patios reopening, festivals approaching and summer travel season beginning, many consumer-facing businesses appear to be staffing up despite broader economic caution.
“Canadian small businesses aren’t shutting down hiring, they’re getting far more selective about where they place their bets,” said KJ Lee, CEO of Employment Hero Canada.
“Businesses tied to consumer demand don’t have the luxury of waiting things out. If patios are filling up, festivals are around the corner and customers are spending, employers need people on the ground now.”
The data also suggests employers are increasingly leaning on flexible staffing models, with casual employment rising 12.7% year-over-year.
“SMBs are under pressure from every direction: wage expectations, operating costs and an economy that still feels unpredictable,” Lee said.
“That doesn’t mean hiring stops. It means businesses become sharper and far more pragmatic about how they build teams.”
Regional economies are moving at different speeds
While national labour market headlines often focus on aggregate trends, regional SMB performance tells a more fragmented story.
Employment Hero’s April data shows several regions continuing to outperform despite broader softness:
- Saskatchewan: Employment up 5.7%, wages up 5.7%
- Alberta: Employment up 2.0%, wages up 5.4%
- Nova Scotia: Employment up 4.7%
- New Brunswick: Employment up 2.5%
- Quebec: Employment up 3.8%
- Ontario: Employment down 1.8%, though wages rose 3.3%
- British Columbia: Employment down 4.4%, while Vancouver wages climbed 5.5%
“National headlines rarely tell the whole story,” Lee added.
“What this data shows is that Canada’s SMB economy isn’t moving in one direction. Some regions and sectors are still growing aggressively, while others are becoming more cautious and many businesses are trying to balance both realities at once.”
Why SMB labour signals matter
Small businesses are often among the first to respond to changes in customer demand, cost pressure and economic confidence, making them a useful leading indicator for broader labour market shifts.
While the national outlook remains cautious, April’s data suggests some employers are still actively investing in growth, particularly where seasonal demand creates immediate hiring pressure.
