How political uncertainty is shaping hiring decisions

The political landscape has always been part of doing business. But lately, Canadian employers have had a few more variables to consider

BLAME THE POLITICAL climate for the lack of new jobs out there, sates a new poll from Express Employment Professionals and Harris Poll.

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According to the survey, some 60 per cent of hiring managers say the political climate affects their company, with two thirds of those saying it does so negatively, and around 14 per cent of companies that aren’t adding staff say they’re waiting to see what government policy does.

“Political instability creates an uncertain hiring environment and an unpredictable economy,” said Express CEO Bob Funk Jr. “While businesses can’t control these external pressures, thoughtful planning gives leaders the flexibility to make difficult decisions today while protecting the people and investments that drive future growth.”

What ‘political uncertainty’ means here is anybody’s guess, though. The survey was taken in late May of this year, about 90 days into the Iran war, so perhaps that climate was weighing heavily on Canadian businesses. Whatever the cause, the climate it describes is pretty much in line with what other business sentiment surveys are showing: there’s some sense of stability out there, but lots of confusing external factors are acting as a giant brake on growth.

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“Most firms anticipate keeping staffing levels unchanged, often commenting that current levels are sufficient to meet expected demand. Several firms also expect automation and other efficiency improvements to raise productivity, allowing them to meet increases in sales without adding workers,” reads a more recent Bank of Canada survey. Businesses are dealing with both labour shortages and spare capacity, and tariffs are making it all a lot harder to navigate.

But not all are complaining. About 20 per cent of the businesses surveyed by Express said the political climate has affected their business positively. There are, it suggests, a decent number of businesses out there with a bit of a tailwind. And the BoC found much the same: the firms that do plan to add staff “generally reported improved demand, often linked to public spending or natural resources.” Kieran Delamont