As 2024 comes to a close, the Canadian labor market is beginning to show early signs of stability despite the economic uncertainties. We are cautiously optimistic as we head into 2025 that organizations will continue to add talent and start prioritizing business initiatives that may have gotten deferred or delayed over the last year. Economic metrics point to a measure of recovery. In December, Canada’s Central Bank cut interest rates again, reducing them from 3.75% to 3.25%. Employment grew by nearly 51,000 jobs in November. The country’s GDP rebounded in September after remaining flat in August. The talent market improved, too. The Canadian Staffing Index surged in October, recording the highest levels of hours worked in 2024, marking a 12.5% increase from September. Meanwhile, the labor force participation rate—the proportion of the population ages 15 and older who are working or looking for work—grew by 0.3% in November.

As these indicators improve, workforce trends are evolving. Hybrid work and well-being initiatives are at the forefront of employee engagement strategies. A recent survey highlighted the importance of flexible work arrangements, company culture, and professional development opportunities in attracting and retaining talent across generations. Employers focusing on shared values and individualized connections are well-positioned to effectively navigate these changes.

In 2025, we expect many companies will focus on getting the most out of their existing workforce through services like business process outsourcing and managed services. These solutions allow organizations to delegate functions and even entire departments to a trusted partner and streamline operations, reduce costs, and improve efficiency. By using specialized talent, advanced technology, and industry best practices, companies can increase scalability, drive innovation, boost productivity, and create growth through non-core parts of their businesses.

Our experience this year has reinforced the importance of focusing on local relationships and supporting those with both consultative and global talent solutions. The new year looks bright for the labor market, and we look forward to what 2025 has in store for the national and global economy.