Canada has experienced seismic shifts in its talent landscape over the past few years. The COVID-19 pandemic, increased technology adoption, and a competitive job market have altered how companies attract, retain, and engage employees. As we are moving into 2025, human resources (HR) professionals and business leaders must stay informed on emerging talent trends to build workforces ready for the future.
This article will explore the top talent trends shaping the Canadian job market. Weโll examine how skills needs are changing, recruitment and retention challenges employers face, the evolution of diversity, equity and inclusion (DEI) initiatives, and shifts in flexible work models across the country. Understanding these talent trends is crucial for organizations looking to adapt to todayโs rapidly transforming world of work.
How are skills needs evolving in Canada?
The skills that employees need to possess are undergoing rapid change in Canada, driven by several key factors reshaping work. Automation, digital transformation, the Fourth Industrial Revolution, demographic shifts, globalization, and more are significantly altering the capabilities sought by employers.
HR leaders must deeply understand how skills demands are shifting to ensure their workforces have the right capabilities needed now and into the future. Failing to recognize changing skills requirements and adapt accordingly can leave organizations with talent gaps that hinder performance and progress.
Some of the major forces causing skills disruption in Canada include:
- Automation – Advanced robotics, AI, and intelligent technologies are automating specific routine and repetitive tasks, reducing the need for some manual skills while increasing the need for analytical skills to work alongside machines. By 2030, PwC estimates 30% of global jobs could be automated. HR leaders must prepare workforces for man-machine collaboration.
Source: https://www.nexford.edu/insights/how-will-ai-affect-jobs
- Digital TransformationโAs data and digital solutions transform business models, digital fluency and specialized technology skills like analytics, cybersecurity, and cloud computing are imperative. Canada’s Digital Adoption Index reveals a widening digital fluency gap, signalling the need to upskill workers.
- The Fourth Industrial Revolution – The rapid pace of technological advances pushes companies to integrate emerging technologies like 3D printing, blockchain, biotech, quantum computing, and more. This revolution demands learnability and adaptability.
- Demographic ShiftsโCanada’s aging workforce is increasing retirement rates, causing knowledge loss as boomers exit and contributing to labour shortages. Meanwhile, new grads offer relevant emerging skills but lack experience. Strategically transferring knowledge alongside the development of new talent is critical.
- Globalization – Cross-border business integration means Canadian employers compete in a global talent pool. Skills like cultural competence and language abilities differentiate workforce capabilities.
HR professionals must track how these transformative forces evolve to make strategic decisions on closing skills gaps. Partnering with government and education institutions enables building the talent pipelines Canada needs now and into the future.
What skills are in high demand right now?
The Conference Board of Canadaโs 2024 skills survey, which polled over 1,000 employers nationwide, revealed that the top skills currently sought by Canadian employers include both technical and soft skills.
Digital capabilities top the list of in-demand skills. As businesses across sectors rapidly adopt new technologies, the need for talent skilled in areas like data analytics, automation, AI, cybersecurity, and cloud computing continues rising steeply. Over half of employers surveyed struggled to find applicants adequately skilled in vital digital areas last year.
STEM skills in science, technology, engineering, and math also remain urgently in demand. According to estimates, STEM labour shortages cost Canadian companies over $13 billion in annual revenue, signalling the need to grow STEM talent pipelines.
Source: https://globalnews.ca/news/9224124/canada-labour-shortage-economy-loss/
Soft skills like communication, collaboration, creativity, and critical thinking are equally vital. A 2022 World Economic Forum jobs outlook ranked analytical thinking, innovation, active learning, and resilience among the top skills employers need. Emotional intelligence, cultural awareness, and leadership abilities are imperative for management roles.
The Conference Board survey reveals that leadership skills are especially sought after in Canada right now, given the high rates of retirement by senior managers in the coming years. Companies will need to cultivate new leaders ready to guide organizations through complex changes.
Among technical skills, the specific aptitudes sought differ across industries but share everyday needs for data-driven roles. Examples of crucial emerging technical skills needs include:
- Cybersecurity is highly sought-after across finance, technology, healthcare, and other data-rich sectors.
- Cloud computing – Important for roles managing remote infrastructure and distributed workflows.
- Data analytics – Valuable for extracting insights from data across functions.
- AI – Key for building teams to deploy automated solutions and understand impacts.
- Robotics – Critical for advanced manufacturers implementing intelligent automation.
Understanding the technical and soft skills employers are urgently demanding allows HR teams to make strategic upskilling and hiring decisions to build future workforces.
How are skills demands changing across different industries?
While technical skills are increasingly crucial across all sectors, the specific skills required differ significantly between industries. Understanding these nuances is critical for targeted upskilling.
As factories modernize, demand is rising sharply for skills in robotics, automation, computer-assisted manufacturing, and more. A recent Canadian Manufacturers and Exporters survey found that 60% of manufacturers are adopting advanced technologies, creating an urgent need to reskill existing workforces.
Professional services firms urgently require talent skilled in data science and analytics as they leverage AI and machine learning to extract insights and optimize deliverables. Management consulting, marketing, HR and other professional services are increasingly data-driven.
Healthcare continues suffering severe staffing shortages, which were projected to leave Canada short 60,000 nurses in 2022. Beyond clinical skills, healthcare employers need workers with emotional intelligence and resilience to manage stress. Virtual care skills are also increasingly sought as care delivery models shift.
Startups and emerging companies value agile learners who can rapidly acquire new skills as strategies pivot. Entrepreneurial thinking and change management abilities are vital in dynamic environments. Startups also demand digital marketing and data skills to understand customers and measure performance.
Across all sectors, adaptability and digital fluency are crucial enabling skills for the future. Many businesses said their digitally skilled employees need frequent retraining to keep pace with technology changes. This underscores the value of resilient, motivated, and creative learners who see learning as a lifelong endeavour.
While the mix of technical and soft skills may evolve rapidly, timeless abilities like communication, empathy, creativity, and problem-solving remain relevant. HR leaders must take a nuanced approach to workforce planning, examining both industry-specific technical skills and universal human skills needed for the future.
What impact does technology have on skills requirements?
The rapid acceleration of technologies like artificial intelligence, machine learning, automation, and robotics is having a transformative impact on the skills Canadian employers need. Understanding and planning for technology’s influence is crucial for building future-ready workforces.
A recent report from RBC predicts that over the next 10 years, technological advancements could disrupt as many as 1 in 4 Canadian jobs. While the report notes that new technologies have not historically reduced net employment levels, they do drive major workforce transitions.
Specifically, advances in automation and AI are decreasing employer demand for routine manual and cognitive skills that machines can replicate. However, technology increases the need for critical thinking, complex problem-solving, creativity, advanced IT skills, and socio-emotional abilities like persuasion, leadership, and collaboration.
In essence, technology automates repetitive tasks but increases the need for the skills that make human workers irreplaceable. A 2022 OECD report found that workers in highly automatable jobs spend more time on activities like expert thinking and communication.
Understanding how technology will specifically impact skills in different roles enables strategic upskilling and workforce planning. However, perspectives on automationโs impact differ. Mercer’s Global Talent Trends study revealed that only 28% of HR leaders believe AI and automation will enable substantial business growth.
This signals the critical need for transparent communication on how technology will benefit both workers and the organization. Demonstrating how AI makes jobs more enjoyable by removing dull tasks can build buy-in. Committing to retraining helps ease fears of job loss. While disruption is expected, technology stands to unlock human potential rather than replace it. Adopting this narrative shifts mindsets from tech threat to tech empowerment.
What recruitment and retention challenges are Canadian employers facing?
Hiring and keeping top talent remains difficult for many Canadian employers. Tight labour markets, increased employee mobility, competitive compensation expectations, and evolving worker priorities present recruitment and retention obstacles that demand creative solutions.
How is the labour shortage impacting hiring?
In September 2024, Canada’s unemployment rate decreased slightly to 6.5% after rising in August. This 0.1 percentage point drop marked the first time the unemployment rate declined since January. This talent shortage hands power to job seekers, forcing employers to rethink traditional hiring tactics. Strategies like skills-based recruitment, remote hiring, talent pipelines, and internal mobility programs are vital for accessing talent outside regular talent pools.
Source: https://www150.statcan.gc.ca/n1/daily-quotidien/241011/dq241011a-eng.htm
What are the expectations of todayโs Canadian workforce?
Todayโs employees, especially younger generations, have far different expectations than past cohorts. Purpose and fulfillment are now priorities. Flexibility is also coveted, evident in the war for talent between remote-first employers and those mandating onsite work.
Why is retention a top priority for HR leaders?
In this employee-driven job market, turnover carries massive costs. Replacing a skilled employee can average 6 to 9 monthsโ salary. The 2022 LinkedIn Global Talent Trends report reveals that companies are focused on improving engagement through employee retention strategies. Top strategies include upskilling, DEI programs, and health and wellness benefits.
Flexibility and career growth are especially crucial for retention. Mercerโs 2022 Global Talent Trends study found the top reasons Canadian employees stay are exciting work, work/life balance, and career advancement opportunities. Understanding what matters to today’s workforce enables employers to curate engaging experiences.
How are DEI initiatives evolving in Canada?
Diversity, equity, and inclusion (DEI) remain center stage. However, meaningful progress requires evolving from basic representation metrics toward lasting cultural change. Many employers are moving from DEI as an initiative to an integrated business imperative.
Learn more: Disability Inclusion in the Canadian Workplace: Embracing Diversity and Fostering Success
What steps are companies taking to advance DEI?
Leading employers are progressing DEI through diverse interview panels, pay equity reviews, inclusive leadership training, employee resource groups, and more. In Mercerโs 2022 Global Talent Trends survey, nearly half organizations said they were increasing investment in DEI. Top approaches include improving hiring and promotion practices and mandatory DEI training.
How does DEI impact talent attraction and retention?
DEI directly influences top talent acquisition and retention. A recent LinkedIn survey found that the majority of Canadian job seekers say workplace diversity is essential when evaluating job offers. Glassdoor research reveals that turnover is higher at companies lacking diversity. Employees want to see their identities reflected at all levels of an organization.
What DEI trends should employers prepare for?
Look for continued focus on embedding DEI through improved data collection, policies promoting equity, and widespread training. Psychological safety will be emphasized, allowing employees to show up authentically without fear. Belonging will gain prominence as the next evolution of inclusion efforts. And expect increased prioritization of accessibility and neurodiversity.
How are flexible work models changing in Canada?
Work models are diversifying, with flexible and remote work policies now mainstream. Statistics Canada reports that nearly nearly half of Canadian employees work fully or partially remotely. Employers must redefine policies and practices to operate effectively amidst this flexibility transformation.
What hybrid and remote work options are employees looking for?
A 2022 Durham College survey reveals most Canadians want a hybrid model blending remote and onsite work. Employees cite better work-life balance and higher productivity as top motivators for flexible options. The level of flexibility sought differs by demographics like generation, personality, and life stage. Offering a spectrum of work arrangements enables employers to meet diverse needs.
How can companies support employee well-being in flexible work models?
Flexibility introduces new wellbeing considerations related to blurred work-life boundaries, social isolation, stress, etc. Employers play a crucial role in nurturing physical and mental health through tactics like virtual social events, wellness benefits, remote ergonomic support, and flexible PTO. Managers should check in frequently and watch for signs of burnout.
What policies are needed to enable successful flexible work?
Trust, autonomy, and accountability are the foundations of practical, flexible work arrangements. Employers require clear policies addressing expectations, deliverables, technology access, and schedules across all work models. Training helps managers lead dispersed teams. Ongoing pulse surveys and open communication ensure alignment as policies evolve. While complex, flexibility done properly powers recruitment, engagement, inclusion and, ultimately, performance.
Learn more about Talent Trends & HR insights in Canada at Ebsource
Key Takeaways
The talent landscape in Canada is undeniably turbulent. Employers embracing upskilling, flexibility, data-backed hiring, creative retention tactics, and inclusive workplace cultures will thrive amidst the changes. Assessing your organization against today’s top Canadian talent trends provides valuable perspectives on strengths and gaps requiring action.
From recalibrated skills strategies to reimagined work models, proactive planning positions your workforce for success today and tomorrow. As a leader, understanding these talent trends in Canada means your organization can feel confident, rather than apprehensive, about the exciting future of work that lies ahead.
Hereโs the key takeaway for talent trends in Canada that HR should look forward to in 2025:
- Technical and soft skills like digital fluency, adaptability, creativity, and communication are in high demand across all industries as automation, technology, and demographic shifts disrupt work.
- Canada’s tight labour market and competitive compensation expectations make hiring and retention challenging. Employers must get creative with recruitment approaches and focus on engaging employee experiences.
- Diversity, equity and inclusion are evolving from a standalone initiative to an integrated business imperative. Psychological safety and belonging will gain prominence.
- Employees overwhelmingly desire flexible hybrid work options. Supporting wellbeing and implementing inclusive, flexible work policies are essential.
- As technology advances, transparent communication about upskilling programs and automation’s benefits for workers is crucial for building buy-in and trust.
FAQs for Top Talent Trends in Canada
Q: What are the top skills in demand by Canadian employers right now?
A: Digital skills, STEM skills, soft skills like communication and collaboration, and leadership abilities are most in demand currently according to research from the Conference Board of Canada. Cloud computing, cybersecurity, data analytics, and AI are key technical skills needed.
Q: How is the labor shortage impacting recruitment in Canada?
A: With over 1 million current job vacancies in Canada, the talent shortage forces employers to embrace new recruiting tactics like skills-based hiring, remote recruitment, talent pipeline development, and internal mobility programs.
Q: Why is retention a top concern for Canadian companies?
A: In today's employee-driven job market, turnover is extremely costly for employers. Engagement, flexibility, health/wellness benefits, upskilling opportunities, and DEI programs are key focus areas for retention.
Q: What is driving the focus on DEI across Canadian workplaces?
A: Employees and job seekers increasingly expect meaningful diversity, equity and inclusion commitments from employers. Integrated DEI practices are shown to improve talent acquisition, engagement, innovation, and performance.
Q: What flexible and hybrid work options do Canadian employees want?
A: Surveys show most employees want hybrid remote/onsite schedules that offer work-life balance and productivity benefits. Expectations around flexibility differ demographically, so offering options is ideal.
Article Sources
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Talent Trends 2024 – michaelpage.ca
Canadian insights: Top four global talent trends in 2024 – imercer.com
leading trends in human resources jobs for 2024 – randstad.ca
Canadian insights: Top four global talent trends – hrpa.ca
