Retail, hospitality and tourism wages climbed 10.6% as small businesses staff up for patio season.
Canadian small businesses are continuing to raise pay faster than inflation and are stepping up hiring ahead of the busy summer season, according to new data from Employment Hero.
The company said wages among small and medium-sized businesses rose 4.4% year over year in April, extending a trend of pay gains that remain above the inflation rate. At the same time, employers in consumer-facing sectors are adding staff as warmer weather and seasonal events increase demand.
Retail, hospitality and tourism employment increased 3.8% from a year earlier, while wages in those industries jumped 10.6% — the strongest pay growth of any sector tracked in the report.
With patios reopening and festival season approaching, businesses tied to discretionary spending are moving ahead with recruitment even as broader economic uncertainty persists.
"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 report suggests employers are increasingly turning to more flexible staffing arrangements to manage uncertainty and control labour costs. Casual employment rose 12.7% year over year, indicating greater reliance on adaptable workforce models.
Employment Hero said the shift reflects the balancing act many SMBs face as they contend with higher wages, rising operating expenses and uneven economic conditions.
"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."
