Survey shows 46% of blue-collar employers doubt survival if downturn hits this year
Nearly one third of Canadian companies believe they may not survive a recession this year, a figure rising to 46 percent among blue-collar employers, according to the latest Express Employment Professionals–Harris Poll survey.
Three-quarters (76 percent) of businesses are preparing for a downturn, with 51 percent expecting it within the next 12 months and 14 percent already believing Canada is in one.
The survey found that 93 percent expect a recession to affect their organisation, with 55 percent anticipating a significant impact.
Concerns over a slowdown are already shaping hiring strategies.
Almost one quarter (22 percent) of companies are not hiring or expanding headcount this year due to recession fears.
If a downturn materialises, 30 percent said they would reduce hiring, while 23 percent would freeze hiring altogether.
Eighty-one percent of employers have taken proactive measures to prepare.
These include cutting unnecessary expenses (42 percent), adjusting pricing or payment plans (26 percent), reducing inventory (25 percent), cross-training employees for multiple roles (23 percent), streamlining processes (22 percent), not filling vacated roles (21 percent), and delaying raises or bonuses (20 percent).
The report also highlighted the strategic trade-offs in recession planning, with 62 percent of companies saying preparation efforts have taken time away from improving their long-term outlook.
Despite this, there is still a measure of optimism.
Seventy-one percent of employers believe they will be in a better economic position at the end of the year compared to the start, and 54 percent view a potential recession more as a growth opportunity than a threat.
When asked what would help them navigate a downturn, hiring managers cited training and upskilling programs (47 percent), mental health resources for employees (33 percent), flexible staffing solutions (33 percent), and clearer communication from leadership (28 percent).
Bob Funk Jr., CEO, president and chair of Express Employment International, said resilient companies use economic shifts as opportunities to boost efficiency. “By streamlining operations and investing in versatile talent, businesses can position themselves for long-term success in any environment.”
