Canadian SMEs Head Into Fall Optimistic But More Disciplined About Hiring and AI Investment, New Employment Hero Survey Finds

Employment Hero’s inaugural SME Pulse finds 58% of Canadian SMEs are optimistic about the next six months, while 66% expect to hire

As Canadian businesses head into the second half of the year amid ongoing economic uncertainty, new research from Employment Hero, the global AI-powered employment platform, suggests SMEs are entering Q4 with cautious optimism – continuing to invest in talent and AI while taking a more disciplined approach to growth, hiring and productivity.

The inaugural Employment Hero SME Pulse, a quarterly survey of 600 Canadian senior business leaders, found 58% of SMEs are optimistic about their business outlook over the next six months, compared to just 18% who are pessimistic. At the same time, businesses are taking a measured approach to growth, balancing hiring and investment decisions against continued economic uncertainty.

Hiring remains a priority, but employers are becoming increasingly selective. More than one-third (34%) of SMEs expect to expand hiring over the next six months, while another 32% say they plan to hire selectively, suggesting businesses continue to invest in talent while taking a more deliberate approach to workforce growth.

“Canadian SMEs are entering the second half of the year from a position of cautious confidence,” said Chris Pinkerton, Managing Director of Employment Hero Canada. “Businesses haven’t stopped investing – they’re simply becoming much more intentional about where they invest. That means hiring strategically, improving productivity and looking for smarter ways to grow.”

Technology continues to be a key part of that strategy. Nearly two-thirds (62%) of Canadian SMEs report increasing their investment in AI, signalling that businesses are moving beyond experimentation and embedding AI into day-to-day operations to drive efficiency and support future growth.

The survey also highlights the biggest challenges facing Canadian SMEs heading into Q4. Productivity (41%) ranked as the leading business pressure, followed by wages (39%) and hiring and talent acquisition (36%), underscoring the balancing act many employers face as they continue to grow while managing costs and workforce demands.

“The conversation around AI has shifted,” added Pinkerton. “Businesses are no longer asking whether they should invest, they’re asking how they can use AI to help existing teams work smarter, improve productivity and remain competitive in an increasingly challenging operating environment.”

The findings also suggest businesses remain focused on long-term growth. More than one-quarter (26%) of SMEs say expansion or growth is their primary financial focus over the next six months, while 41% are focused on maintaining a balanced approach between growth and operational stability.

As Canadian SMEs prepare for the busy fall season, Employment Hero says the findings point to a business community that remains optimistic about future opportunities while taking a disciplined approach to hiring, investment and workforce planning.

About Employment Hero

Employment Hero is the global authority on employment, offering a world-leading Employment Operating System (eOS) that simplifies and optimizes every stage of the employment process. Its award-winning platform combines HR, payroll, recruitment, and employee engagement tools with the groundbreaking employment superapp, EH Work, which integrates career management and financial wellbeing. Serving over 350,000 businesses and managing more than 2.5 million employees worldwide, Employment Hero reduces administrative burdens by up to 80%, enabling organizations to focus on their goals and create more productive, engaged teams. By revolutionising the employment marketplace, Employment Hero is making employment easier, more valuable and rewarding for everyone.

About the Survey

The Employment Hero SME Pulse is a quarterly survey conducted among senior business leaders responsible for payroll, HR and/or hiring within Canadian businesses employing between 5 and 1,000 employees. The Q2 2026 survey was conducted by GWI among 600 Canadian business leaders between April and June 2026.

Source : Employment Hero