Small-business wages in Canada continued to rise faster than inflation in April, while hiring in hospitality, retail and tourism accelerated ahead of the summer season, according to new data released recently by Employment Hero.
The employment software company said wages among small and medium-sized businesses rose 4.2 per cent year-over-year in April, compared with inflation of 2.4 per cent, even as overall SMB employment declined 0.9 per cent nationally.
The figures come as Statistics Canada’s latest Labour Force Survey showed the broader labour market was largely unchanged in April amid ongoing economic uncertainty.
Employment Hero said its findings are based on data collected from nearly 3,000 Canadian SMBs through a newly launched first-party data platform intended to provide a real-time view of labour market activity among smaller businesses.
Consumer-facing sectors showed stronger hiring trends than the broader market, the company said.
Employment across retail, hospitality and tourism rose 3.8 per cent year-over-year, while wages in those industries climbed 10.6 per cent, the highest wage growth recorded among sectors tracked by the company.
The company linked the hiring activity to increased seasonal demand as patios reopen and festivals approach.
“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.”
Employment Hero also reported growth in more flexible staffing arrangements, with casual employment increasing 12.7 per cent year-over-year.
“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.”
The company’s regional data showed mixed employment conditions across the country.
Saskatchewan posted some of the strongest gains, with employment and wages both rising 5.7 per cent year-over-year. Alberta recorded employment growth of two per cent and wage growth of 5.4 per cent.
Nova Scotia saw employment rise 4.7 per cent, while employment increased 2.5 per cent in New Brunswick and 3.8 per cent in Quebec.
Ontario recorded a 1.8 per cent decline in employment, although wages still rose 3.3 per cent. In British Columbia, employment fell 4.4 per cent, while wages in Vancouver increased 5.5 per cent.
“National headlines rarely tell the whole story,” Lee added.
“What this data shows is that Canada’s SMB economy isn’t moving in one direction. Some regions and sectors are still growing aggressively, while others are becoming more cautious and many businesses are trying to balance both realities at once.”
Employment Hero said smaller businesses are often among the first to react to changes in consumer demand, operating costs and business confidence, making the company’s data an early indicator of broader labour market trends.
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