Executive Search in Canada: Navigating Uncertainty in 2025
March 20, 2025 – The Canadian executive search market has adapted to the evolving demands of a rapidly shifting business environment. As executive recruitment continues to transform, heightened competition across the Canadian business sector necessitates a more strategic approach to talent acquisition. “The executive search landscape in Canada enters 2025 amid significant political and economic uncertainty,” said Jay Rosenzweig, CEO of Toronto-based executive search firm Rosenzweig & Company.
Mr. Rosenzweig points to Mark Carney, who has assumed the role of Prime Minister following Justin Trudeau’s departure, with an election anticipated imminently, potentially leading to another leadership transition. “Trade relations with the United States have become increasingly strained,” Mr. Rosenzweig explained. “On March 4, 2025, President Donald Trump imposed a 25 percent tariff on most Canadian imports, excluding energy products, which are subject to a 10 percent tariff. The status of these tariffs continues to evolve, causing uncertainty for Canadian industries and the broader economy. In response, Canada implemented retaliatory tariffs on $29.8 billion worth of U.S. goods, effective March 13, 2025. This escalating trade dispute adds further uncertainty to the economic environment.”
“Domestically, Canada has tightened its immigration policies in response to a housing crisis and pressures on social services,” Mr. Rosenzweig said. “While immigration remains a key component of Canada’s labor strategy, these shifting immigration policies may affect workforce availability in certain industries.”
The broader economic picture remains mixed, according to Mr. Rosenzweig. “While inflation has cooled and the Bank of Canada has begun lowering interest rates, economic growth continues to lag,” he said. “Per capita GDP growth has declined for six straight quarters, the unemployment rate has climbed to 6.8 percent, and the Canadian dollar remains weak, hovering below 70 cents USD. Normally, lower interest rates would encourage investment, but political uncertainty may delay major hiring and expansion decisions.”
The State of Executive Search in Canada
Executive search in Canada mirrors global trends, with large multinational firms competing alongside specialized boutiques,” Mr. Rosenzweig explained. “At our firm, we offer a unique advantage—combining the reach and expertise of top global firms with the senior-level, hands-on service of a boutique,” he said. “This approach allows us to deliver highly customized and conflict-free solutions tailored to each client’s needs.
Mr. Rosenzweig also notes that financial services remain a strong area of demand, particularly as Canada’s major banks and insurance firms continue to invest in AI-driven automation. “This transformation is creating demand for senior technology leadership roles,” he said.
Related: Uncertainties and Tensions Aside, Canadian Search Market Remains Robust
“In contrast, public sector hiring is expected to slow,” Mr. Rosenzweig said. “Over the past decade, the Canadian public service has grown by 27 percent, but with fiscal tightening on the horizon, reductions are likely. That said, AI and automation roles may still see investment if they are positioned as cost-saving measures.”
Global Hiring Intentions Remain Steady for Q2 2025 Amid Ongoing Uncertainty
Global hiring intentions hold steady heading into the second quarter of 2025, with employers reporting a Net Employment Outlook (NEO) of 25 percent, according to the latest ManpowerGroup Employment Outlook Survey. The results, which gathered data from nearly 40,000 employers across 41 countries during January 2025, show the outlook holding steady for the third consecutive quarter while demonstrating a modest three percentage point increase year-over-year. The majority of employers – 42 percent – expect to maintain current staffing levels, 40 percent anticipate an increase in hiring, 18 percent anticipate a decrease or are unsure. For employers anticipating a staffing decrease in the second quarter, economic uncertainty is cited as the main challenge, followed by adapting to market changes.
“We are pleased to see hiring outlooks holding steady for three consecutive quarters now – the longest period of stability we have seen since before the pandemic,” said Jonas Prising, chair and CEO of ManpowerGroup. “Despite continued economic and political uncertainty, employers are holding onto the skilled workers they have and hiring cautiously for new talent, particularly those with in-demand skills that will enable their business to transform. As AI accelerates, we expect to see a greater focus on skills development as organizations seek to guide their workforce through a period of transition.”
Other key sectors include natural resources (mining, oil, and gas), transportation (rail and air), and technology, according to Mr. Rosenzweig. “While Canada’s tech industry has seen growth, the evolving policy landscape may impact talent recruitment and retention,” he said. “Ultimately, Canada’s executive search industry faces a complex environment. Political uncertainty, economic headwinds, and shifting workforce dynamics will continue to shape demand. However, one constant remains: in times of uncertainty, strong leadership is critical. Organizations that invest in top talent now will be best positioned to navigate the challenges and opportunities ahead.”
Serving Canada
Rosenzweig & Company is an executive search firm focused on the critical, often specialized recruiting needs of its clients. The firm also offers management assessment, onboarding and executive coaching, organizational effectiveness, digital media strategy, and risk advisory and compliance services to a growing international client base.
Mr. Rosenzweig, the founding partner of the firm, is an expert in designing, building and attracting world-class executive teams. He consults to public and private companies, including large global corporations, emerging growth to mid-sized businesses, professional services firms, and private equity and venture capital firms.
Related: How Canadian Executive Search Firms Are Shaping Talent Acquisition
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
