Top 4 Wildest Hiring Trends in 2025 (And 6 Predictions for 2026)

At the beginning of the year, we do what most recruitment agencies in Toronto do. We assess the current hiring landscape and predict what we think will happen. Many of the trends we discussed in Hiring Trends You Can Expect to See in 2025 came to fruition. Others also emerged. New trends will shape recruitment in 2026.

In this blog, we are going to take a look at the year that was and predict the year to come. We’ll cover:

The Top 4 wildest hiring trends we saw in 2025
6 hiring trends for 2026

The Top 4 wildest hiring trends we saw this year

A lot happened in 2025. There was a lot of uncertainty with the economy. Artificial intelligence took a stronghold on how we work, and companies shifted how they recruit talent.

1. AI and Automation Are Changing Hiring

AI and automation tools are streamlining recruiting. Tools are being used for resume screening, candidate matching, and interview scheduling to predictive analytics and bias reduction.

These technologies allow recruiters to shift focus away from administrative tasks toward more strategic, relationship‑based hiring.

While AI is transforming hiring on a technical level, human judgment remains critical, especially for cultural fit and nuanced evaluation.

Read more: How AI and Automation Are Changing Hiring

2. Video and AI Are The New Norm

Video interviews and AI are transforming traditional hiring. While in‑person interviews remain valued, virtual and AI‑assisted formats are increasingly common and efficient.

Companies are turning to video because it offers faster scheduling, it’s ideal for geographically dispersed candidates, there are reduced logistical challenges, and cost-effectiveness.

However, despite technological advantages, human evaluation remains essential. Ethical considerations around AI use must be addressed.

3. The Boomerang Trend

A growing number of companies are rehiring former employees rather than recruiting new ones.

In some sectors (especially information, education, manufacturing, and finance), a large proportion of new hires are returning employees.

The boomerang trend is popular because rehiring saves time, reduces risk, addresses skill shortages faster, and helps former employees bring back knowledge and continuity.

4. Labour Hoarding

Companies are holding on to more staff than they immediately need, as a buffer against unpredictable economic conditions or future demand spikes.

This strategy reflects caution among employers, but also underscores the unpredictable nature of hiring and workforce planning in 2025.

Our recruiters’ predictions for 2026 hiring trends in Canada

Now that we’ve reviewed what happened this past year, let’s predict what hiring trends will emerge in 2026. Here are 6 predictions from our recruitment team:

1. AI-Powered Recruitment will become more prominent

AI-powered recruitment will continue to gain momentum across Canada in 2026. Employers will look to streamline hiring in a tight and competitive labour market.

Canadian organizations are increasingly using AI for resume screening, candidate matching, interview scheduling, and predictive hiring analytics.

However, with new federal and provincial regulations around artificial intelligence, data privacy, and employment equity, responsible AI use will be critical. Employers must ensure their hiring technology is transparent, compliant, and free from bias.

2. Skill-based hiring will be a priority

Skill-based hiring will dominate recruitment strategies in 2026 as employers focus more on competencies than formal credentials.

With ongoing labour shortages across healthcare, technology, skilled trades, and finance, Canadian employers are expanding access to talent by prioritizing hands-on experience and validated skills over traditional degrees.

Expect to see more work-sample testing, certifications, and practical assessments built into hiring processes.

3. Great emphasis on upskilling

Upskilling will become a top priority for Canadian employers. Automation, AI, and digital transformation will continue to reshape nearly every industry.

Rather than relying solely on external hiring, organizations are investing in internal learning programs to future-proof their workforce. Government-supported training grants, employer-led learning platforms, and micro-credential programs through Canadian post-secondary institutions will play a major role.

Upskilling is also proving to be a powerful retention tool, helping employers keep top talent engaged while closing critical skills gaps.

4. Employers focus on internal mobility

Internal mobility will be a key workforce strategy as competition for experienced talent intensifies. Organizations are increasingly building formal career pathways, cross-training programs, and internal job marketplaces to promote from within.

This approach reduces recruitment costs, improves employee engagement, and shortens time-to-productivity. For employees, internal mobility provides career growth without the risk of leaving an employer, making it especially attractive in uncertain economic conditions.

5. The gig economy continues to expand

The gig economy will continue its steady expansion across Canada, especially in technology, creative services, healthcare, logistics, and professional consulting. Canadian companies are leveraging contract and freelance workers to remain agile, control costs, and access specialized expertise on demand. However, with increased scrutiny around worker classification, payroll compliance, and employment standards across provinces, organizations must be cautious when engaging gig workers. Proper classification and legal compliance will be essential to avoiding penalties and reputational risk.

6. Flexible workforce models become a strategic recruiting advantage

Flexible workforce models, such as remote work, hybrid schedules, flexible hours, and compressed workweeks, will remain a powerful competitive advantage for Canadian employers.

Workers continue to prioritize work-life balance, mental health, and flexibility when choosing employers. Organizations that offer adaptable work arrangements are experiencing stronger attraction, improved retention, and higher productivity.

A Final Word on Preparing for Canada’s 2026 Hiring Landscape

Canada’s hiring landscape is being reshaped by technology, changing workforce expectations, and ongoing labour market pressures.

Employers who embrace AI responsibly, prioritize skills over credentials, invest in upskilling, promote internal mobility, adapt to the growing gig economy, and offer flexible workforce models will be best positioned to attract and retain top talent.