People Mentioned
Special Advisor, Ottawa
Canada’s struggling labour market is facing pressure on several fronts, says Special Advisor Stephen Poloz in a Financial Post article, reporting on Osler’s Q3 Economic Outlook webinar.
These pressures include hiring freezes brought on by trade uncertainty, the attrition of baby boomers entering retirement, and the rise of AI. Stephen noted the direct impact on jobs in industries that are trade sensitive, particularly automotive, steel and aluminum, but he also pointed to low business sentiment in the overall economy that has many businesses pausing hiring and rethinking their strategies.
“I think that’s an important thing we’re seeing in the numbers, the freezing plus the attrition,” says Stephen. “And I have to add another, which is technology.”
Adopting new technologies like AI is showing up in the country’s youth labour market. “Part of the evidence is in the youth,” says Stephen. “It (youth unemployment) has risen far more than the average unemployment rate.”
One of Canada’s largest generations — the baby boomers — are getting ready to retire, another factor Stephen says will impact the labour market, as companies continue to freeze hiring.
“If you can combine that with the fact that they are also seeing a big roll off of workers through retirements, through attrition — that has accelerated,” he says. “The bulk of the baby boomers are hitting the 60–65-time frame, so you’re going to get a shrinking workforce (if you have a hiring freeze) in a lot of companies.”
If you have a subscription to the Financial Post, you can read the full article by Jordan Gowling posted on September 26, 2025.
People Mentioned
Special Advisor, Ottawa
