2025 is well underway. Do you have your recruitment strategy for this year? Do you plan to hire this year, hold off, or even reduce the size of your team this year? There is certainly a lot going on within the industry (and the world) that can influence your hiring strategy. We get that many companies are unsure how to move forward so we spoke with our Toronto executive search team to get an understanding of the state of hiring in 2025. Here are some key things to consider when planning your hiring strategy this year:
- There is some uncertainty as we move forward
- New transparency laws come into effect and will change some things for employers
- AI will play a bigger role in the recruitment industry
There is Some Hiring Uncertainty As We Move Forward
In the time that I planned this blog topic and sat down to write it, a lot of things have changed politically here in Canada and the United States. If I wrote this post a few months ago, we would have said there was a more positive hiring trend. Now things are much more murky.
Donald Trump is the new President of the United States. His threat of tariffs and other economic strategies could drive us into a recession. Then Prime Minister Justin Trudeau resigned as Liberal Party Leader on January 6th, 2025. Parliament is now suspended until March 24th. We will have a new Liberal leader and a new Prime Minister likely this spring. So, there is a lot of change, creating uncertainty for our economy.
As for the state of hiring, many are taking a wait-and-see approach. They want to see how things play out before making a final decision on how they’ll proceed with hiring this year. However, companies that choose to hold off could find themselves in a bind to find great talent if they wait too long.
Forward-thinking companies recognize this economic uncertainty as a unique opportunity to find great talent now. They see it as a way to gain a competitive advantage. Are you going to stay stagnant while your competitors surge past you? History has shown that stagnant companies stay stagnant. Making bold choices is what helps companies become industry leaders. People are still going to look for jobs and top talent will be available. So capitalize now while others are waiting. Don’t let unknown actions determine your future. Take action and take control of the future of your organization.
Transparency Laws Come Into Effect
New transparency legislation, Bill 149, will come into effect in 2025 and at the start of 2026. Employers in Ontario must review and update their hiring and documentation practices to ensure compliance with the new regulations or risk fines and other sanctions. Here is what is changing:
Employment Information Requirements
As of July 1, 2025 employers are required to provide employees with the following employment information:
- Legal name of the employer
- Contact information address, telephone number and at least one contact name
- A general description of the location where the employee performs work.
- Starting hourly, other wage rate or commission.
- The pay period and payday
- Description of initial anticipated work hours.
Read more: The Rise of Salary Transparency & What it Means for You
Job Posting Requirements
Starting January 1, 2026, employers with 25 or more employees must follow new guidelines for publicly advertised job postings (external job postings). Here is what will be required:
- The post must include the anticipated compensation range for the job.
- Employers must state if they use AI to screen or assess applicants.
- Posts must say if it’s for an existing vacancy. This is meant to help reduce Ghost Job Ads.
- Employers can no longer require Canadian work experience
- Companies must inform those interested if a hiring decision is made within 45 days of the interview date.
- Employers must keep a record of public job ads for three years after the ad has been removed.
Now is a great time to start reviewing and acclimating to the new employer pay and job post transparency requirements before they come into effect.
AI Will Play A Bigger Role In The Recruitment Space
Artificial Intelligence (AI) is primed to change the recruitment landscape in 2025. It will help make processes faster, more efficient, and highly personalized. However, AI cannot replace the human component of hiring. It’s best used as a support tool and not an end solution to your hiring process.
Here are 5 ways AI can affect the recruitment space:
1. Enhanced Candidate Screening
AI-powered tools will streamline the initial screening process by analyzing resumes and profiles with precision. These systems can evaluate qualifications, skills, and experience to identify top candidates faster.
2. Improved Candidate Matching
AI algorithms will match candidates to job roles with higher accuracy by analyzing not only hard skills but also soft skills, cultural fit, and career aspirations. This will lead to better employee satisfaction and retention rates.
3. Personalized Candidate Engagement
AI chatbots and virtual assistants will handle routine communication, such as answering queries, scheduling interviews, and providing updates. They will also deliver personalized experiences by tailoring interactions based on candidate preferences.
4. Data-Driven Decision Making
AI will provide deeper insights into hiring trends, talent availability, and market demands. Recruitment teams will use predictive analytics to anticipate future needs and develop proactive strategies.
5. Enhanced Onboarding Processes
AI will extend its role into onboarding, helping new hires adapt through personalized training programs, automated documentation, and virtual orientation sessions.
In 2025, AI can be an integral partner in the recruitment process. By leveraging its capabilities, organizations can create a more efficient, fair, and engaging hiring experience for both recruiters and candidates.
A Final Word On The State Of Hiring In 2025
As 2025 unfolds, the recruitment landscape is evolving rapidly, driven by economic uncertainty, legislative changes, and advancements in technology like AI. While challenges remain, these shifts also present opportunities for companies willing to adapt and innovate. By staying ahead of new transparency laws, leveraging AI to streamline processes, and taking bold steps in uncertain times, organizations can position themselves as industry leaders. The key is to act strategically, seize opportunities to attract top talent and prepare for the future with confidence. The companies that thrive in 2025 will be those that embrace change and use it to their advantage.
More Hiring Advice From Our Recruitment Team
5 Hiring Trends You Can Expect to See in 2025
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