In times of economic uncertainty, job seekers and employers alike must adapt to shifting hiring trends. As 2025 begins, factors such as political transitions, inflation concerns, and global market fluctuations are influencing business decisions across industries.
For professionals looking for new opportunities, working with legal recruiters in Toronto can be a game-changer. These recruiters understand the nuances of the market, maintain strong industry connections, and provide valuable insights to help candidates secure roles even in uncertain times. In this guide, we’ll explore what’s driving economic uncertainty in Canada, how it may impact your job search, and practical strategies to stay competitive in the legal job market. We’ll discuss:
- What is causing economic uncertainty in Canada?
- 7 ways economic uncertainty may impact your job search
- 6 job search tips for candidates to succeed during economic uncertainty
What is causing economic uncertainty in Canada?
There is a mixture of factors that are causing some economic uncertainty in Canada at the start of 2025:
- New political leaders: We have a newly re-elected Premier in Ontario, Doug Ford. We also have a new Liberal Party leader, Mark Carney. There is also an impending Federal Election, which could happen as soon as this spring.
- Tariffs: Are they on or off? Are they 25%, more, or less? The uncertainty surrounding the current tariff war with the United States is causing many companies to pause and wait to see how things play out.
- Inflation: Even though inflation has come down recently, it could increase again, as could interest rates.
- Unpredictability in the US: The Trump administration is unpredictable, which leads to unpredictability in the market and with companies.
7 ways economic uncertainty may impact your job search
Economic uncertainty can significantly impact the job market, making job searches more challenging and competitive. Whether due to global financial crises, inflation, or industry-specific downturns, uncertain economic conditions often lead to shifts in hiring practices. Here’s how economic uncertainty may affect your job search and strategies to navigate these challenges effectively.
1. Layoffs
When the economy heads for a downturn, companies look for ways to reduce operating expenses. Often, this means payoffs, reduced worker hours, and pausing contracts with agencies, contractors, and freelancers. If you are in a stable role, you may want to put your job search on hold until the economy takes a turn for the better.
2. Reduced Job Openings
During periods of economic instability, companies often cut costs, which may include slowing down hiring or freezing recruitment altogether. This reduction in job openings means fewer opportunities for job seekers, leading to increased competition for available positions. Expect to see fewer ads, and if you see a good opportunity, ask quickly.
3. Longer Hiring Processes
Companies may take longer to make hiring decisions due to budget constraints or shifting business priorities. This can result in prolonged interview cycles and delayed job offers. Companies may need to hire but also want to hold off as long as they can to see how things play out in the economy. For job seekers, this means being more patient while employers make recruitment decisions.
4. Increased Competition
With fewer job openings and more job seekers, the job market becomes more competitive. Employers may receive a higher volume of applications, making it more difficult to stand out. For candidates, this means putting in your maximum effort to customize your resume and interview strategy to align with employers you want to work for.
5. Shift Toward Contract and Gig Work
In uncertain times, companies may rely more on contract, freelance, or temporary workers rather than hiring full-time employees. This allows them to maintain workforce flexibility while controlling costs. Consider taking on some gig work to bring in income while you search for the right permanent position.
6. Greater Emphasis on Skills and Adaptability
Employers may prioritize candidates with versatile skill sets and the ability to adapt to changing business needs. Hard and soft skills, including problem-solving, communication, and digital proficiency, become increasingly valuable. Highlight these skills on your resume and LinkedIn profile and when speaking with hiring managers during the interview process.
7. Networking Becomes Even More Critical
With fewer job postings, networking becomes an essential tool for uncovering hidden job opportunities. Many job openings are filled through referrals rather than public listings. Candidates need to reach out to their network and put out feels to let people know they are looking to make a career move.
6 job search tips for candidates to succeed during economic uncertainty
Our recruiters recommended that candidates follow these tips to have more success looking for a job during uncertain times:
- Cast a wider net: Expand your job search to multiple industries and consider roles that align with your skills, even if they are outside your primary field.
- Be patient: Practice patience and persistence. Follow up with employers professionally and continue applying to multiple opportunities to keep momentum in your job search.
- Get laser-focused: Tailor your resume and cover letter for each job application, highlighting your most relevant skills and accomplishments. Leverage professional networking platforms like LinkedIn to connect with industry professionals and recruiters.
- Consider all opportunities: Be open to temporary or contract roles, as they can provide valuable experience and potential pathways to full-time employment.
- Add more skills: Invest in upskilling through online courses, certifications, and training programs to enhance your qualifications and demonstrate your adaptability.
- Put yourself out there: Attend industry events, join professional associations, and engage in online networking to expand your connections and gain insider information on job opportunities.
A final word about looking for jobs during economic uncertainty
Navigating the job market during economic uncertainty can be challenging, but with the right approach, candidates can still find rewarding opportunities. By staying informed about economic trends and being adaptable in your job search, you can increase your chances of securing a position. For more tips on getting hired, check out our Ultimate Job Interview Guide.
More About How Economic Factors Affect The Job Market
7 Ways to Build Job Security In a Fragile Economy
How to Boost Morale Amidst Economic Uncertainty and Layoff Fears
Will an Economic Downturn Mean the End of Workplace Flexibility?
