Littler Report
The Littler 2026 Canadian Employer Survey Report
Canadian employers are navigating a complex landscape, as U.S. tariffs and economic uncertainty add to pressure around changing workplace norms and an evolving regulatory environment. Rising AI adoption, shifting on-site work expectations, and differing requirements across jurisdictions are among the many developments changing how employers manage their workforces.
Littler’s 2026 Canadian Employer Survey Report examines how C-suite executives, in-house lawyers and human resources professionals are responding to these economic, workplace and regulatory changes. The inaugural report draws from a survey of 200 executives at organizations across a range of industries and company sizes.
Key Findings
- More than three-quarters of Canadian employers (77%) have taken at least one workforce-related action in response to business or economic pressures over the past year. Paused or reduced hiring was the most common response, cited by 46% of respondents, followed by layoffs or reductions in force (35%) and increased use of automation or AI to reduce labour needs (28%). Among employers that took workforce actions, 83% say U.S. tariff-related disruptions contributed to their decisions.
- More than half (55%) of Canadian employers have updated job postings to address pay transparency requirements and expectations, and 37% have conducted pay equity, compensation or pay-gap reviews. Among those with Québec operations or employees, just 40% have developed or updated prevention programs, policies or action plans to address new psychosocial risk requirements.
- In response to actual or anticipated increased AI use, 44% of respondents have reassessed or are reassessing job responsibilities. More than a third (36%) have reduced or are reducing hiring, while 33% have made or are making workforce reductions. At the same time, fewer than half report having a formal workplace AI policy (49%) or a formal review or approval process for AI tools or use cases (42%).
The full 2026 Canadian Employer Survey Report examines these and other workplace trends in detail, including changes to in-office work requirements, increased employee requests for flexibility and accommodations, AI governance, regulatory requirements, and employer preparedness for union organizing and collective bargaining.
