Canadian SMB Wages Continue to Outpace Inflation as Patio Season Drives Summer Hiring Surge, New Employment Hero Data Shows

Hospitality and retail hiring accelerate ahead of summer, while several regional SMB economies continue to outperform despite broader labour market caution

TORONTO, May 12, 2026 /CNW/ - Statistics Canada's latest Labour Force Survey shows Canada's labour market remains cautious amid ongoing economic uncertainty, with national employment largely unchanged in April. But beneath the surface, small businesses are telling a more nuanced story.

New data from Employment Hero, the global AI-powered employment platform, shows SMB wages rose 4.2% year-over-year in April, continuing to outpace inflation (2.4%) even as overall SMB employment declined -0.9% nationally.

The findings come from Employment Hero's newly launched first-party data engine, a monthly snapshot of labour market activity across nearly 3,000 Canadian SMBs, designed to complement broader labour reporting with a real-time view of how smaller businesses are responding to changing economic conditions.

While hiring remains soft overall, consumer-facing industries are proving more resilient ahead of the busy summer season.

Employment across retail, hospitality and tourism rose 3.8% year-over-year, while wages in the sector climbed 10.6%, the strongest wage growth recorded across all industries.

With patios reopening, festivals approaching, and Environment and Climate Change Canada forecasting one of the hottest years on record globally, Employment Hero says many businesses tied to seasonal demand are continuing to hire despite broader economic caution.

"Canadian small businesses aren't shutting down hiring, they're getting far more selective about where they place their bets," said KJ Lee, CEO of Employment Hero Canada.

"Businesses tied to consumer demand don't have the luxury of waiting things out. If patios are filling up, festivals are around the corner and customers are spending, employers need people on the ground now."

Employment Hero's data also suggests businesses are increasingly favouring flexibility, with casual employment rising 12.7% year-over-year, pointing to a growing reliance on more adaptable staffing models.

"SMBs are under pressure from every direction: wage expectations, operating costs and an economy that still feels unpredictable," Lee said.

"That doesn't mean hiring stops. It means businesses become sharper and far more pragmatic about how they build teams."

Regional snapshot: where SMBs are still hiring

While national hiring remains soft, several regions continue to outperform YoY:

• Saskatchewan: Employment up 5.7% , wages up 5.7% (also saw recent MoM growth)
• Alberta: Employment up 2.0%, wages up 5.4% (also saw recent MoM growth)
• Nova Scotia: Employment up 4.7%
• New Brunswick: Employment up 2.5%
• Quebec: Employment up 3.8%
• Ontario: Employment down -1.8%, though wages still rose 3.3%
• British Columbia: Employment down 4.4%, while Vancouver wages climbed 5.5%

"National headlines rarely tell the whole story," Lee added.

"What this data shows is that Canada's SMB economy isn't moving in one direction. Some regions and sectors are still growing aggressively, while others are becoming more cautious and many businesses are trying to balance both realities at once."

As smaller businesses are often among the first to respond to shifts in customer demand, cost pressure and confidence, Employment Hero says its data offers an early signal of where broader labour market trends may head next

Media Contact
Primary: Samantha Krupa-Carbone
NATIONAL Public Relations
[email protected]
647-502-4098

Secondary: Megan Felsing
Communications Lead, Employment Hero
[email protected]
587-575-5273

Notes to editors

About Employment Hero

Employment Hero is the global authority on employment, offering a world-leading Employment Operating System (eOS) that simplifies and optimizes every stage of the employment process. Its award-winning platform combines HR, payroll, recruitment, and employee engagement tools with the groundbreaking employment superapp, EH Work, which integrates career management and financial wellbeing. Serving over 350,000 businesses and managing more than 2.5 million employees worldwide, Employment Hero reduces administrative burdens by up to 80%, enabling organizations to focus on their goals and create more productive, engaged teams. By revolutionising the employment marketplace, Employment Hero is making employment easier, more valuable and rewarding for everyone.

Methodology

The Employment Hero Data Engine is powered by data directly drawn from the Employment Hero payroll platform, reflecting the labour market of Canada's resident population aged 14 years and over.

Employment growth is measured as the percentage change in average employees per business, using a "cohort-adjusted approach", whereby only businesses billed in both periods are included. Wage growth is calculated from payslips, using only employees with at least six months of valid records to avoid skew from bonuses or probationary rates.  

SOURCE Employment Hero