As Canadians look ahead to 2026, confidence in the economic outlook is under real strain. Recent findings from Pollara’s annual economic outlook tracking survey paint a sobering picture. With pessimism reaching levels rarely seen over the past three decades, understanding what is driving these concerns is essential for anyone navigating today’s labour market. It is also a reminder of why employment and workforce development supports, like those offered through Job Skills, matter more than ever.
A clear majority of Canadians expect difficult economic conditions ahead. About 61 percent believe the national economy will deteriorate in 2026. This concern is closely tied to employment expectations, with 59 percent anticipating that Canada’s employment situation will worsen next year. For job seekers, this can heighten anxiety about finding work, changing careers, or securing stable hours. For employers, it raises practical questions about hiring plans, workforce stability, and long-term growth.
Job Skills works directly in this space, supporting job seekers as they prepare for changing labour market conditions and helping employers adapt their recruitment strategies. When uncertainty rises, access to reliable employment services, skills training, and labour market guidance becomes a critical advantage.
What is especially striking is that pessimism is not limited to Canada alone. Roughly 65 percent of Canadians expect the United States economy to weaken in 2026. This is the most negative view recorded since 2009, a year closely associated with global recession. Given how interconnected the Canadian and U.S. economies are, particularly in manufacturing, trade, and services, concerns south of the border quickly become concerns at home. Many Canadians see economic challenges in the United States as a direct risk to Canadian jobs and business stability.
One of the strongest drivers behind this gloomy outlook is uncertainty around U.S. economic policy. Worries about potential tariffs and shifting trade priorities weigh heavily on public confidence. In fact, concern about U.S. policy decisions ranks higher than most cost-of-living pressures, with the notable exception of food costs. For employers, especially those tied to export markets or cross-border supply chains, these concerns reflect real operational risks. For workers, they raise doubts about whether certain industries will remain resilient.
In this environment, proactive workforce planning becomes essential. Job Skills helps employers navigate uncertainty by connecting them with qualified candidates, supporting inclusive hiring practices, and offering guidance on retention and workforce development. Rather than pulling back entirely, employers can use periods of uncertainty to strengthen their teams and prepare for future demand.
At the same time, national pessimism does not always align with personal financial expectations. While Canadians may feel gloomy about the broader economy, some surveys suggest individuals are more optimistic about their own circumstances. This gap is important. It suggests that even when the macro outlook seems bleak, people still believe they can improve their situation through learning, adaptability, and informed career choices.
For job seekers, this is where targeted support makes a difference. Job Skills assists individuals in identifying transferable skills, exploring in-demand occupations, and accessing training opportunities that align with employer needs. Even during periods of economic uncertainty, employers continue to hire for roles facing skills shortages. Health care, skilled trades, technology, and community services often remain strong, and preparation can open doors that pessimism might otherwise obscure.
Employers face their own challenges in this climate. High levels of public pessimism can affect employee morale and candidate confidence. Clear communication about organizational direction, growth plans, and workforce needs becomes increasingly important. Employers who invest in employee development and work with organizations like Job Skills to build talent pipelines may be better positioned when economic conditions improve.
The broader context makes these findings especially noteworthy. Pollara’s survey shows that current levels of pessimism about the economy and jobs are among the highest in its 31-year history of surveying Canadians. That historical perspective underscores the seriousness of current sentiment, but it also highlights the value of experience and support systems that have helped Canadians weather past downturns.
As 2026 approaches, pessimism may dominate headlines, but it does not have to define outcomes. With the right supports, job seekers can build resilience and confidence, and employers can make strategic decisions that support both their businesses and their communities. Through employment services, training, and partnerships with local employers, Job Skills continues to play a key role in helping people and organizations navigate uncertainty with clarity and purpose.
ABOUT JOB SKILLS
Since 1988, Job Skills has been delivering solutions to job seekers and moving people into sustainable, meaningful employment. Throughout their long history, Job Skills has recognized that not every job seeker is the same. There is no one size fits all employment program. That’s why the Job Skills vision is building an inclusive society where all people are ensured equitable opportunities to fulfill their career aspirations and participate fully in the community.
Job Skills’ employment specialists are there to answer any of your employment questions. Job Skills‘ staff offer solutions to all job seekers, including youth, newcomers, mature workers, persons with disabilities, and entrepreneurs. Job Skills’ knowledgeable team can help you make educated decisions, set goals, and create a strategy to help you become happier in your career. Job Skills works with local employers creating employment opportunities for Job Skills’ clients.
Thanks to government funding, Job Skills’ programs and services are free to all users. Job Skills have locations across Keswick, Stouffville, Markham, Brampton, and Mississauga. Job Skills also offers virtual services for community members unable to attend one of our offices for in-person activities.
Find your employment solution today. Visit www.jobskills.org
