This data comes from the small and medium-sized enterprise (SME) sector, which makes up more than 99 percent of employers and 38 percent of the private-sector workforce.
Wages and prices are expected to rise by an average of 2.3 percent, also at a two-year low.
According to Simon Gaudreault, chief economist, and vice-president of Research at CFIB, “Labour market indicators clearly show employers are on the brakes. At the same time, price and wage plans are on par and overall are trending downwards, which is good news.”
Meanwhile, 53 percent of businesses report that insufficient demand is hindering their growth, a figure that is nine points higher than the historical average.
Firms are also grappling with multiple cost constraints. Insurance, taxes, and wages are cited as top concerns by 68 percent, 67 percent, and 67 percent of businesses, respectively. These figures have remained above their historical averages for over a year.