A survey from American Express Canada found that about 38 percent of Canadian small businesses plan on hiring some time in 2010. When including all companies in Canada it drops to 15 percent, but that's better than then the last couple of years where contraction was the practice of business, with many getting laid of during that time.
This shouldn't be taken as a huge move in hiring, even with the 38 percent numbers of small business, as that could mean an extra one or two workers at the companies hiring, although more than that at the larger firms of course.
Canadian firms that headhunt for executives say they've seen some pickup in orders as well, so it seems there is positive outlook across the spectrum of businesses, even if it's somewhat cautious.
Hopefully this isn't just wishful thinking and is based on growing market demand which justifies hiring more people.
Of course it could be companies are hiring back people they laid off in the past, and so may not be growth-oriented, but bringing things back to close to where they were before.
Another reason I think it's slow in getting started is there are many mixed signals in the market, and companies aren't going to go too far out on the limb in increasing costs until there is proof consumer and business demand is rising.
At this time I think there are both positive and negative signals from the data, and that leaves everyone somewhat subdued and cautious, while at the same time hoping some of the positive data ends up being the predominant reality.
In other words, it's about 50/50 there will be economic growth this year in most business sectors, and hiring is probably based on a more positive spin than negative. I think the 38 percent and 15 percent numbers thrown out should be taken as a best-case scenario and not a surety going forward.
The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com
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