Hiring processes, expectations, communication out of alignment in slow market

The unemployment rate is increasing across Canada. Which should mean there are more people looking for work, but if you ask most employers, it certainly does not feel easier to find the right person.

In fact, it is appears to be harder for both sides. Many organizations are posting fewer roles, taking longer to make decisions and being more cautious overall, yet they are still struggling to make hires. At the same time, candidates are applying to more jobs than ever and feeling increasingly frustrated by a lack of response.

So what is going on?

Recent data paints a clear picture. Hiring activity has cooled slightly as organizations respond to economic uncertainty, with many choosing to maintain current staffing levels rather than expand aggressively. At the same time, unemployment has ticked up and more candidates have re-entered the job market, increasing competition for available roles.

Here is the part that surprises many people: even with more candidates actively looking, employers are still struggling to hire. About 77 per cent of Canadian employers report difficulty finding qualified talent.

This disconnect is the real story. It is not simply a people shortage or a lack of jobs, it is a mismatch.

Research suggests many job seekers feel there are not enough quality opportunities, while employers say they cannot find the right candidates. When both sides feel stuck, it is usually a sign hiring processes, expectations and communication are out of alignment.

This often shows up in a few predictable ways. Job postings become overly specific, asking for a long list of qualifications that narrow the candidate pool, perhaps unnecessarily. Hiring processes stretch out over weeks or months, causing strong candidates to disengage. Internal indecision or competing priorities slow things down further.

At the same time, candidates are applying to more roles, often with less tailoring, hoping something will stick. That creates volume but not always quality from the employer’s perspective, reinforcing the cycle.

The result is a labour market that feels difficult for everyone, even when the numbers suggest it should be easing for employers.

For managers, this is a moment to step back and reassess how hiring is actually being done.

Start with job design. Many organizations are still hiring for a “perfect candidate” who may not exist. If your posting reads like a wish list rather than a realistic description of what is required on Day 1, you are likely screening out capable people. Focusing on core skills and the ability to learn can significantly expand your candidate pool.

There is also increasing evidence supporting an abilities-first approach to hiring.

The premise is simple: while technical skills can be taught, it is often more effective to start with someone who is adaptable, thinks critically and brings strong transferable skills. Despite this, many hiring processes continue to prioritize strict experience requirements or formal credentials. Re-examining hiring criteria to identify where the organization is willing to invest in training is a practical way to help close this gap.

Speed matters more than many organizations realize. In a competitive market, strong candidates are often considering multiple opportunities. Long delays between interviews or unclear next steps can lead to losing people who were genuinely interested. Even small improvements, such as setting clear timelines and sticking to them, can make a noticeable difference.

Communication is another area often overlooked. Candidates consistently report frustration with a lack of updates or feedback. While it may not be realistic to provide detailed feedback to every applicant, timely communication at key stages helps maintain engagement and strengthens your employer brand.

Finally, hiring managers need to be realistic about trade-offs. If compensation, flexibility or growth opportunities are below market expectations, the search will take longer. In a slower hiring environment, candidates may be more available but they are still making choices based on value.

For candidates, the shift in the market also requires a different approach.

Applying to dozens or even hundreds of roles without tailoring your application is unlikely to yield strong results. As hiring slows, competition increases and employers become more selective. A targeted approach, where you clearly connect your experience to the role, is far more effective.

Understanding what employers are actually looking for is equally important. Many postings list a wide range of qualifications, but not all of them carry equal weight. Focus on demonstrating the core skills that matter most, rather than trying to match every line of the posting.

Networking continues to play a significant role, particularly in a slow hiring market. With more candidates in the mix, referrals and internal connections can help your application stand out. This does not mean relying solely on who you know, but it does mean being proactive in building and maintaining professional relationships.

Candidates should also be prepared for longer timelines. Hiring processes are taking more time in many organizations due to increased scrutiny and internal approvals. Following up professionally and maintaining momentum in your search can help manage this reality.

Perhaps most importantly, both employers and candidates need to adjust their expectations.

The labour market is no longer as tight as it was a few years ago, but it has not swung to the opposite extreme either. It is more complex than that. There are more candidates, but not always with the right skills. There are open roles, but not always structured in a way that attracts the right people.

For employers, this is an opportunity to refine hiring practices and focus on what truly drives success. For candidates, it is a chance to be more strategic and intentional in how they present themselves.

Hiring may be slowing, but it has not become easier. Success will depend on a willingness to rethink what good hiring looks like and where potential can outweigh perfect experience.

Tory McNally, CPHR, BSc., vice-president, professional services at TIPI Legacy HR+ (formerly Legacy Bowes), is a human resource consultant, relationship builder and problem solver. She can be reached at tmcnally@tipipartners.com