Contract or permanent workers: What canadian employers are choosing in times of uncertainty

As Canadian businesses face the volatility of Q4, driven by economic uncertainty, rapid technological change, and shifting workforce expectations, strategic talent decisions have never been more critical. Employers are being urged to rethink not just who they hire but how they manage their workforce in the face of the unknown.

In this blog, we'll examine the key factors influencing the choice between contract and permanent workers in today's climate. We'll also explore how Managed Service Programs (MSPs) offer a scalable, strategic approach to contingent workforce management, helping businesses stay agile, control costs, and confidently navigate what's next.

Read more as we dive into the strategies shaping workforce decisions across Canada.

Back to basics

One thing is clear when choosing between contract and permanent workers: it all comes down to the function they serve within your organization. Many Canadian businesses, especially in sectors like construction, engineering, technology, and professional services, are increasingly operating on project-based models due to evolving economic conditions. In these cases, contract workers offer the flexibility and speed needed to meet short-term goals.

However, permanent workers remain essential for long-term stability, culture-building, institutional knowledge, and strategic continuity. Understanding the role each worker plays is the first step in building a resilient workforce.

Economic uncertainty demands a smarter workforce strategy

In today's unpredictable market, the decision between contract and permanent hiring is no longer just about cost. It is about adaptability, risk management, and future-proofing your business. With Q4 pressures mounting and 2026 planning underway, employers need to align talent decisions with broader business goals.

This is where strategic workforce models, such as MSPs, come into play.

MSPs are gaining ground in Canada’s workforce strategy

Managed Service Programs are gaining traction among Canadian employers as a way to streamline contingent workforce operations. In fact, the Managed Services market is expected to grow at an annual rate of 1.57% from 2025 to 2030, reaching a market volume of US$636.98m by 2030.

For those just beginning to engage with contingent workforce strategies, the absence of a Managed Service Program can result in:

• Fragmented hiring processes, with inconsistent workflows across teams or suppliers
• Limited visibility into workforce spends, performance, and compliance
• Slower time-to-fill, primarily for contract roles that require speed and agility
• Increased compliance risks, including misclassification and audit vulnerabilities

This is where Managed Service Programs deliver value.

Hays' MSP solution is designed to build a structure from the ground up. It centralizes supplier management, standardizes processes, and ensures compliance across all contingent hiring. Users benefit from improved cost control, enhanced visibility, and faster access to qualified talent.

What’s next for your organization tackling Q4

Whether you're preparing for 2026 planning or responding to immediate Q4 pressures, understanding when to leverage contractors versus permanent staff and how Managed Service Programs fit into that equation can help your business stay agile, control costs, and confidently navigate what's next.

For a deep dive into how MSPs work and what they can do for your business, download our MSP guide.

Looking for a conversation? Contact our experts to explore what's possible for your workforce.