As we move further into 2025, industries like healthcare, technology, and construction face a critical challenge: skills gaps and talent shortages. Despite an increase in job opportunities, many organizations struggle to find candidates with the right mix of technical expertise, hands-on experience, and soft skills.
To stay competitive, Canadian employers need effective strategies to attract, develop, and retain top talent. Here’s how to address the skills gap and solve the ongoing talent shortage in 2025.
Several key factors are contributing to the growing skills gap and labour shortages across Canadian industries:
One of the most effective ways to address the skills gap is through skills-based hiring. This approach focuses on evaluating candidates based on their abilities and potential rather than just formal education or traditional job titles.
In an interview with The Globe and Mail, Agilus CEO Craig Brown highlighted the importance of this shift:
“When we focus on what candidates can do instead of just where they’ve been, we open doors to untapped talent pools and create more equitable hiring opportunities.”
— Craig Brown, CEO, Agilus
Skills-based hiring helps employers:
A strong employer brand helps companies stand out in a competitive job market. Job seekers are more likely to apply to organizations known for positive workplace culture, professional growth opportunities, and strong leadership.
Pro Tip: Showcase employee success stories, promote your company culture on LinkedIn, and highlight your values in job postings to attract qualified candidates.
Generic job ads no longer cut it. Targeted recruitment focuses on reaching specific talent pools with the right skills for your open roles.
Pro Tip: Write clear, concise job descriptions that focus on key competencies to attract a wider range of qualified candidates.
Instead of competing for a limited talent pool, many employers are investing in upskilling and reskilling their current workforce to meet evolving business needs.
Pro Tip: Conduct regular skills assessments to identify gaps and create personalized development plans for employees.
Creating strong partnerships with colleges, universities, technical schools, and recruitment firms can help you develop a long-term talent pipeline. Recruitment firms offer valuable insights into current market trends, in-demand skills, and access to diverse candidate pools, helping bridge the gap between education and employment.
Pro Tip: Collaborate with both educational institutions and recruitment firms to align academic programs with real-world industry needs, ensuring graduates are job-ready and connected to employers actively seeking their skills.
Flexible work arrangements—like remote work, hybrid schedules, and flexible hours—can help you tap into a broader talent pool beyond your local area.
Pro Tip: Consider implementing “returnship” programs to help professionals re-enter the workforce after a career break.
Solving the skills gap isn’t just about hiring—it’s also about retaining top talent. High turnover exacerbates labour shortages, making employee retention strategies critical.
Pro Tip: Conduct regular employee feedback surveys to identify issues early and foster a culture of continuous improvement.
Closing Canada’s skills gaps and labour shortages requires a proactive approach. As Craig Brown of Agilus highlights, skills-based hiring is key to business growth.
By investing in your employer brand, developing talent from within, and fostering inclusive hiring practices, you can build a resilient, future-ready team.
Need help bridging the skills gap? Agilus helps Canadian employers attract, engage, and retain top talent in today’s competitive job market. Visit our website to speak with an Agilus recruitment expert.