Future of work

Main findings  

Canadian households remained cautious about the economy in early 2026. Concerns about inflation, job security, and future economic conditions continue to affect spending and financial expectations.

Key takeaways 

• Consumers intend to spend less because of high prices and economic uncertainty.
• Concerns about job loss remained elevated, particularly in sectors more likely to be affected by automation and AI.
• Near-term inflation expectations remained above historical norms, especially for food prices.
• Consumer sentiment improved somewhat as trade tensions eased, but remained below pre-2025 levels.
• Households continue to expect external events, including geopolitical conflict, to affect economic conditions and prices.

Plain language summary  

Canadian households continued to express concerns about the economy in the first quarter of 2026. Although confidence improved slightly compared with previous quarters, many households still expected weak economic conditions and higher prices in the near term.

Spending intentions remained cautious. Many respondents said that high prices and economic uncertainty were affecting their financial decisions. Consumer spending is closely tied to economic activity, so weaker spending can also affect business conditions and hiring.

Concerns about job security also remained elevated. According to the survey, workers in sectors with greater exposure to automation and AI were more likely to report concerns about job loss.

Inflation expectations remained above historical averages, particularly for food prices. Expectations about rising costs can influence decisions about household spending, savings, and employment.

Overall, while some signs of public confidence have improved, the survey suggests that many households continued to feel uncertain about the economic outlook in early 2026.

Why the results matter

For post-secondary institutions and students:

The survey highlights ongoing uncertainty about future labour market conditions. Students and institutions may benefit from tracking how technological change and economic conditions are affecting employment expectations across sectors.

For employers and employment services:

Cautious consumer spending and continued concerns about job security may affect hiring plans and workforce stability in some sectors. Employment services may also see ongoing demand for career support and job transition assistance.

For educators, CDPs, and job seekers:

Concerns about automation and AI may influence how workers think about career planning, training, and job stability. CDPs can help job seekers understand changing skill requirements and labour market conditions.

For people in the LMI ecosystem:

The findings provide insight into how Canadians perceive economic and labour market conditions, including inflation, employment prospects, and technology-related change. Perceptions and expectations can shape workforce decisions even before measurable labour market changes occur.

For most Canadians:

Many Canadians continued to feel uncertain about the economy in early 2026. Concerns about prices, employment, and future economic conditions continued to influence household decision-making.

Definitions

• Inflation expectations

What households believe will happen to prices in the future.

• Consumer sentiment

How households feel about current and future economic conditions.

• Automation

The use of technology to perform tasks that were previously completed by people.

Notes and important disclaimers

• The survey reflects household perceptions and expectations, which may differ from future economic outcomes.
• Responses reflect consumer sentiment during the first quarter of 2026 and may change as economic conditions evolve.
• Survey outcomes do not predict future labour market or inflation outcomes.