THE HOSPITALITY INDUSTRY in Canada is making money again, generating $104 billion in spending in 2025, according to The Staffing Agency. Nevertheless, hotels are having trouble holding onto workers.
Staffing Agency’s report “Beyond the Boom: Canada’s Hospitality Labor Market in 2025 and the Road to 2030” found that Canada’s employment is higher than pre-pandemic levels in 2019. However, hotels in the country are hiring part-time roles where students, newcomers and temporary workers fill critical roles rather than long-term staff. The report calls this the “labor paradox,”
While this trend keeps operations running, it drives turnover and weakens reliability, Staffing Agency said in a press release. Hotels’ margins are tightening as labor costs now include higher wage floors, added premiums in expensive cities, benefits and the ongoing cost of turnover and training.
“In Canada, the wage increase isn’t a threshold; it’s the new baseline,” said Steven Kamali, Staffing Agency CEO. “The question now isn’t if we can pay more, but if we can make the model work.”
The report also found that, in major cities such as Toronto, Vancouver or Montreal, workers can’t afford to live near their jobs. As a result, they face longer commutes and sometimes shifts go unfilled. Increased union activity in urban centers is affecting scheduling, pay structures and operations.
“The pressure is not limited to Canada,” Kamali said. “In the U.S. also, wage growth is outpacing productivity in many markets, while housing constraints continue to shape labor availability. Canada’s reliance on international talent adds another layer of sensitivity to policy changes.”
According to The Staffing Agency, the solution is to build a more reliable talent pipeline, address housing near job centers and tailor workforce strategies by region.
In March, a survey by the American Hotel & Lodging Association found 65 percent of hoteliers reported labor costs as an ongoing concern.
