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Home FINANCE

Why Toronto’s Finance Firms Struggle to Hire in 2025

by Ethan
7 months ago
in FINANCE
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Toronto is the second‑largest financial centre in North America and its companies collectively employ more than 270,000 professionals. Yet the city’s banks, insurers and fintech start ups are finding it harder than ever to add new talent.

Table of Contents

  • The Numbers Behind the Squeeze
  • What Hiring Managers Are Saying
  • Skill Mismatch and Technology Pressure
  • Counter Offers and Retention Risk
  • Four Tactics to Win Talent Now

The Numbers Behind the Squeeze

Canada’s national unemployment rate sat at 6.9% in June 2025 while Ontario’s was higher at 7.8%, according to the June 2025 Labour Force Survey. Those headline figures mask an even tighter scene on Bay Street. Robert Half’s mid‑year Demand for Skilled Talent report shows unemployment below 2% for controllers, senior financial analysts and compliance specialists.

Corporate appetite for fresh staff remains strong. Nearly half of Canadian employers (46%) plan to create permanent positions in the first half of 2025 and another 49% expect to back‑fill vacancies, according to a Robert Half Canada press release. That demand collides with a limited supply of accountants who hold both analytic and technology skills.

What Hiring Managers Are Saying

“Most outstanding finance professionals are not looking at job boards. We must meet them long before a requisition is approved.”, say Ben Lamarche, General Manager at Lock Search Group

Lamarche explains that his team invests heavily in passive talent mapping. Average search timelines for senior finance roles have stretched to roughly 90 days versus about two months in 2022, based on Lock Search Group’s internal data. “Moving quickly from first conversation to final offer is critical when the best candidates can choose among three or four employers, added Lamarche.

Skill Mismatch and Technology Pressure

Traditional accounting knowledge is no longer enough. Employers want candidates who can build scenario models, interpret real‑time dashboards and evaluate environmental, social and governance (ESG) risks. Lamarche says that some firms still post generic job ads that recycle decade‑old language, which fails to attract data‑savvy talent. “Finance leaders request candidates who understand Python, Power BI and carbon disclosure frameworks. That combination is rare, and it usually takes a personal referral to surface.”

Counter Offers and Retention Risk

Even after an offer is accepted, retention is not guaranteed. Hiring managers in Robert Half’s survey said their top fear is delayed timelines caused by unfilled roles. Lamarche has witnessed a rise in counter‑offers that include retention bonuses and guaranteed promotions.“Strong finance professionals know the market favours them. They negotiate aggressively and they walk away if a company moves too slowly”, said Lamarche.

Four Tactics to Win Talent Now

  • Streamline the process. Group interviews into a single week and delegate final approval to the hiring manager to shorten decision cycles.
  • Sell the mission. Outline how the role drives growth in new products, sustainable finance and digital transformation.
  • Showcase flexibility. Hybrid schedules and clear career path milestones are no longer perks; they are baseline expectations.
  • Partner with specialists. Executive recruiters build passive pipelines months before openings appear, giving employers first access to hidden talent.

As Lamarche puts it, “The companies that treat hiring like a revenue‑producing activity (measured, proactive and candidate‑centred) come out ahead.” With competition poised to intensify, finance leaders who act on that advice will be best positioned to keep Toronto’s economic engine humming.

Ethan

Ethan

Ethan is the founder, owner, and CEO of EntrepreneursBreak, a leading online resource for entrepreneurs and small business owners. With over a decade of experience in business and entrepreneurship, Ethan is passionate about helping others achieve their goals and reach their full potential.

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