The Centre for Workforce Development (CFWD) has released its 2026 Local Labour Market Plan report, offering a comprehensive look at the economic realities shaping Hastings, Prince Edward, and Lennox & Addington Counties…including a cautiously optimistic outlook for the future.
Drawing on extensive primary and secondary research, including employer surveys and regional consultations, the report paints a picture of a labour market in transition marked by disruption, resilience, and emerging opportunity.
A Year of Economic Disruption and Uncertainty
The past year (2025-2026) brought significant economic challenges to the region, impacting hundreds of workers. Major events included business closures, employee layoffs and restructuring across retail, education, and agriculture sectors, alongside a slowdown in tourism tied to inflation and reduced consumer spending.
These pressures were compounded by broader economic forces such as rising operating costs, supply chain disruptions, and global trade uncertainty. According to the report, these factors contributed to job losses, business closures, and a cooling in key sectors like hospitality and some areas of manufacturing.
Strong Demand Across Key Sectors
Despite these challenges, the report highlights strong and sustained demand for workers in several critical industries.
Healthcare continues to face urgent labour shortages, with high demand for roles such as nurses, personal support workers, and physicians. Construction and skilled trades are also under pressure, driven by both new development and a wave of retirements.
Other sectors with notable demand include advanced manufacturing, Canadian military (personnel, Reserves and contractor roles) and public safety such as policing and paramedics.
Labour Shortages Are a Systems Issue
One of the report’s most important insights is that labour shortages are not simply about a lack of workers, but increasingly they are rooted in broader systemic challenges.
Employers identified several key barriers to workforce participation:
- Housing shortages limiting the ability to attract workers
- Childcare access issues, with waitlists in the hundreds
- Transportation gaps, particularly in rural areas
- Challenges integrating families relocating for work
These structural issues are directly impacting recruitment and retention across industries.
By the Numbers: Key Labour Market Insights
The report includes several important statistics that highlight the region’s workforce dynamics:
- 62% of employers expect to hire for managerial roles in the next two years
- 55% plan to hire for administrative and operations roles
- 47% anticipate hiring for support roles such as technicians and customer service staff
- Only 10% of employers reported expected layoffs, indicating overall stability
The data also underscores the region’s economic structure:
- Approximately 70% of businesses across Hastings, Prince Edward and Lennox & Addington counties are self-employed enterprises
- Micro-businesses (fewer than five employees) represent the second largest share of employers
The Rise of Skills-First Hiring
A major theme emerging from the report is a shift toward skills-first hiring. Employers are placing greater emphasis on transferable (soft) skills, including:
- Teamwork and collaboration (65%)
- Work ethic and reliability (61%)
- Communication skills (60%)
At the same time, digital literacy is becoming essential, with:
- 72% of employers requiring basic computer skills
- 44% seeking advanced digital or AI-related skills
Artificial Intelligence (AI) and the Future of Work
The report also highlights the growing influence of artificial intelligence on the regional economy. Currently, only 12.5% of Canadian businesses have adopted AI, but momentum is building, with 45% of employers across Canada claiming they are investing in AI training for their workers. Experts project AI could contribute $122 billion to Ontario’s GDP over the next decade, signaling a major shift in how work is performed across sectors.
Small Businesses Drive the Economy
Small and medium-sized enterprises (SMEs) remain the backbone of the local economy:
- Approximately 80% of employers have five or fewer staff
- Another one-third employ between 6 and 50 workers
This structure means employees are expected to be adaptable, multi-skilled, and capable of taking on diverse responsibilities.
A Region Poised for Opportunity
While the report acknowledges real economic pressures, it ultimately delivers a message of resilience.
“The story of our region in 2025 was not defined solely by closures or contraction. It was defined by transition,” notes CFWD Executive Director, Sandi Ramsay. “With strong demand in key sectors, increasing investment in skills and technology, and a collaborative approach to workforce development, the region is positioned to adapt and grow.”
Looking Ahead
The 2026 Local Labour Market Plan report emphasizes that the future of the local labour market will depend on coordinated efforts across sectors—from employers and educators to policymakers and community organizations. Addressing structural barriers, investing in skills development, and embracing innovation will be key to building a sustainable workforce.
“The future of work in our region will be shaped not only by external forces, but by our collective willingness to invest in skills, embrace innovation, and collaborate across sectors. We are not standing still. We are preparing — together — for what comes next,” adds Ramsay.
To view the CFWD’s 2026 Local Labour Market Plan (LLMP) report visit https://www.cfwd.ca/labour-market-information/labour-market-reports/
The Centre for Workforce Development (CFWD) is your trusted authority on local labour market trends and workforce issues in Hastings, Prince Edward, and Lennox & Addington Counties. As one of 25 non-profit Workforce Planning Boards across Ontario, funded in part by the Government of Canada and the Government of Ontario, CFWD plays a vital role in providing timely, evidence-based labour market research and driving strategic workforce development initiatives. To explore data, reports, and community-driven projects shaping the future of work in our region, visit CFWD.ca.
