The U.S. dollar reached multi-decade highs at the start of 2025. This prompted many market watchers to wonder what might happen next. The impressive run has raised questions about hiring in Canada and whether it still makes sense to employ Canadians, considering the dollar’s strength. Today, we examine that question and offer guidance on which moves make the most strategic sense for you.

Labour Market Advantages

There are certainly currency advantages to consider when hiring in Canada, but they are not the only factor to evaluate. You should also consider the benefits of the labor market in Canada compared to the United States. For example, did you know that Canada has the most educated workforce of the G7 nations? Statistics Canada, a government-run website, notes the following:

Canada continues to rank first in the G7 for the share of working-age people (aged 25 to 64) with a college or university credential (57.5%). A key factor in this is Canada’s strong college sector: nearly one in four working-age people (24.6%) had a college certificate or diploma or similar credential in 2021, more than in any other G7 country.

This should be eye-opening for any employer considering where to make their next hire. In addition to this, there are a few other labor market advantages in Canada that are worth noting, including:

• Lower Average Salaries in Canada: According to the most recent Census, the median Canadian income in 2021 was CAD 68,400. In the United States, the median was USD 70,784. For reference, CAD 68,400 converts to USD 49,727 at today’s exchange rates. Therefore, employers can reasonably expect to offer lower average salaries to Canadian employees and still maintain employee satisfaction.
• High English Proficiency: English and French remain the primary languages spoken in Canada, and most Canadians speak English. As such, there are fewer obstacles when hiring in Canada than in other parts of the world.

These are two key points that cannot be overstated. Employers are always on the lookout for employees who can jump into a role without requiring extensive training, and Canadian employees certainly fit the bill.

Remote Work and International Expansion

Canada offers plenty of advantages for U.S. employers. Notably, there are opportunities for hiring remote workers and expanding internationally without stretching too far. Many U.S.-based employers plan to expand their operations to global markets. However, they don’t necessarily want to dabble in foreign markets that are far away and unfamiliar to them. Hiring in Canada offers the perfect solution to fulfill all of those desires.

It is also a great place to hire some remote workers. Remote work has become a key trend in today’s world, and it makes sense to keep those workers within a reasonable distance. In many cases, this means that everyone operates in the same or similar time zones, and it is far easier for teams to collaborate on projects. If you want to hire remote workers, you need to ensure that they can communicate effectively and align with the rest of your team.

The Currency Advantage

The relative strength of the U.S. dollar has proven to be a boon for U.S. employers hiring in Canada. This is because they get far more value for their money when they pay employees in Canadian dollars. The gap in the exchange rate has grown so large that there are tremendous cost savings in hiring Canadian employees.

Take this example as an illustration:

• At current exchange rates, USD 1 amounts to CAD 1.38. Therefore, it is possible to pay an employee a salary of CAD 50,000 at a cost of just USD 36,343. That is a 27% savings on salary alone!

This is a major reason why many U.S.-based employers are actively hiring in Canada to oversee the tasks they need. They understand that those employees can help them get the job done at a fraction of the cost of U.S. workers, and they are often just as proficient (if not more so) than their U.S. counterparts.

Volatility Is a Concern

No true analysis would suggest that any move in the business world is completely risk-free. Although it is certainly true that hiring in Canada at current exchange rates makes a lot of financial sense, that picture can change over time.

The currency markets are notoriously volatile, and the U.S. dollar might weaken over time. Following a strong start to the year, the U.S. dollar has dropped noticeably since that period. This could be typical market fluctuations, or it might be a sign of a bigger decline on the horizon. We won’t know for certain until those events play out. This is why all employers should proceed with caution and take steps to protect themselves against potential changes in currency market conditions.

Hiring in Canada Remains a Competitive Advantage

Despite the potential unpredictable headwinds of the currency markets, it remains true that hiring Canadian workers is an effective strategy for many American-owned businesses. It is a dynamic market with relatively low barriers to entry and numerous advantages. Hiring workers in Canada can expand a business’s footprint while making it easier than ever to break into new markets.

No one can say exactly what will happen in the currency markets. However, current conditions are aligned in a way that makes it very favorable for American-run businesses to step in. Consider all of the competitive advantages that something like this can bring to your team, and focus on bringing new Canadian workers today. For more details on how to get started and why hiring in Canada is a good idea, contact us today.