Labour Shortages Cost Canadian Businesses A Lot

The lack of skilled workers costs Canada’s economy tens of billions of dollars every year. The current labour shortage has very negative impact on most Canadian companies. A recent survey by the Business Council of Canada indicates that more than 66% of companies have had to adjust timelines for projects due to a lack of skilled workers.

60 % of firms are grappling with lost revenues. The BCC surveyed 80 member companies that employ a total of nearly 1.7 million Canadians across 20 industries, from energy to financial services, generating revenues of about $1.2 trillion as of 2020. Even with businesses adjusting hiring expectations in the current labour market, the BCC found that 30 per cent of the companies surveyed are relocating work outside of Canada in order to get projects done.

The BCC survey found that companies are struggling the most to fill technical jobs, which require skills in computer science and engineering, as well as skilled-trade roles, such as construction, plumbing and electrical work. Data from Statistics Canada refers to noteworthy findings:

Out of 1000000 job vacancies the federal agency reported for April, there was a record-high number of openings in sectors like scientific and technical services, transportation and warehousing, finance and insurance, along with construction.

The BCC survey emphasized the importance of immigration when it comes to sourcing talent, with two-thirds of employers saying they depend on new Canadians to fill roles. Starting in 2025, immigration is projected to account for 100 per cent of the net growth in the labour market.

To fill roles in the tight labour market, some companies are willing to pay to train workers that lack the relevant skills needed for a job. This can cost firms thousands of dollars per worker. Some of the upskilling companies are paying for include post-secondary education, language and cultural training and other professional development opportunities that help workers recalibrate their skills.

While businesses are struggling to fill open jobs, the labour shortage offers a silver lining for Canadians looking for work. With the unemployment rate hitting a record-low in May, job seekers and workers have more leverage than ever over factors like salaries, paid time off and other job benefits. If there was ever a time to go after a dream job, even if you don’t have all of the skills required for it, now might just be it.