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As of September 2021, the population of Canada sat at a grand total of almost 38 million inhabitants. With that in mind, it is difficult to comprehend the immense labour shortages that the country is greatly affected by.

Popular and highly successful immigration programs might appear to be an obvious solution to the problem, especially as Canada invites upwards of 300,000 immigrants a year via the Express Entry scheme and Provincial Nominee program. Yet, as stated in a recent report by The Royal Bank, the 2020’s will see more than five-million Canadians turning 65 as part of the baby-boom cohort, which will leave a tremendous imprint on Canada’s economy and its industries.

Labour shortages can have a profound impact on organisations. A company’s brand can be greatly compromised when client orders fall behind. Fewer staff means less manpower to complete tasks, and before long staff are overworked, productivity is vastly reduced, operations become more costly and clients are unhappy. Organisational competition soon amounts to very little, and recruiting new staff can become tricky when your reputation falls short of excellence.

Ontario, British Columbia and Atlantic Canada are amongst the areas that are most impacted by shortages, with many small-to-medium sized businesses struggling to fill both part-time and full-time positions. A recent study from The Harris Poll found that almost one-third of companies have vacancies that are firmly remaining in place; jobs that would usually fill within a matter of days are still vacant a month later.

Graduates are also contributors to empty office desks, citing their desire for increased salaries and greater flexibility. Tuition fees have almost doubled in a decade, so the requirement for a particular salary is at an all time high. Equally, the graduate employment pool is inundated with applications from an increased number of applicants; a further obstacle within the cycle of study-work where graduates are failing to pass the first hurdle.
Graduates are not the only demographic that are overlooking underpaid or unsuitable positions. This phenomenon is occurring throughout all cultures and academic levels of society, and is likely due to significant skill-gaps in the employment market. This is largely evidenced with the increase in salaries and wages that companies are providing as a way of enticing applicants, yet to little or no avail.

The problem doesn’t end there. In turn, competitor companies are matching the increase which enables workers to be more selective with their choices in the job-pool. Suddenly, organisations are facing even more competition.

All-in-all, the situation appears to be spiralling, with some employees being forced to hire less qualified and younger workers as well as enforcing streamlining measures. Instead of hiring on a skill-based level, interviews are being offered based on candidate attitude and their personal fit within the company.

This is not without issue, as exiting staff are under pressure to work longer hours and efficiency is greatly compromised. Furthermore, hired workers are not qualified to deal with stakeholders or clients as proficiently as their skilled counterparts.

Employers are now having to address the root cause of the issue which demonstrates an imbalance of skills needed versus skills available; companies are recognising that investments in training are an integral aspect of future success. In fact, a survey by The Business Council of Canada and human resource contractors, Morneau Shepell Ltd., stated that 50% of participants have opted to invest more than $1000 per employee a year on co-op and learning-integrated programs. Mass shortages were highlighted in particular areas including Information Technology and skilled trades with less than 25% of skilled Canadians unprepared to relocate for the position.

Instances like these magnify the requirement for skilled immigrants to overcome the job crunch. While three skilled worker programs attract thousands of applicants per annum, with many successfully securing positions and relocating to Canada, immigration has markedly reduced due to the impact of Covid-19. A report by The Conference of Canada shows that immigration applications were 56% lower in 2020 than in 2019 and temporary workers were down by 33%.

Yet there is hope on the horizon. In light of these impacts, The Conference of Canada has suggested specialist pathways for immigrants that have received a job offer, a greater investment in settlement services to ensure seamless transitions, and accelerating family applications to help immigrants participate in the Canadian labour force. They have also committed to drawing awareness to regions that attract less immigrants, particularly since the impact of Covid-19.

A BDC study issued in 2019 focuses on the measures that companies can take to reduce shortages. With competition high and shortages going nowhere fast, employees are being encouraged to revisit their marketing strategies towards potential employees; replicating a strategy that they might use to attract clients and demonstrate services. The cost is nothing, but results are likely to improve. The way your treat your existing staff, is the way new staff know they too will be treated which is an attractive prospect.

Many workers are now seeking a hybrid approach to working; time can be spent in the office when necessary but divided between home-working as required. Companies that provide this flexibility are far more likely to attract new staff.

Other approaches that prove to be beneficial are human-focused environments where employees consider the wellbeing of their workforce as intently as they would productivity and timekeeping. With time spent nurturing existing staff and providing them with excellent benefits, there is likely to be a reduced turnover of staff and productivity will become an automatic process.

The BDC study also highlighted a vital oversee. Despite the tremendous availability of immigrant workers, many participants within the study stated that recruiting new staff is a strategy that they are least like to utilise in response to labour shortages across all sectors. This is a missed opportunity to gain skilled foreign staff, with many companies perhaps lacking the sufficient knowledge with regard to employee immigration.
There are numerous programs available to organisations that are privy to labour shortages across all regions of Canada.

For more information on these programs, please visit our website –https://mancunianz.net/vgp2/ or book a free consultation with our ICCRC accredited consultants.

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