Canada faces Labor Shortage 400,000 Jobs Vacant
4% jobs in British Columbia have remained unfilled, and there are signs of an increased labor shortage in Canada. Data shown by the Canadian Federation of Independent Business reveals that there are not enough workers for all jobs in the country.
As per the CFIB Help Wanted Survey, 399,000 jobs vacancies existed at the end of the fourth quarter. There was an increase of 38,000 vacancies, in three months which corresponds to nearly 10.5 percent. In British Columbia, 3.9 percent of all jobs were vacant. This shows an increase from 3.6 percent seen three months ago. Quebec had a vacancy rate of 3.4 percent showing an increase from 3.1 percent.
The labor shortage is visible at a time when there is a strong job market in Canada. The unemployment rate is 5.8 percent in February, which is low in the nation since 1976. This reflects that the economy of the country is doing extremely well.
1.Skilled labor shortage
At present, there are more than 1.1 million unemployed people in Canada. It is structural in nature and some people are between jobs but it also reflects the fact that there is a continuous mismatch between the available workforce and the jobs which are presently being created in the country.
Ted Mallett, Vice President, and Chief Economist, CFIB, states that there is a need for retraining the workers who serve in the industries which are in transition to reduce the problem and shifting them from industries on the decline to industries which are growing.
2. Effect on a small business sector
The present shortage of labor is worrying for the small business sector. It affects the ability to offer best products and services. On the reverse, this development is good for employees because the shortage of workers guarantees high wages in the future. The enterprises which experience the shortage of labor plan to raise the payments made to employees by a large margin. They plan to give an increase of wage of 2.8 percent in the next year, compared to 2.3 percent for business, which is not facing any labor shortage.
3.High Demand for personal service & construction sector
The CFIB report has given a break up of job vacancies by occupational categories. It has made an observation that workers belonging to personal service and construction sectors experience great demand, and have a vacancy rate of 4.5 percent and 3.7 percent, respectively.
4.Canadians not willing for mobility
Mallett has also stated that greater mobility of labor can solve the issue of a labor shortage. When there are regions where the performance is better compared to others, it will be helpful if resources are pulled from the areas which are not doing well.
Presently, the data from Statistics Canada reveals that Canadians are not interested, like before, when they were a mobile labor force. There is a huge decline in the Interprovincial migration since 1970. The people attach priority to their families and social circles and are less interested to move for jobs.
Policymakers can help to challenge this problem by making it convenient to move. They can align certification and standards in all the provinces making it convenient for the Licensed Professionals to obtain accreditation in other provinces also.