Here's news that comes as no great surprise to anyone trying to run a business: there is a desperate shortage of qualified labour in this country. Now, what are we going to do about it?
A study released this week by the Canadian Federation of Independent Business shows that between the beginning of 2004 and the end of last year the vacancy rate for small- and medium-sized enterprises (SME) increased to 3.2 per cent from 2.7 per cent. Also, the number of businesses reporting long-term staff vacancies increased by approximately 16 per cent. CFIB estimates there are 233,000 full- or part-time positions in the SME sector left vacant for at least four months.
While some regions of Canada and sectors of the economy are particularly hard hit, there is no area and no line of work that isn't touched by this shortage. This is not just a question of Alberta enjoying a boom economy right now. There's a long history of people moving to take advantage of better prospects in another part of the country, but these days we're seeing even areas with less robust economies having real trouble finding workers.
CFIB has been following this issue for some years now and, invariably, when a study is released, our phone starts ringing with unemployed people asking how to find one of these thousands of vacant positions. If only there were a magic formula for matching people who need work with people who need workers.
Sadly, that is not the case. Despite the fact that employers are just about begging people to work for them — the Globe and Mail reported recently on a Calgary restaurant that was giving away a Mexican vacation to staff who stayed three months — there are pockets of high unemployment in Canada. And, there are people in areas of high employment who report they just can't seem to connect with a job.
There's no quick fix to the problem, but there are areas that we can explore for solutions. It is no secret that certain groups, such as aboriginal people and recent immigrants, are under-represented in the workplace. Are there ways for business to access these potential pools of labour?
Governments must continually review their policies to reduce regulations and payroll-based taxes that stifle a healthy and growing labour market. Business has its part to play in finding solutions, but governments must also ensure that the necessary social supports are in place so that people who want to work can get a job, but that programs such as Employment Insurance, worker's compensation and welfare do not provide disincentives for people to take available jobs.
It is time, also, to re-examine our immigration system to ensure it is performing well for immigrants looking for work and small businesses looking for workers. In a tight labour market, businesses need to do all they can to ensure they create a welcoming workplace for new Canadians. Governments, though, need to reduce any unnecessary hurdles to our ability to attract and process immigrants for positions at all levels in Canada's growing economy. Rules such as Canada-wide advertising requirements, the short timeframe of temporary work visas, and the prohibition against employing spouses of temporary workers are all in need of review in light of the pressing problem we are facing. Allowing the provinces to play a role in nominating and fast-tracking immigrants to fill labour market needs shows great promise, but much more needs to be done.
The shortage of qualified labour is a long-standing issue that is growing progressively worse. It will not change quickly and there is no one-size-fits-all solution, but we must find creative ways to address the situation. Business cannot grow without workers, which in turn stifles our economy and makes this country less than it could be. We — governments, businesses, workers — need to find ways to reach our full potential.
Catherine Swift is the president of the Canadian Federation of Independent Business. Ms. Swift writes regularly for globeandmail.com on small business
For more information, please visit www.cfib.ca
