More than half of employers struggling to find workers

October 4, 2021

More than half (55 per cent) of Canadian small and medium-sized employers are struggling to hire the workers they need, according to a report from the Business Development Bank of Canada (BDC).

And many (64 per cent) say the labour shortage limits their business’ growth.

“As the economy recovers, this scarcity of workers is reaching worrying heights, putting economic growth at risk and compromising the competitiveness of Canadian businesses,” says Pierre Cléroux, vice president for research and chief economist at BDC. “Fortunately, while [the] labour shortage is here to stay, entrepreneurs can take key actions to limit the impact of this situation on their growth.”

More than four in five (84 per cent of) Canadian companies expect to have hiring difficulties over the next year, according to a separate report.

Because of the labour scarcity, 44 per cent of enterprises have delayed or are unable to deliver orders to clients. This is the case even though 61 per cent of entrepreneurs have been forced to increase their hours or employees’ hours and 49 per cent have had to increase wages and benefits to try and address the problem.

The labour shortage has also caused 32 per cent of businesses to become less competitive, with another 24 per cent saying their goods or services have deteriorated.

And 26 per cent are having difficulty retaining workers, finds BDC.

Source: HR Reporter