'Help wanted' going unanswered due to labour shortage: CFIB

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Help is desperately wanted.

Small business is running short of workers and is having big trouble finding employees, according to a new report by the Canadian Federation of Independent Business (CFIB)

“Small businesses were already experiencing a very significant shortage of labour at the beginning of 2020, and the pandemic has made the situation only more complex,” said CFIB vice-president of national research Simon Gaudreault.

More than half of small businesses now say they can’t get all the staff they need for current operations or to meet new demand.

Another 16% say they are able to face the challenge but at a significant additional cost.

“Industries that were locked down for long periods of time, like hospitality, have seen a mass exodus as workers upskilled or switched to other jobs, and virtually all sectors are facing major demographic upheavals with not enough new workers coming in to replace those who are retiring,” Gaudreault added.

“Small businesses have a long and steep climb to recovery, and having the right workers in place or other tools to address labour shortages is a big part of that,” concluded Corinne Pohlmann, Senior Vice-President of National Affairs at CFIB.

The CFIB — along with seven other recommendations — wants the government to make it easier for temporary foreign workers to get hired.

“They are already doing all they can to attract workers, but they need governments to do their part by adopting policies that increase productivity, connect job seekers with employers and don’t put the cost of hiring out of reach,” the CFIB said.

Offering higher pay does not seem to be making a difference.

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More than 80% of small businesses affected by labour shortages have raised wages to attract more candidates.

But many report they are still not enticing qualified candidates or any candidates at all.

On average, small businesses with labour shortages expect to increase wages by 3.7 per cent over the next 12 months, above the national average of 3.1 per cent.

“Business owners are in a tough position and have to balance the expectations of job seekers with their own ability to remain competitive,” added Laure-Anna Bomal, Research Analyst at CFIB.

“We’re seeing a lot of creative and flexible solutions emerge as a result, but more needs to be done to support them as they face this incredible long-term challenge.”