Canadian businesses are losing out on up to $38 billion in contracts and sales because of labour shortages plaguing the country, claims the Canadian Federation of Independent Business (CFIB).
In its latest report, Small Businesses in Canada Hit Hard: The Big Financial Toll of Labour Shortages, the 97,000-strong organization representing small and medium-sized businesses in Canada claims a lack of workers is hitting business hard – and warns the situation could get even worse in the future.
“Challenging demographics and a failure to truly rise to the moment from governments also mean the current situation could deteriorate further in the future,” notes the CFIB in that report.
Through a network of Provincial Nominee Programs (PNP), almost all of Canada’s 10 provinces and three territories can nominate skilled worker candidates for admission to Canada when they have the specific skills required by local economies.
Successful candidates who receive a provincial or territorial nomination can then apply for Canadian permanent residence through federal immigration authorities.
The Global Talent Stream (GTS), a part of the TFWP, can under normal processing situations lead to the granting of Canadian work permits and the processing of visa applications within two weeks.
Despite record-breaking immigration to Canada, though, many employers are still struggling to find workers, one of the reasons Immigration, Refugees and Citizenship Canada (IRCC) has recently upped the immigration targets for the coming years.
Under its newly-released 2024-2026 Immigration Levels Plan, Canada is planning to welcome 485,000 new permanent residents in 2024, 500,000 in 2025 and then hold the line on immigration in 2026 with another 500,000 new permanent residents.
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That’s a total of 1.485 million immigrants to Canada over those three years.
The Forum of Ministers Responsible for Immigration (FMRI) is bullish on boosting immigration to resolve labour challenges throughout the country.
“Immigration is critical to addressing labour shortages, attracting new investment, and supporting Canada’s economic growth,” said FMRI provincial-territorial co-chair Jeremy Harrison, the minister of immigration and career training, in November.
Without Enough Staff, Employers Are Forced To Work Longer Hours Themselves
“Provinces and territories play a key role in ensuring that immigration is responsive to employers’ labour needs and benefits all regions of the country. Several provinces and territories are also taking steps to improve foreign qualification recognition to ensure newcomers can work in occupations aligned with their skills and experience.”
The money lost in potential sales and contracts due to labour shortages is something the CFIB considers to be “ a significant amount that could have been a major boon for small businesses, helping them address staffing issues through investments in automation or the still challenging post-COVID recovery on Main Street.”
In a presentation before a standing committee of the Nova Scotia government, CFIB senior policy analyst Duncan Robertson said business owners are working long hours to compensate for labour shortages that amount to 59 hours a week per business.
“There is no doubt based on our data and the lived experiences of our members that over the last two years, inflation and labour challenges have been at the forefront of most business owners’ realities,” Robertson said.
