The Canadian Federation of Independent Business (CFIB) says that, Canadian businesses are losing out on up to $38 billion in contracts and sales because of labour shortages plaguing the country.
According to the latest report, in Canada small businesses 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 informs the situation could get even worse in the future.
Challenging demographics and a failure to actually increase to the moment from governments also mean the present situation could decline further in the future, notes the CFIB in that report.
In Canada, employers can hire foreign citizens who can gain their permanent residency in the country through Express Entry system’s three federal immigration programs, the Federal Skilled Worker Program (FSW), Federal Skilled Trades Program (FST), and Canada Experience Class Program (CEC), or a participating provincial immigration program.
Through a network of Provincial Nominee Programs (PNP), most of the Canada’s 10 provinces and three territories can suggest skilled worker applicants for admission to Canada when they have the specific skills needed by local economies.
Successful applicants who receive a provincial or territorial nomination can then apply for Canadian permanent residence through federal immigration authorities.
Canadian employers can also employee and hire foreign citizens through the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP).
The Global Talent Stream (GTS), a part of the TFWP, under normal processing situations can lead to the granting of Canadian work permits and processing of visa applications within two weeks.
In spite of record-breaking immigration to Canada, though, many employers are still having a hard time to find workers, one of the reasons Immigration, Refugees and Citizenship Canada (IRCC) has recently increased the immigration targets for the coming years.
According to the recent released 2024-2026 Immigration Levels Plan, in 2024 Canada is planning to welcome 485,000 new permanent residents and in 2025 500,000 new permanent residents and then hold the line on immigration in 2026 with another 500,000 new permanent residents.
The Forum of Ministers Responsible for Immigration (FMRI) is bullish on increasing immigration to resolve labour challenges throughout the country.
FMRI provincial-territorial co-chair Jeremy Harrison said that, Immigration is critical to addressing labour shortages, attracting new investment and supporting Canada’s economic growth.
Territories and provinces play an important role to make sure that immigration is responsive to employers’ labour needs and benefits of all regions of the country. Many provinces and territories are also taking steps to improve foreign qualification recognition to make sure that 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 which 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, to compensate labour shortages, business owners are working long hours, which is about 59 hours a week per business.
Robertson also says that, there is no doubt based on our data and the lived experiences of our members over the last two years, inflation and labour challenges have been at the forefront of most business owners’ realities.
