Labour shortages are back with a vengeance in BC

More than half of small businesses (55 per cent) cannot get all the staff they need for current operations or to meet new demand, says a new report by the Canadian Federation of Independent Business.

As many as 16 per cent were able to face the challenge, but at a significant additional cost, according to the report called Labour shortages are back with a vengeance.

Industries such as hospitality have seen a mass exodus but virtually all sectors are facing major staffing challenges, says CFIB vice-president of national research Simon Gaudreault.

Nearly two-thirds (63 per cent) of businesses affected by labour shortages said they couldn’t find job applicants with the right skillset or experience, while 52 per cent reported a lack of any candidates at all.

The pandemic has disrupted established relationships between employers and employees and pushed people out of certain sectors, the report notes.

Nearly a quarter (24 per cent) of small businesses report that employees switched industries due to the pandemic, and this was even higher among businesses in social services (37 per cent) and hospitality (48 per cent).

Wage increases have not been the expected silver bullet, the report finds. In fact, 60 per cent of employers who raised wages did not find it helpful in attracting workers.

“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 and author of the report.