This article is part one of the Grizzly Force Labour Squeeze Series. Here we talk about ways to make lemonade out of Canada’s growing labour shortage issues.

If you’ve been in business in Canada in the last decade, you’ve probably heard the dreaded term “labour shortage” or worse, you’ve likely experienced this supply shortage in the market firsthand. 

Since 2000 Canada’s labour force has been on a slow march downwards. These numbers are in part, due to baby boomers heading for retirement, and - you guessed it, fewer babies being born. Despite having a lot of unexpected time on our hands, Canadian birth rates during the pandemic actually fell to their lowest since 2006 (3.6% less than the previous year). The full effects of our declining births won’t be seen for decades to come. If there’s one thing we know, it’s that labour shortages in Canada are here to stay. 

So why should you care? 

An analysis performed in 2021 by RBC that same year, predicted that by 2024, 

• 23% of the working-age population is expected to be 65 and older
• It’s going to be an employee’s market. Employers are going to have to increase wages and provide more benefits and flexibility to attract and retain employees. 
• Labour shortages are going to affect every industry. 

We’re already feeling the effects of this, as labour shortages were further exasperated by a seemingly endless pandemic period. BDC’s study performed the same year interviewed 1251 Canadian entrepreneurs and found that a whopping 64% reported labour shortages that have limited the growth of their company. The top reason for the difficulty in filling roles was a lack of candidates. In a similar study performed in 2018, 40% of Canadian entrepreneurs were already having the same problems.  

If you’re an employee, manager, or business owner - changing trends are going to impact you in some shape or form.  The best response: a proactive strategy that begins now.  For individuals, this means taking advantage of the labour squeeze by assessing your skills and upgrading where necessary. For businesses, it means understanding labour shortage trends and how they will affect your business. Adopting organization-wide solutions now can help you turn the squeeze to your advantage.  

The Solution?  

A resounding consensus between analysts from both BDC and RBC has identified three pathways forward to solving Canada’s labour issues. 

• Immigration
• Technology Implementation
• Adopting employee retention plans

In our next few blogs, we’ll cover these solutions in-depth and give you insight into how you can shape your business's response to the labour squeeze.  
Subscribe to our email list to be the first to know about our next blog in the series: Immigration - Canada’s way forward is global. We’ll be reporting on upcoming federal immigration policies and how they affect you and providing resources to local organizations bridging the gap between you and new skilled labour.  

If you'd like to discuss ways that Grizzly Force can help you with your labour shortages, we're always happy to assist.