There is an intense labour shortage in Canada right now. Find out why this is happening.
Many employers are having difficulty hiring talent right now. Many workplaces, companies, and by turn, individuals had to be agile over the past year and a half due to COVID-19. Hiring and working conditions are in a redefining moment.
Restrictions are (mostly) lifted across Canada, causing more jobs to be available; however, there are fewer applicants than ever. There are 50% more job postings from June 2020 to June 2021, with 30% fewer people considering a new job. This combination has caused a vast labour gap in the market. Some reasons for this are highlighted below.
1. Company Growth
COVID-19 has forced companies to be more agile, fluid, and tolerant of changes. While many companies suffered during COVID-19, the ones that were able to survive are now looking to grow as restrictions lift. Common industries that were able to survive (and are now looking to thrive) are in the following sectors:
- Home Delivery
- Vehicle Sales
In fact, due to the significant labour gaps, companies are starting to be more competitive in their recruitment efforts. This is leading to better benefits, higher wages, and generally better offers for candidates.
2. Agile Individuals
Many people were laid off during the pandemic and had to find new ways to make money without leaving their houses. The discovery of new revenue streams from the comfort of home is too appealing to leave for many individuals. This has become a new way of life for people, causing a lack of desire to return to the traditional workplace. Whether through ingenuity, learning a new skill, or relying on government money/programs, many are no longer looking for a conventional 9-5 job.
Another facet of this is people relocating. Many individuals moved away from where they were previously working. Remote options allowed people to move closer to family or to smaller and less costly communities.
3. New Childcare Needs
With schools being closed across the country, many parents had to leave their positions to take care of their children. This is likely to shift in the coming months, as schools are largely being opened across the country circa September 7th, 2021. With the Delta Variant looming, many are hesitant to rejoin the workforce as it is uncertain whether schools will stay open.
4. Low Levels of Immigration in 2020
Immigration was nearly halted in 2020, as countries were looking to ‘protect’ their citizens from outside variants or any spreading of COVID-19. Canada typically welcomes north of 360,000 immigrants per year. In 2020, this number fell drastically to just under 200,000 individuals. Additionally, many middle-aged workers decided to retire early, taking their skills and experience out of the job market. This caused companies to be starved for international talent, missing out on the skills and volume of foreign workers that are historically used to fill Canada’s labour gaps. This has caused the gaps to widen significantly and be felt across the country.
For these reasons, the hiring landscape has changed. There is a job boom in a climate where workers are not yet re-engaged with the workforce. This has created a massive demand for workers. Many people are pushing away from working with government subsidies, work from home desires, health and safety concerns, and family complications factors. This affects nearly every industry, specifically physical workplaces such as manufacturing facilities, plants, warehouses, offices, and restaurants.
Hiring a great candidate is wonderful, but even hiring anyone is hard right now, let alone qualified candidates. The new landscape of the workforce has caused significant barriers to finding, attracting, and hiring candidates. Immigrate can grant you access to the best the world has to offer. We can find you talent from all over the world. Our expert recruiters will find you qualified candidates, and our expert immigration consultants can bring the candidates to you. Book a free consultation with our experts today to see how we can help you fill all your labour needs.