Jul 13, 2022
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Labor Shortages and The Staffing Struggle in Canad
8 July 2022 - Businesses across Canada are experiencing staffing issues and labor shortages. Labor-related concerns are reported at a record high rate from business owners in Canada. In a report published by the Bank of Canada as a result of the second quarter of 2022, the surveyors found, that “the number of businesses reporting labor-related constraints and supply chain bottlenecks remains at a record high, suggesting that supply is not keeping up with demand. About half of firms with
supply chain challenges expect them to persist until the end of 2023 or beyond.” Moreover, the Bank of Canada highlights the correlation between the recent supply chain challenges and labor shortages, suggesting that labor shortages are existing due to supply chain constraints.
Not just one industry
Canada’s Chief Economist, Pedro Antunes, suggests that staffing struggles are not confined to one industry, “I don’t think there’s an industry out there that is not constrained by the lack of workers.” Proposing that staffing struggles can be seen within different organizations and furthermore, at different levels within various companies.
Additionally, in the pair of reports produced by the Bank of Canada, the surveyed consumer expectations lead to the suggestion that consumers' worries have risen with the rising inflation, affecting how consumers view prices for food, gas and rent. The authors of the report highlighted that “many firms continue to report plans for raising wages to attract and retain workers”, Canadian businesses are expecting to increase wages and raise prices at a faster rate.
In order to help attract workers, and help with the rising inflation, the Bank of Canada adds that businesses are going to be expected to raise wages by 5.8 percent on average over the extent of the following year. Currently, the Ontario Living Wage Network calculates a “living wage” as $18.60 an hour in Ottawa.
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