Labour Shortage Back On The Table
It may seem counterintuitive to write about skills and labour shortages during a period of economic uncertainty, but bear with me. Canadians, particularly those looking for work, may be surprised to learn many small businesses have continued to struggle to find qualified staff right through the recession. In the first quarter of 2010, 40% of small firms told CFIB they struggle to find the people they need to put their products and services to market. It wasn't that long ago that the skills and labour shortage was at the top of the list of business worries. In 2008, Alberta's small business sector was more concerned about labour shortages than any other issue, including the ever-present total tax burden. And that concern was high right across the country, including in the Atlantic provinces. On visits to St. John's, Nfld., Fredericton, N.B., or Amherst, N.S., many CFIB members would tell me about their struggles to find and retain staff.
Nearly all of the net job losses in the recession occurred in big business. Across Canada, large firms shed a total of about 10% of the workforce. At small firms, while there was no net new hiring on the whole, total employment remained virtually the same throughout the downturn. Politicians should pay close attention to this as they examine ways to add stability and strength to the labour market. In particular, CFIB hopes the federal government reconsiders the planned 2011 start to years of Employment Insurance increases. Employees too should consider job stability. While leaving a small employer for a few bucks more may seem tempting in a great economy, their prospects for keeping a job when the economy softens are not as good.
As CFIB's Business Barometer shows a slow but steady increase in optimism, we expect skills and labour shortages to roar back as a public policy issue. During the recession, CFIB worked hard to remind politicians at all levels that Canadians can't afford to take their eyes off the giant demographic ball while focusing on rising unemployment. There are signs governments are getting the message.
CFIB is pleased expanded Employment Insurance benefits are temporary rather than long-term measures that would make it easier to get on or stay on EI. Another positive move is that government has resisted the temptation to scale back immigration programs. While there are many measures needed to expand Canada's labour force, immigration and the temporary foreign worker program contribute a lot. In the past few years, Citizenship and Immigration, and Human Resources and Skills Development steadily improved portions of the temporary foreign worker program to reduce unnecessary hurdles, paperwork and processing times. Unfortunately, some confusing new regulations CFIB feels would make the program less useful for smaller businesses are underway. These would limit the time a temporary foreign worker could stay in Canada. While it is understandable this program ensures workers are temporary, Canada should make every effort to reap the full benefit of qualified workers who have spent time in the country gaining Canadian work experience and education.
One of the government's best moves in recent months was to introduce a Canadian Experience Class that allows those who have studied or worked in Canada to apply for permanent residency. Unfortunately, the program only takes applications from highly skilled temporary workers. Those in trades and in medium skilled or entry level positions are not given the same opportunity at the federal level. This is a shame as it is these jobs that often remain empty for long periods.
A major immigration study by CFIB showed a complete mismatch of the kinds of skills small companies need most and the skill set the permanent immigration system scores highest. Restaurants, small manufacturers, hotels and resorts -- particularly those in rural areas -- need workers, something the immigration system needs to consider, especially when there are many people around the world who would love to come to Canada for such opportunities. The temporary foreign worker program has received much criticism, particularly by unions, who say it is being used to flood the market with low-wage earners or take advantage of vulnerable workers unaware of Canadian rules. The notion that a business is going to go to the expense and risk of bringing a worker from overseas if a qualified Canadian worker is available is hogwash. While we need to ensure support is available to all workers -- temporary or otherwise -- the program is extremely important to businesses.
Canada needs a secure and responsive temporary foreign worker program, but it also needs to ensure workers of all skill levels have a shot at staying in Canada. Small businesses are counting on governments to continue to ensure they have a well-functioning immigration and temporary foreign worker program while continuing to explore ways to increase Canada's labour force.
Dan Kelly, Financial Post Published: Tuesday, April 06, 2010
Dan Kelly is senior vice-president of legislative affairs for the Canadian Federation of Independent Business (CFIB), which represents the interests of small-and medium-sized business and lobbies on behalf of its 105,000 members at the federal, provincial and municipal levels.
