Ottawa is looking to expand worker pools, harmonize interprovincial trade rules and fast-track nationally significant projects into operation.
That means having a more readily available and mobile workforce on hand to realize Prime Minister Mark Carney’s “One Canadian Economy” bill, known as C-5, which would establish the “Free Trade and Labour Mobility in Canada Act” and the “Building Canada Act.”
The Canadian Federation of Independent Business (CFIB) is weighing on this topic with a new analysis showing that small businesses across Canada are struggling to find workers with the right skills, expectations and qualifications.
And that’s mainly due to labour mobility barriers creating by governments that’s preventing companies from filling roles with qualified workers wherever they may be found in Canada.
CFIB said small businesses are facing, not only a shortage of applicants for jobs, but candidates with skill mismatches, poor productivity, motivation issues and weak problem-solving skills. They want to be able to draw from a wider labour market.
In a June 10 news release, CFIB said these provincial barriers are a drag on productivity, slow regional development, and undermine Canada’s economic competitiveness.
It’s why CFIB is calling on governments to remove those labour mobility barriers and improve the quality of Canada’s overall workforce.
“Over four in ten small firms say a shortage of skilled labour is limiting their ability to increase sales or production. Many are struggling not just to find workers, but to find candidates with the right skills, expectations, and qualifications,” said Marvin Cruz, CFIB’s director of research, in a June 10 news release.
In their analysis, the primary obstacle identified by two-third (69 per cent) of small and medium-sized businesses is a shortage of qualified candidates in their respective sectors.
More than half (54 per cent) of small businesses had trouble attracting qualified candidates at all, while 47 per cent struggled with a mismatch between the skills applicants bring and the actual job requirements.
CFIB said provincial licensing and certification barriers often prevent employers from filling essential roles quickly, especially in rural areas where candidates are scarce.
The report said 57 per cent of small businesses reported a disconnect between what candidates expect in terms of pay or benefits and what the business is offering. Small employers say they can’t match the compensation package offered by large companies.
CFIB is recommended that government should:
- Introduce tax credits and grants for SMEs that invest in employee training and upskilling.
- Provide wage subsidies or EI premium holidays for SMEs hiring and training new or inexperienced workers.
- Encourage partnerships between small businesses and educational institutions to create apprenticeship and internship programs that can help bridge the skills gap.
On labour mobility, CFIB recommends governments:
- Mutually recognize one another’s regulatory requirements.
- Allow licensed professionals to work within the scope of their existing training and experience while undergoing registration processes in a new province or territory.
- Work with professional colleges and associations to lower or waive interprovincial registration fees.
- Streamline the registration process by legislating a clear timeline for professional certification approvals. Should approval timelines not be respected, implement compensation for businesses such as waiving registration fees.
