Wednesday, October 20, 2021

Hiring difficulties hinder growth of Canadian businesses: Study

Employers are finding it difficult to hire workers, pushing them to work longer hours, and rejecting new orders, which are affecting most businesses in Canada, a new study says. a hindrance to development.

Published by the Business Development Bank of Canada (BDC), the study (PDF) found that 55 percent of small and medium-sized businesses in Canada are struggling to hire the workers they need, 64 percent of entrepreneurs reported. have done that the labor shortage limited their growth.

Forty percent of entrepreneurs delayed or failed to deliver orders to their customers.

Labor shortages prompted 61 percent of business owners to increase their or their employees’ working hours, while 49 percent had to provide higher wages and benefits.

“As the economy recovers, this labor shortage is reaching worrying heights, putting economic growth at risk and compromising the competitiveness of Canadian businesses,” said Pierre, vice president research and chief economist at BDC. Clorox said in a news release.

“Fortunately, while the labor shortage is here to stay, entrepreneurs can take important steps to limit the impact of this situation on their growth,” he said.

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According to the latest statistics from Statistics Canada on job vacancy rates, labor shortages are spread across various sectors of the country, along with the hospitality industry and food services.

The BDC suggests three solutions to tackle the labor shortage, including adopting new technologies and automation, using a formal recruitment process, and offering a total compensation package.

BDCs say the demand for higher wages (57 per cent) is the main reason workers will switch jobs next year, followed by demanding higher benefits (32 per cent).

The study also found that the pandemic has led to migration to one sector within the labor market, with about 20 percent of workers losing their jobs and moving to a different area of ​​employment.

The BDC study includes a survey of more than 1,200 Canadian entrepreneurs and another survey of 3,000 workers on the impact of labor shortages on their jobs.

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Andrew is a reporter based in Toronto.

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This News Originally From – The Epoch Times

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