Skilled Workers in Canada

Skilled Workers in Canada: Why Is There a Labor Shortage?

The lack of skilled workers in Canada is not a new phenomenon.

However, as the labor market gains momentum, the need for qualified workers is higher than ever.

According to Statistics Canada, the national statistical agency, almost 60% of small and midsize businesses expect to face challenges when recruiting skilled workers.

So where does Canada’s labor shortage stem from?

In this post, we’ll explore the reasons behind this shortage. Plus, a few tips on how to address it.

 

Why Does Canada Lack Skilled Workers?

 

As an employer facing labor shortages, your primary focus may be on addressing the issue rather than understanding the underlying factors.

However, by understanding these factors, it becomes easier to tackle future challenges and find lasting solutions.

Here are the primary drivers of the skilled labor shortage in Canada:

 

Aging Population

 

As per data from Statistics Canada, almost 8,500 thousand workers make up the age group of 45 and above. With more people from this age group retiring, there is a notable decline in the working population. This results in a shortage of skilled professionals.

 

Economic Growth

 

Canada’s flourishing economy is another contributing factor. The rapid pace of economic growth has created a gap between the supply of skilled workers and the numerous job opportunities available.

 

Declining Birth Rates

 

2017 to 2021 data reveals a pattern of decreasing birth rates. Specifically, the fertility rate has declined from 1.55 in 2017 to 1.43 in 2021. As a result, the country is witnessing a decrease in the number of young individuals joining the labor market.

 

Shift to Remote Work

 

The pandemic didn’t just change how we work; it also influenced where we want to work. In Canada, remote work allowed people to move to areas with fewer job shortages, causing imbalances in labor demand.

The sectors most affected by the labor shortage are the healthcare, manufacturing, construction, and food service industries.

 

Addressing the Challenge

 

Canada recognizes the urgency of addressing the shortage of skilled workers to sustain its economy.

That’s why it has implemented immigration programs to attract qualified workers.

Initiatives like the Express Entry system and Provincial Nominee Programs seek to fill labor gaps.

Additionally, temporary foreign worker programs are used to fill immediate labor gaps. This applies especially in sectors like agriculture and hospitality.

If you’re interested in learning how to hire foreign nationals in Canada, make sure to check out our comprehensive guide. It offers straightforward, step-by-step instructions on how to bring international talent on board.

And when you’re ready to take the leap, give VideoWorkers a try. All you need to do is create your free company account. Then, you can start exploring the largest database of skilled and unskilled workers who are eager to contribute to your company’s success.

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