A new report is casting doubt on the idea that Canada is facing a widespread labour shortage and bolsters the arguments by some labour economists that high job vacancies aren91裸聊视频檛 due to a shortage of workers.
The Statistics Canada analysis finds there are no labour shortages for jobs that require high levels of education, suggesting other factors, such as a mismatch in skills and pay, might be to blame for a high number of empty positions.
In the aftermath of the COVID-19 pandemic, labour shortages have grasped headlines from coast to coast as businesses have advertised more job openings than ever. Job vacancies skyrocketed to more than one million at one point last year.
The perceived countrywide labour shortage has put pressure on governments to help businesses find workers, including by increasing Canada91裸聊视频檚 immigration targets.
But the report published this week compares unemployment and job vacancies by education level and paints a more nuanced picture of the labour market.
91裸聊视频淭hings look really different depending on whether you look at vacancies that require a high level of education, versus those that require a high school diploma or less,91裸聊视频� said Ren茅 Morissette, the assistant director of social analysis and modelling division at the federal agency.
The report, which looked at labour data between 2016 and 2022, found for jobs requiring a bachelor91裸聊视频檚 degree or higher education, there were always fewer jobs available than people to fill them.
For example, there were 113,000 vacant positions requiring a bachelor91裸聊视频檚 degree or higher education in the fourth quarter of 2022, but 227,000 individuals who held such an education were unemployed during the same period.
But for positions that required a high school diploma or less, the shortage of workers only started in the third quarter of 2021.
Morissette said the findings don91裸聊视频檛 mean that there are no labour shortages in some markets, but shortages may not be as extensive as previously assumed.
91裸聊视频淚t91裸聊视频檚 certainly conceivable that there are local shortages in some in some positions,91裸聊视频� Morissette said. 91裸聊视频淲hat we91裸聊视频檙e saying is that the shortages may not be as widespread as initially assumed in the early discussions about the high vacancy rates in Canada.91裸聊视频�
For employers trying to fill vacancies that require a post-secondary education, the report says their hiring challenges cannot be attributed to a lack of workers available with those qualifications.
Instead, the difficulties may be the result of a mismatch in skills required for the job and those possessed by candidates. Another factor could be that employers aren91裸聊视频檛 offering wages that are on par with what job seekers expect.
The report also casts doubt on the hiring challenges facing firms trying to recruit workers with lower levels of education.
91裸聊视频淭he degree to which these job vacancies can be attributed to labour shortages in specific low-skilled occupations instead of relatively low-wage offers and fringe benefits or other factors remains an open question,91裸聊视频� the report says.
Jim Stanford, an economist and the director of the Centre for Future Work, says the report from Statistics Canada busts 91裸聊视频渓ong-standing myths91裸聊视频� about labour shortages in the country.
91裸聊视频淚f you were really short of labour, and you couldn91裸聊视频檛 find someone to do that minimum wage job at a McDonald91裸聊视频檚 restaurant, then why aren91裸聊视频檛 they either increasing the wage or trying to replace the work with machinery?91裸聊视频� Stanford said.
91裸聊视频淣either are happening, which suggests to me that employers in general are quite happy with the current state of affairs, no matter how much they complain about labour being in short supply.91裸聊视频�
So what explains the high number of job vacancies?
Morissette said for low-skilled industries, businesses may be choosing to keep wages low and accept higher vacancy rates.
91裸聊视频淔or employers that have negligible training costs, a human resource strategy that combines relatively low wages with high worker turnover and some vacancies might actually 91裸聊视频� maximize profits,91裸聊视频� he said.
The federal government has kept an open ear to business groups raising alarm bells about labour shortages.
In the fall, Ottawa announced new immigration targets that would see the country welcome 500,000 immigrants annually by 2025. Immigration Minister Sean Fraser has touted the new plan as a solution to the country91裸聊视频檚 labour woes.
Canada has also experienced a surge in the number of temporary foreign workers brought into the country to help businesses fill vacant positions.
The apparent shortage of low-skilled workers could push policymakers to think that even more temporary workers are needed, but Stanford said that would be a 91裸聊视频渄isastrous91裸聊视频� conclusion to draw from the report.
Many economists have reservations about temporary foreign worker programs that they worry can suppress wages domestically, if used excessively.
91裸聊视频淭he goal of immigration policy should not be to solve the recruitment problems faced by low-wage employers, or any employers for that matter,91裸聊视频� he said.
Nojoud Al Mallees, The Canadian Press
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