Canadian Federation of Independent Business proposes further developing TFWP and computerization to address work lack issue..
The pandemic is causing long-standing labour shortages in Canada. There is no easy solution.
It is reported that the Canadian Federation of Independent Business (CFIB) states that nearly half of the smaller Canadian companies are impacted by labour shortages. The businesses could have been understaffed because of problems in hiring and retaining employees to work the hours required.
Additionally, 16% of businesses claim to have enough employees. However, they are at an extra cost because of pay increases, flexible hours, or bonuses for hiring and prizes, among other things.
In the wake of these shortages of labour, nearly one-third of small businesses in June said they had abandoned or delayed projects, as well as declining sales contracts and contracts.
CFIB states that the solution isn’t as straightforward as raising wages because more wages mean more labour costs, which increases prices and causes inflationary pressure. But, business owners say that investing in automation as well as the use of the Temporary Foreign Workers Program (TFWP) seem to be the most promising options.
In a sector-specific breakdown, the temporary foreign workers frequently had high success rates in agriculture and professional services. They also had a lot of success in addressing the shortage of labour in the retail and manufacturing industries as well as financial institutions and administration.
Despite their performance and high success rate, only 16% of the businesses surveyed said they used temporary foreign employees to fill vacant jobs. The limitations in the TFWP can be costly and time-consuming for the majority of small firms. Some were “unworkable” as certain occupations don’t qualify.
The CFIB states that the solution to labour shortages is a series of actions over a prolonged duration. But making investments in technology and improving TFWP may be achieved in the short term.
The population of working age in Canada has been decreasing since the 1990s, and projections for the future predict this trend to remain. In 2050, Canada could lose an enormous portion of its working-age population if there aren’t any changes.
To help businesses deal with the challenges of a changing demographic in Canada to meet the challenges of a changing demographic, the CFIB suggests improving the TFWP to allow more workers into Canada more quickly and ensure a proper fit between the new immigrants the positions they take on. A more efficient TFWP would allow for a more comprehensive degree of expertise and different sectors and provide more avenues to become permanent residents.
