In a shocking revelation, a recent study by the Canadian Federation of Independent Business (CFIB) has uncovered that small businesses in Ontario suffered a staggering loss of more than $16 billion in revenue in 2022 due to severe labour shortages. This concerning trend places Ontario at the forefront of potential losses, surpassing all other provinces and territories, with Quebec trailing at a distant second with losses totalling around $8 billion.
One might wonder how such shortages persist when there are seemingly long queues for job opportunities and a significant influx of international students eager to contribute to the workforce. According to CFIB spokesperson Julie Kwiecinski, the root cause lies in the scarcity of skilled labour. Industries such as trucking and construction have long grappled with this challenge, and it remains a significant barrier to growth in Ontario.
Kwiecinski emphasizes the distinction between skilled and unskilled labour, pointing out that both types are essential. In particular, she highlights the shortage of skilled labour as a persistent issue in Ontario. The necessity for specialized schooling and training in professions such as trucking and construction adds a layer of complexity to the problem.
The CFIB study reveals the detrimental effects of labour shortages on small businesses in Ontario. Approximately 25% of these businesses faced with labour shortages had to turn down sales or contracts, while 18% postponed existing contracts. Shockingly, 20% were forced to cancel or defer crucial business plans, investments, or expansions.
The report identifies the Canadian construction sector as the most severely affected, losing business opportunities valued at over $9.6 billion in the past year alone. This staggering figure underscores the urgency of addressing the labour shortage crisis to ensure the resilience and growth of key industries.
Kwiecinski acknowledges that there have been marginal improvements, crediting recent efforts by the Ontario government to enhance and broaden skills training. Additionally, there is a move towards mutual recognition of certifications from other Canadian jurisdictions, allowing workers from other provinces to swiftly enter their fields upon moving to Ontario.
Despite these positive steps, Kwiecinski stresses that recovery for small firms cannot be expected to happen rapidly. She urges the federal government to extend the January 18 deadline for small businesses to qualify for a forgivable portion—up to $20,000—of loans issued during the pandemic under the Canada Emergency Business Account program. Only 34% of Ontario small businesses, according to Kwiecinski, can meet the deadline to retain the forgivable portion, emphasizing the pressing need for more time and support.
In the face of the $16 billion revenue loss for Ontario’s small businesses due to labour shortages in 2022, it is imperative for both the public and private sectors to collaborate on effective solutions. The Canadian Federation of Independent Business (CFIB) has made a compelling case for extended financial support, emphasizing the need for urgent action to secure the survival and prosperity of Ontario’s small business landscape.
In this challenging scenario, businesses must explore avenues that provide comprehensive solutions to their staffing needs. Directpath Canada emerges as a beacon of hope, offering global recruitment, immigration, and settlement services. As experts in navigating the complexities of workforce acquisition and immigration processes, Directpath Canada stands ready to assist businesses in overcoming the hurdles posed by labour shortages. By leveraging their expertise, small businesses can not only fill critical skill gaps but also thrive in an increasingly competitive market.
In these trying times, the right partner can make all the difference. Directpath Canada is committed to supporting businesses in their journey towards growth, sustainability, and success. Together, with concerted efforts and strategic collaborations, we can build a resilient and vibrant business ecosystem that withstands the challenges of today and prepares for a prosperous future.
Jon Eric de Belen, RCIC
