In their article titled ‘Looking for Hire Ground’, Amber Ruddy, Mandy D’Autremont, Jamine Carmichael and Richard Truscott have analysed the adversities and impacts of labour shortage on small and medium industries, particularly after the recession of 2009. They have also examined how these enterprises are trying to cope with the situation.
In addition, they have made a critical analysis of the measures initiated by the government to reduce the severity of the situation. The authors’ conclusions are made on the basis of an all-inclusive survey conducted in Western Canada in which several CFIB members responded to the issues raised in the research. It became apparent from the outcomes of the research that the entire region suffers from a severe shortage of labour, which will continue to impose heavy challenges on the capabilities of these industries to run successfully.
The authors have collected authentic data that reveal a meaningful picture about the seriousness of the situation. They have correctly stated that 79 percent of SME firms in Western Canada are facing difficulties for the last three years and that almost half of these expect the situation to worsen in the coming three years. The problems appears to be awesome because the maximum demand by these industries pertains to the need to hire more sales and construction personnel, but there are very few available with the requisite skills.
Given the bleak prospects for improvement of this situation in the future, business owners have taken the right action in taking stronger initiatives by way of offering higher wages and incentives such as flexible working hours, provision of leased vehicles and offerings relative to personalised and exclusive retention bonuses.
However, although it is true that labour shortages increased significantly after the 2009 recession, the period immediately preceding the recession had also witnessed labour shortages, particularly in Western Canada. The recession had somewhat diluted the pressure in some industries but the authors’ contention is supported by the fact that Canada currently faces a situation in which a higher percentage of the population is aging and will soon retire, thus creating further shortage of skilled and semi-skilled labour.
The authors have correctly concluded that labour shortages in Western Canada have led to higher opportunity costs for the country. This is corroborated by the fact that 51 percent of the respondents had not opted to exploit new business opportunities in view of non-availability of required staff. It is also true that although the government has started taking some initiatives by making policy changes in regard to issues applicable to small and medium industries, a lot more needs to be done in order to overcome the hurdles that were created because of the recessionary pressures of 2009.
However, in contrast to what the authors have asserted, shortage of labour in Western Canada will be less serious in occupations that do not require highly qualified people. But it is true that even low-skilled workers are not available to fill up vacancies and this situation will create further complexities as the Canadian economy begins to pick up after the recession get over. In addition, it is also apparent that although the government is making efforts through policy changes and introduction of programs to make labour more skilled and competent, a wider perspective needs to be adopted in overcoming the problem of shortage of labour.
Although the authors have made an exhaustive analysis of the issue of labour shortage in Western Canada, they have missed out in making pertinent suggestions relative to making the required information about labour needs available to educational institutions. This would have allowed the introduction of appropriate educational curriculums in creating skilled and qualified personnel in the coming future.
The problem may continue for some time but with the addition of more skilled and qualified people in the labour force, it will gradually get diluted. This will allow youth to have the flexibility to choose the professions of their choice, which will give them greater job satisfaction and hence result in greater productivity.
Given the large numbers of jobs that cannot be filled because of skills shortage, youth will have greater choice to choose jobs that are in greater demand. Another contribution the authors could have made in resolving the issue was highlighting the need to tap the massive potential that lies amongst the recent migrants and aboriginal people in Western Canada. The government ought to introduce programs to assist these people in acquiring higher skills and qualifications in order to make them eligible to fill up the increasing vacancies in SME industries in Western Canada.
I would certainly recommend the report to be read by small business owners because it provides exhaustive material on the problems faced by these industries. The report will allow these business owners to become prepared to face the impending challenges as also to find solutions in keeping with the limited resources they have access to in terms of human resources. In conclusion, it can be stated that the strongest argument put forth by the authors is that the government alone cannot resolve the given issues because there are other stakeholders such as trade unions, business associations and educational institutions that have to take new initiatives to improve the situation in the coming future.