Recruitment Problems and Solutions in Canada’s Labour Crunch

Businesses across just about all sectors in Canada are scratching their heads right now as they assess their recruitment problems and solutions. According to the most recent data from Statistics Canada, total labour demand (the sum of filled and vacant positions) reached a record high of over 17 million in June.

There were 114,400 job vacancies in retail, 82,800 in manufacturing, and 49,000 in transportation and warehousing. For brands, that means there aren’t enough making your product, shipping it, or selling it.

What’s driving these recruitment problems and are there any solutions?

Recruitment Problems and Solutions

According to experts, there are two significant factors driving job vacancies, particularly in areas like retail, manufacturing, and transportation and warehousing.

  • Workers migrating to different sectors

First, many Canadian workers are leaving certain industries for jobs in other sectors where there are potentially higher wages. In a tight labour market, job seekers have the advantage, so they will continue to seek out higher wages.

For instance, between January 2019 and July 2022, the number of employees in transportation and warehousing decreased by 2.3 per cent, while the number of employees in the professional, scientific, and technical services sector increased by almost 20 per cent during the same time.

This is likely because wages in the latter sector increased by 13 per cent during that time to an average hourly wage of around $35. Meanwhile, the transportation and warehousing sector still pays on average $10 less per hour in comparison.

  • Workers exiting the workforce

Second, many workers left their jobs over the last two jobs because they either decided to retire early or went to school to retrain.

Moreover, the data shows a concerning, long-term trend. Canada’s labour force participation rate has been steadily declining since 2003 as an aging population is retiring and there haven’t been enough younger people to fill these roles.

Brands and employers in retail, manufacturing, and transportation and warehousing will have to find ways to entice workers out of retirement with attractive compensation packages whether it be salaries, benefits, or flexible working hours. Likewise, attractive part-time positions could draw students to help address labour shortages.

Retailers, Manufacturers, and Brands Need Help More Than Ever

Is your dedicated field team struggling to manage vacant territory gaps throughout the country? As you assess recruitment problems and solutions, we can support you with field coverage to ensure you do not miss a beat out at retail.

Marketsupport operates in a variety of markets, including consumer products, hardware, pharmacy, grocery, retail, and more. We have a field force of over 500 qualified professionals across the country who can provide interim support while you focus on recruiting.

To learn more about how we can help, call 1 905 847 6513 or visit our website.

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