Employers are having a hard time hiring workers, are pushing them to work longer hours, and are rejecting new orders, which is hampering growth for the majority of Canadian businesses, a new study says.
Forty-four percent of the entrepreneurs delayed or failed to deliver orders to their clients.
The labour scarcity has led 61 percent of business owners to increase their own or their employees’ work hours, while 49 percent had to provide more wages and benefits.
“Fortunately, while labour shortage is here to stay, entrepreneurs can take key actions to limit the impact of this situation on their growth,” he said.
The BDC suggests three solutions to tackle the labour shortage including adopting new technologies and automation, using a formal hiring process, and offering a total compensation package.
The BDC says that seeking higher wages (57 percent) is the main reason workers will change jobs in the next year, followed by seeking more benefits (32 percent).
The study also found that the pandemic has led to a sector migration within the labour market, with roughly 20 percent of workers who lost their jobs moving to a different field of employment.
The BDC study includes a survey of over 1,200 Canadian entrepreneurs and another survey of 3,000 workers on the impact of the labour shortage on their jobs.