The lack of labor has been particularly felt in Quebec, forcing most companies to refuse sales, or even close their doors permanently, according to a recent survey by the Canadian Federation of Independent Business (CFIB).
This shortage has notably forced business leaders and their employees to work more hours in order to compensate, up to 63% and 45% respectively.
The accommodation (79%), catering (70%) and construction (65%) sectors are particularly affected by this increase in working time.
“The lack of manpower results in three out of five SME managers working more hours, and even more significantly in certain sectors. In fact, it has the effect of a steamroller for the sectors of economic activity in Quebec”, declared in a press release François Vincent, vice-president for Quebec at the CFIB.
Two out of five SMEs have had to refuse sales or contracts due to the shortage of employees, when 26% of them have had to cancel or postpone projects.
This consequence is felt in the construction (67%) and manufacturing (45%) sectors, but also in the restaurant sector (48%) where many closures have taken place since the start of the COVID-19 pandemic.
The number of vacant positions also increased by 88% in Quebec between the fourth quarter of 2019 and that of 2020, going from 126,730 to 238,140.
“It is therefore time for Quebec to adopt a plan to reduce the tax burden, to improve its tax credits to combat the labor shortage and to increase the candidates available through permanent immigration. The longer we wait to act, the harder the coast will be to climb and the greater the negative impacts will be for our economy,” added Mr. Vincent.
The survey was conducted with 1,332 CFIB members in Quebec from March 14 to April 7, 2022.
