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Quebec is the province hardest hit by the labor shortage

Quebec is the province hardest hit by the labor shortage

Labor shortages have been particularly felt in Quebec, forcing most businesses to refuse sales, or even permanently close their doors, according to a recent survey by the Canadian Federation of Independent Business (CFIB).

Notably, this shortage has forced business leaders and their employees to work longer hours to compensate, up to 63% and 45%, respectively.

The sectors of residence (79%), restaurants (70%) and construction (65%) are particularly affected by this increase in working time.

“The shortage of manpower has resulted in three out of five managers of small and medium-sized businesses working longer hours, and more importantly in certain sectors. Indeed, it has the effect of a controlling tool on sectors of economic activity in Quebec,” declared François Vincent in a press release, Quebec Vice President at CFIB.

Two out of five SMEs have had to turn down sales or contracts due to staff shortages, with 26% having to cancel or postpone projects.

This result is seen 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 job vacancies also increased by 88% in Quebec between the fourth quarter of 2019 and 2020, going from 126,730 to 238,140.

So it’s time for Quebec to adopt a plan to reduce the tax burden, improve tax credits to combat labor shortages and increase the candidates available through permanent immigration. Mr Vincent added: The longer we wait to act, the more difficult it will be to climb the coast and the greater the negative effects on our economy.

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The survey was conducted with 1,332 CFIB members in Quebec from March 14 to April 7, 2022.