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Shortage of labour : the finance and insurance fare better, according to the BOC

by

Hubert Roy

October 18, 2018 09:30

Difficult to find the workforce in finance and insurance ? His employers are faring better than other industrial sectors, says a study by the business development Bank of Canada.

It surveyed 1 208 businesses in the country. The companies surveyed in the areas of insurance, finance and real estate said in a proportion of 28% that it was difficult for them to recruit, the lowest note in the matter.

Is it to much easy for the companies in these sectors to hire new employees ? This are the 36% who say yes. In this chapter, only the companies in professional services have claimed that they were easier for them to recruit, in a proportion of 43 %.

A long standing problem for the next 10 years

The recruitment of the skilled labour, however, is not a panacea for canadian businesses, says the business development Bank of Canada. She has also titled his report : Shortage of manpower : a long standing problem. The bank indicates that almost 40 % of small and medium-sized companies are struggling to hire new employees.

“The situation continues to get worse, one can read in the report of the Bank. Because of our aging population and retirement of baby boomers, it is anticipated that the growth of the economically active population will fall to near 0 %. “

The Bank believes that the shortages of labour will not reverse, not before at least ten years. “Our statistical analysis shows that companies most affected by shortages of labour are 65 % more likely to experience low growth. “

Hiring immigrants : the last solution

One of the solutions adopted by the business development Bank of Canada to compensate for the lack of manpower. However, to the dismay of the Bank, this is the strategy that canadian businesses are the least likely to adopt, have they entrusted to you. “This is a missed opportunity, which could help to address the shortage of manpower,” said the Bank.

The Bank has also made an analysis of the evolution of the unemployment rates of immigrants with data from Statistics Canada. There, she discovered that the unemployment rate for immigrants in 2017 is 0.5% higher than that of Canadian-born. And yet, she considers that this data is skewed by the fact that it includes the markets of Toronto and Vancouver, which are known to be places where immigrants integrate better. By removing the data of unemployment of these two cities, the gap between the unemployment rate climbs to 1.2 %.

The consequences for entrepreneurs

The business development Bank of Canada has also probed the practical consequences of the shortage of labour on SME’s. Overload the work of the employees and increase wages are the main effects of the shortage of labour.

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