All economic sectors affected by the labor shortage

The labor shortage affects all economic sectors in Quebec, according to a survey by the Canadian Federation of Independent Business (CFIB), which deplores the absence of tax measures for SMEs in the last Girard budget.

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The survey carried out among 1,332 Quebec entrepreneurs shows that the lack of manpower has forced business leaders and employees to work overtime in a proportion of 63% and 45% respectively.

The accommodation and restaurant sectors were affected by this reality with a rate of 79% and 70%, while small and medium-sized businesses in the construction sector cumulated to 65%.

Another consequence of this shortage is that at least two out of five SMEs must refuse sales or contracts, while 26% of them have to cancel or postpone business projects.

This pressure on SMEs is corroborated by recent data from Statistics Canada revealing that the number of vacant positions in Quebec rose from 126,730 in the fourth quarter of 2019 to 238,140 a year later, an increase of 88%.

To stem the labor shortage, the SMEs surveyed are demanding concrete measures from the Legault government, in particular the reduction of taxes (57%) and the improvement of tax credits for businesses (49%).

“The lack of manpower has the effect of making 3 out of 5 SME managers work more hours, and even more significantly in certain sectors”, indicated François Vincent, vice-president for Quebec at the CFIB.

“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” , added Mr. Vincent.


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