This text is part of the special Business Challenges section
The lack of workers is a barrier major contributor to the development of 85% of Quebec SMEs. This is the main conclusion of the latest omnibus survey from the Canadian Federation of Independent Business (CFIB) carried out in May 2023 and which compares developments with data from 2021.
Of the total, 60% of SMEs are directly affected. Either they cannot find the employees to meet immediate needs, or they do not have the personnel to ensure their growth (expansion, increased demand, etc.). But for another 25% of companies, they claim to have been able to find the necessary staff at the cost of significant additional outlays in salary increases, hiring bonuses, flexible hours.
Only 9% of some 900 respondents say they have no difficulty meeting their labor needs. “It’s a slight increase compared to 7% in 2021, but the situation remains very, very tense,” notes François Vincent, vice-president for Quebec at the CFIB. “This means that the development of 85% of SMEs is compromised, and SMEs are the economic engine of Quebec. »
The portrait produced by this 12-page report is rather gloomy. For 46% of respondents, labor shortages call into question their survival in the short or medium term. Most (40%) say they will not last more than four years, and 6% less than a year.
In this regard, François Vincent notes a notable improvement compared to 2021, when 57% had no hope in the short and medium term. “This is explained by the fact that resumes are starting to come in whereas in 2021, many employers did not receive any applications for the positions posted,” he says. On the other hand, the long-term outlook is deteriorating. 33% of them believe that the current situation is untenable for more than five years, while they were only 23% in 2021.”
François Vincent says he is particularly struck by the statistics on the type of job in shortage, because the worsening is notable for full-time positions. For production and specialized trades, the share of positions seeking personnel increased from 67 to 80%. This increase of 12-13 points is the same for technical and administrative staff, sales, executives. “It’s full time,” he emphasizes. This confirms that the long-term outlook is getting worse. »
Benjamin Rousse, policy analyst at CFIB, notes that the most striking effect of this shortage is what he calls the “8-day week.” This statistic is taken from another report, produced in April 2023, which showed that SME owners had to work 59 hours per week, of which 20 hours are intended to compensate for the lack of employees. “They won’t be able to continue at this pace for ten years,” he said.
François Vincent underlines the collateral damage of this work overload. “This puts a strain on our entrepreneurs who are forced to work more hours to put out fires, run the cash register, sell on the floor, when they have other things to do. Some people no longer even have time to look for employees! »
Exiting the eight-day week
If we want entrepreneurs to get their heads above water, Benjamin Rousse argues that SMEs will need a concerted policy. Because the capacity to resolve the labor shortage individually is, after all, very limited.
“One of the most popular solutions is to reduce opening hours,” he says, “but this necessarily affects business and profitability since the fixed costs are the same. In short, we can change our processes to respond to circumstances, but it is not always for the best. »
François Vincent believes that certain government programs are starting to have an effect, but he is sad that these programs mainly benefit large and medium-sized businesses. “There are excellent programs, but only a quarter of SMEs are aware of them, and this knowledge is decreasing year after year because entrepreneurs spend too much time scrambling to fill staff shortages, instead of ensuring good management of their business. »
With governments, the CFIB is therefore working on various solutions to inform businesses, but also regarding tax and migration policies. One of the main recommendations of the CFIB report is to create an interministerial action group which would bring together seven ministries (Employment, Economy, Finance, Education, Higher Education, Immigration, Labor). “It was the action group for the future of the French language that gave us the idea,” says François Vincent. An interdepartmental task force on job shortages, which meets twice a year to coordinate, would force better coordination between ministries that too often work in silos. »
According to Benjamin Rousse, the CFIB, which participated in the consultation on immigration, is of the opinion that Quebec must raise its immigration threshold from 50,000 to 68,000 rather than only 60,000. “It also takes a better alignment with the needs of SMEs. Immigration delays are also too long. »
According to François Vincent, the other priority will be to launch a project on the taxation of Quebec SMEs. “Our payroll taxes are 31% higher than in Ontario and Quebec is the only Canadian province not to offer a reduced rate for small businesses, which also do not benefit from a favorable tax rate , as is the case elsewhere. »
This tax system, he explains, must be more advantageous for companies with fewer than five employees, which make up half of SMEs. “Our members are demanding it, not to put money in their pockets, but to automate, pay their people better, to be able to build. »
Reasons to persevere
Immigrants to the rescue
This content was produced by the Special Publications team at Duty, relating to marketing. The writing of the Duty did not take part.