Thank you very much.
First, Mr. Allison, you're familiar with our organization. CFIB represents small and medium-sized businesses in this country and in this province. We are the largest business organization in the country and province representing small business. We conduct research. This research has allowed me to be here today to present to you on employability, one of the most important issues to our members and small business communities as well.
Let me start by saying that within our research over the last five years, CFIB has tracked the level of business confidence and optimism and we have found that in Newfoundland and Labrador, over the last year and a half, business confidence and optimism is increasing. We're very pleased to see that for small and medium-sized business. Over the next 12 months, small-business owners in this province expect to hire full-time employees, for the most part. Our research shows that 31% of owners of small and medium-sized business expect to increase their full-time employment. Only 5% expect to decrease that level of full-time employment. Things are looking up for small and medium-sized businesses.
However, in much of our research we found that unemployment insurance always tops the priority list as number one. This is unique to Newfoundland and Labrador. Across Canada, my colleagues always have the tax burden as number one. It would help me considerably if I could walk into our finance minister's office and say the same here.
A shortage of qualified labourers has been gradually creeping up the list. This year in September, according to our latest research, it has now topped the national average. It is becoming a significant concern all across this province, from northern Labrador to the west coast and the east coast. A shortage of labour, finding employees, is becoming more and more difficult.
To drive home that point, we've recently done a report on immigration, and in that report, which we will be releasing in November, we asked the same question we asked two years ago: will it become easier or harder for Newfoundland and Labrador small and medium-sized business owners to hire in the next five years? 79% of small and medium-sized business owners in this province said that it will be harder to hire employees in the next five years. So despite having the high level of optimism, despite wanting to hire, to increase the full-time levels of employment, 79% feel that it will be harder to hire, 3% believe it will be easier, 15% feel it won't change, and 3% were unsure--79% harder, 3% believe it will be easier. This too was above the national average of 67%.
Trust me when I say that these numbers have crept up over the last few years.
To drive home how much of a problem this has become--and it surprised me, really--we put out a report last year. We conducted a survey that determined that last year there were 3,500 long-term vacant positions in this province. We define “long-term” as positions that are vacant for more than four months. So with the highest unemployment rate in the country, business owners in this province last year had 3,500 vacant positions. You can imagine, when this report came out, how many phone calls I received asking where those positions were. But it's the matching of skills. It's fair to say the shortage of qualified labour is a significant issue for small-business owners in this province.
What's deeply disturbing is how small and medium-sized business owners are trying to solve these hiring difficulties. 59% of our members tell us they are hiring underqualified people, and 39% are passing responsibilities on to other employees. It doesn't do much for productivity in our workplaces when this is what they have to do. 38% are ignoring new business opportunities.
The next ones down the list are very difficult for employees and employers right now: improving salaries, hiring temporary help, use of overtime, increasing wages, high energy costs, and high insurance costs. These are significant issues for small and medium-sized business owners. It's something we have to get around.
And it affects training. Newfoundland and Labrador had the lowest level of training last year. We had the highest level of formal training, but that's due to occupational health and safety legislation we have in this province. SMEs in Newfoundland and Labrador desire to increase training, but training costs have increased as well.
We've asked our members in what ways government can help small and medium-sized enterprises. They've said the government can help lower the tax, lower the shortage of qualified labour, lower the tax burden, and give them money they can put into training.
We recommend that governments help, not hurt, the growing labour shortages, expand the growth of the apprenticeship programs--they had money in this past budget to help apprenticeships-- ensure that immigration systems reflect the needs of today's marketplace, and focus our multi-level approaches and policies related to immigration and EI. We have particular problems with EI, which I hope to expand on. Business owners understand they also have a role for training and co-ops, etc.
We'll be coming out with a report in November that we will present to government. We need to work with all levels of government, because this is a significant issue here in this province.