Good afternoon, fellow panellists, and especially honourable members of the committee.
I am Andreea Bourgeois. I am senior policy analyst with the Canadian Federation of Independent Business. I represent over 11,500 members in Atlantic Canada. I just want to make it clear that I speak on behalf of our members in Nova Scotia, New Brunswick, and Prince Edward Island.
Because I know the time is limited, I am going to start with the end of my presentation, which are the recommendations. Basically, CFIB has three main recommendations that will vary by province, so I will give you the general recommendations and then get into specific provincial numbers.
The first one is that we would like the government to ensure that government initiatives help, not hurt, growing labour shortages. I'm going to give you one example of a great initiative that has been very well received by the small business owners--the one with the federal apprenticeship handout. It has been great. I have received many phone calls asking when you are going to expand it. That's one of the things that worked really well. It was implemented very fast and people have clear indications of how to apply for it.
The second recommendation is to focus on multi-level approaches and policies. I am just going to build on what my colleague actually spoke about, and I'm going to give you one example of what I mean about including provincial partners in that equation. Let's say everyone here in all the Atlantic provinces talks about immigration right now. You have the power to increase immigration and to promote immigration in these provinces. However, language training is something that has to be done in partnership with the provincial education departments. It would be best if they were aware in advance when immigration is to be promoted here, rather than after the fact.
The third recommendation is that businesses understand they do have a role to play. They know they are responsible, and we're not asking for funding; they're not asking for money. It's a solution that will also actually involve you, involve departments of educations locally, and involve all kinds of other partners and business owners themselves.
I think it is time for the federal government to step up and be the big brother and provide information and education to business owners on how to achieve their goals. I am talking about the region. It's not an unknown fact that the Atlantic provinces have performed well in the past years; however, they are lagging behind the Canadian average.
They do have very healthy employment plans for the future, however. In terms of full-time employment, we have 67% of businesses in the maritime provinces that plan to increase full-time employment and 78% that plan to increase part-time employment for the next year.
However, what happens is that they have labour shortages. I know the numbers don't seem much, maybe, in comparison to what we hear of in western Canada, but years ago the numbers here used to be in the 20% range. Right now in P.E.I., the smallest province, 47.5% of business owners complain about labour shortages. It's huge for the Island. They used to be in the 20% range; now it's double that.
In New Brunswick the figure is 42%. In Nova Scotia the figure is 31.3%. These are huge numbers for this region.
One of our reports published last year, based on two years of data, showed that there are long-term vacancy rates. At any point in time, a business will have a vacancy. It's the natural course of action. A long-term vacancy occurs when they have had a position open for more than four months. These vacancy rates have been persistent in 2004 and 2005, and they have been increasing from 3.1% to 3.7%. Just to give you an example for New Brunswick, it's the third highest rate for Canada. Of course, you have Alberta and B.C. that were on top of that, and Saskatchewan, followed by New Brunswick.
I don't think we should wait for the situation here in the Maritimes to get as bad as in the west before we actually do something to help the business owners.
Moreover, when we asked them about the future, entrepreneurs seemed to be optimistic. That's the way they run their businesses. However, they were very pessimistic in terms of employment. As to whether they believe it will become easier or harder, 70% said it's going to become even harder to employ people in the next five years. They already see it as hard, but when they said “harder”, that really scared us.
Just to give you again the magnitude of the numbers for the long-term vacancy rate, what this meant was that in 2005 alone there were 2,500 jobs open in P.E.I. That may not seem a lot for Ottawa. That's probably an apartment building, but it's a lot for the Island economy. In Nova Scotia there were 12,000 jobs--a good couple of apartment buildings here--that could have been filled with people working.
Business owners don't actually stand on the side and wait for someone to solve their problems. What they do is obviously hire underqualified people and then train them. They pass responsibilities among the employees they have, and so on.
And worse, some of them ignore business opportunities. There is a very high likelihood of a business owner in the Maritimes ignoring business opportunities. They just don't know where else to go and they prefer to say no to an order coming in.
I wanted to tell you what is specific to this region. While all across Canada the most cited difficulty for hiring was the lack of candidates with education, experience, or the set of skills, what was more likely to be said in the Maritimes as to why they had hiring difficulties was first of all about the lack of resources to pay a higher salary. It's very hard to compete.
By anecdotal evidence you know that the federal government is a very big employer in the region. They offer very good packages and benefits. It's very hard for small businesses to compete. They need the same qualified people as everyone else.
The other reason was that “there are too few people in my local area looking for work”. Those were entrepreneurs in northern New Brunswick saying that. Well, where do they think the employees went? They went out west, so of course it's hitting them. It's a different kind of problem than what you have in the west, but it's hitting them here too.
The third reason is the nature of the work. The reality in the Maritimes is that there is a lot of seasonal and temporary work. A fish plant cannot work more than a couple of months a year—if they're lucky, maybe May to October; if not, it's only a twelve-week season a year. What do those employees do after that?
These reasons are way more likely to be quoted as very hard difficulties here in the Maritimes than in the rest of Canada.
The next slide talks about training. What they actually do when they employ someone who's underqualified, who doesn't have the experience, who doesn't have the skills, is they train them. It's very common in Atlantic Canada to provide informal training. It's very easy to recognize where formal training is; however, here they prefer to be trained by their suppliers, by a mentor within the business, or by someone else who has more experience. Sending employees out for training is much less practised in this region of the country.
Of course, the top three things the federal government can do to help with the shortage of labour are to lower the tax burden—that would allow them to have more resources to pay their employees and to invest in training; rebalance the social programs, such as EI, and lower the payroll taxes; and offer more information on where to access training.
Thank you.