Thank you.
I appreciate the opportunity to speak to you tonight, on behalf of Canada's $80-billion food service industry, about immigration to Atlantic Canada.
The food service industry is a vital part of Atlantic Canada. Restaurants are one of the only industries to span the rural-urban divide and operate in every corner of the region, from the large cities to the remote communities. In Atlantic Canada, we are the third-largest private sector employer, with nearly 70,000 employees, generating $4.7 billion in sales and 1.8 million customer visits a day.
We are also proud to open the door to opportunity for young people, new Canadians, and those facing barriers to employment. Every dollar spent in a restaurant generates $1.85 in the rest of the economy, providing opportunities for farmers, fishers, builders, designers, brewers, and a whole list of other local suppliers.
More than two-thirds of our 7,000 businesses in the region are independently owned and operated. Our pubs, our bars, our coffee shops are the centrepiece of most communities, welcoming tourists and locals alike.
We are grateful to be consulted on Atlantic immigration. We believe immigration is crucial to the survival of both the region and our businesses. An abundant workforce is essential to the industry because of the labour-intensive nature of the business. Nearly 30¢ of every dollar coming in from sales goes directly to payroll in our businesses.
We are also an industry of young people and proud to be the country's largest provider of first-time job experiences. Nearly half of our employees are under the age of 26. This is a major reason why we need more immigration to Atlantic Canada. In this region, we are experiencing the nation's largest decline in youth. The labour shortage in Atlantic Canada is real, and the shortage of key staff is leading operators to decide to reduce hours or close early. This leads to fewer hours and job opportunities for other restaurant staff and a smaller market for our suppliers. In fact, in our recent quarterly survey, 55% of our operators say that the labour shortage is having a negative impact on their business.
The industry always tries to hire Canadians first, and we are continually trying to find employees in underutilized labour pools. However, this has not curbed the demand or filled our need, and the industry is experiencing acute shortages, particularly for cooks and kitchen helpers. Without these key employees, operators are forced to curb hours to prevent employee burnout. This leads to fewer offerings for tourists, less economic activity for communities, fewer hours for employees, and fewer sales for industry suppliers.
Restaurant operators are desperate for employees, particularly for cooks and many low-skilled positions. In recent years, the restaurant industry has been a top user of both the temporary foreign worker program and the provincial nominee program to meet our labour demands. In combination, we have found these extremely useful in finding employees and transitioning them to become Atlantic Canadians. PNP programs have been the most helpful, and I encourage you to recommend expansion of these programs, with the inclusion of all skill levels.
When the Atlantic immigration pilot program was announced, we were very optimistic and extremely pleased, because it did not require an expensive LMIA and we thought it would be efficient and focused. Experience has taught us that “efficient” and “focused” are the last words we would ever use to describe this program. To business operators, it is an extremely complex, complicated, and time-consuming bureaucratic process that has made many operators decide to just give up in frustration rather than try to use this program.
We need these 2,000 extra immigrants, but we are afraid that we won't reach the numbers and it will not be renewed. Most employers who have attempted to use this program have become designated employers and have been waiting in limbo for months and months for third party settlement plans, for letters of endorsement from a different level of government, or for the immigration department to process a candidate's application.
I'm going to turn it over to Bill, who is the chair of our national board and an operator in New Brunswick who has operations in three of the maritime provinces. He has used many of these programs and has been proud to bring many people to settle in Atlantic Canada.