Evidence of meeting #18 for Industry, Science and Technology in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was businesses.
A recording is available from Parliament.
5:20 p.m.
Vice-President, Research and Chief Economist, Business Development Bank of Canada
Okay.
We have a venture capital fund that is one of the largest in the country and we help a lot of new entrepreneurs with creative ideas. It's through our venture capital fund.
5:20 p.m.
Liberal
5:20 p.m.
Bloc
Sébastien Lemire Bloc Abitibi—Témiscamingue, QC
Thank you, Mr. Chair.
Mr. Cléroux, I am once again browsing through your September 2021 study entitled "How to Adapt to the Labour Shortage Situation; Hiring Difficulties Are Not Going Away".
Under the heading "Message from the Chief Economist", you say that hiring difficulties are reaching worrying heights, but you propose some potential solutions.
For the committee's benefit, could you tell us what your recommendations are for solving the labour shortage?
5:20 p.m.
Vice-President, Research and Chief Economist, Business Development Bank of Canada
In the report you mention, we say that the main solution to this shortage is to invest in technology and automation. We also say that businesses have to look at the labour market differently.
The unemployment rate in Canada is 5.3%, but for young people under 25, it is more than double that. Among immigrants and persons with a disability, the rate is also higher.
So in circumstances where it is very difficult to recruit, we encourage businesses to look at the labour market differently. Many very skilled people are having trouble finding a job, because of certain characteristics.
And we encourage small businesses to improve their hiring processes. Often, businesses hire from within their networks. That may have worked in the past, but now they have to wage war in order to recruit talent. So they have to sell themselves on social media to show they are a good employer. We therefore recommend a set of strategies for small and medium businesses that will help them battle this labour shortage.
5:25 p.m.
Bloc
Sébastien Lemire Bloc Abitibi—Témiscamingue, QC
You did similar studies in 2018 and reported that the labour shortage was a persistent problem. In 2019, you said the labour shortage would slow investment.
Between 2018 and 2021, what changed, other than the COVID‑19 pandemic?
What can we expect, in concrete terms, over the coming months, in an economic recovery context?
5:25 p.m.
Vice-President, Research and Chief Economist, Business Development Bank of Canada
Unfortunately, the labour shortage is here for good. People over 55 account for 21% of Canadian workers. That means they will be retiring in the next 10 years. So unfortunately, we are having to deal with the problem represented by an aging population.
That is why we encourage businesses, first, to realize that the problem is not going to disappear in three months, because if that's what they believe, they won't take long-term measures. They have to understand that we are dealing with a long-term problem. Second, they have to adopt the best strategy possible. The strategy will differ from one business to another, depending on the economic sector, the size of the business, and the capacity to invest in technologies, for example.
The problem is not going to disappear, and we are making a lot of efforts so that small and medium enterprises will be aware of this and persuaded of it. They have to adopt the right measures and the right strategies in order to continue to grow in a context in which, unfortunately, the labour force will not be growing as rapidly as in the past.
5:25 p.m.
Liberal
The Chair Liberal Joël Lightbound
Thank you very much, Mr. Cléroux.
We will now start the last round of questions.
Mr. Masse, you have the floor for two and a half minutes.
5:25 p.m.
NDP
Brian Masse NDP Windsor West, ON
Thank you, Mr. Chair.
Very quickly, is there a particular sector that has been harmed even further? I imagine tourism might be up there, but maybe there's another one that's going to require a different level of service to recover—or is it all going to be boilerplate and “this is what you can expect from the BDC”? Are there going to be a couple of sectors that have been hammered hard that might get a little more attention and perhaps some better leverage?
5:25 p.m.
Vice-President, Research and Chief Economist, Business Development Bank of Canada
The highest level of job vacancies is in the tech industry, and it's not because the industry is not performing well; it's just because there's a very strong demand. The sector has been growing very rapidly. Manufacturing is looking for people in some regions. People can hire thousands of people in manufacturing, because this is a growing sector.
I would like to mention that it's a very difficult problem for food services and accommodation, but this time for a different reason. At the beginning of the pandemic, 20% of the workers who lost their jobs in food services and accommodation moved to another sector because they had opportunities somewhere else. As a result, as the economy is improving in the tourism industries, it's very difficult for them to recruit.
The problem is the same everywhere, but sometimes for different reasons. Some sectors are just growing. Some other sectors were penalized because people decided to move to work somewhere else.
5:25 p.m.
NDP
5:25 p.m.
Liberal
The Chair Liberal Joël Lightbound
Thank you, Mr. Masse.
Thanks to the witnesses in the second group.
I'd like to thank Ms. Kastner and Mr. Cléroux for giving us clear, concise answers. I think this has been a good start to our study of competitiveness in Canada.
I also want to thank committee members, the clerk, the interpreters, the technical support staff, and the analysts.
The meeting is adjourned.
