Ladies and gentlemen, members of the committee, good afternoon.
My name is Karl Blackburn, and I am president and chief executive officer of the Quebec Council of Employers. I am accompanied today by Mr. Denis Hamel, vice-president, workforce development policies.
I am an entrepreneur, the son of an entrepreneur and the grandson of an entrepreneur. Our organization, created in 1969, is a confederation of nearly 100 industry associations and a number of corporate members of all sizes and from all regions of Quebec, in both the private and parapublic sectors.
The labour shortage is clearly the major problem faced by employers. Over 6% of positions are currently vacant in Quebec. To illustrate the scope of the problem, I would say that there are more vacant positions in our province than employment insurance recipients. In a recent survey of our members, 94% currently feel they have a hiring issue, and nearly nine of 10 employers are concerned about the effects of the labour shortage on the quality, price and availability of the goods and services they offer.
They are right. Indeed, several recent studies demonstrate the major negative impact of the labour crisis and the high number of vacant positions on our economy: refusal of contracts, discontinuation of goods and services, displacement of production outside the country, delayed investments, reduced competitiveness, deterioration of the quality of goods or services, lost revenues for governments, and more. We are losing billions of dollars. For example, in Quebec’s manufacturing sector alone, which accounts for 13.5% of the province’s GDP, our colleagues at Manufacturiers et Exportateurs du Québec have estimated the losses due to the labour shortage at $18 billion over the last two years. I cannot imagine the loss of revenue across the country.
We know that, given our demographics, this shortage will continue until the end of the decade. Data from census 2021 released last week by Statistics Canada confirm that the working-age population in Canada has never been as old, with over one in five people—21.8%—being between 55 and 64 years old. That age group is larger than young adults between 15 and 24 years old. This large group of older workers will be retiring by 2030, thus exacerbating the labour shortage. There is an urgent need to act now, as our prosperity is being hindered by the labour shortage.
Employers are already making efforts, but with no success. These solutions include increased wages, additional benefits, hiring bonuses, the inclusion of original social activities and continued telework to expand the pool of potential employees. However, the number of vacant positions in Canada has doubled in one year, from 560,000 in the fourth quarter of 2020 to more than 915,000 at the end of 2021.
The labour shortage is an issue that affects all provinces and all economic sectors. It is creating a real crisis in the construction, manufacturing, retail, health care, and accommodation and food services industries, which account for over half of the total number of vacant positions. This is not just a problem for employers. Employees are also suffering, as the labour shortage leads to work overload and a lack of vacation or training. Moreover, for Canadians, the labour shortage results in service outages, delays in obtaining goods and services, closed restaurants and hotels that are operating at only half their capacity. No one wins from a labour shortage.
On a more positive note, the labour shortage must be an opportunity for businesses to adopt new solutions to support their long-term growth and productivity. I am thinking particularly of the adoption of new technologies, automation, and the development and integration of green technologies. To make this shift, increasingly qualified employees are needed, who are unfortunately not there.
In August 2021, we proposed 10 solutions to the labour shortage, as there is no one-size-fits-all solution to this problem. We called for labour market stakeholders to work together to find concrete short-term solutions to improve the literacy and numeracy of workers, increase on-the-job training, particularly through the employment insurance system, attract and retain experienced workers, support employers in their transition to diverse arrangements and practices, and modernize immigration programs to adapt them to this new reality.
We recognize the progress that has already been made by the federal government, particularly in terms of immigration. That said, the figures speak for themselves. This crisis is not over, and we must not give up. We must work together to find solutions as soon as possible.
Now, ladies and gentlemen, Mr. Hamel and I are available to answer questions from the members of the committee.
Thank you for your time.