3 Ways to Reduce Manufacturing’s Skills and Labor Shortage in Canada

This post is by Jenna Ross from Visual Capitalist

The following content is sponsored by Canadian Manufacturers & Exporters.

3 Ways to Reduce the Manufacturing Labor Shortage in Canada

The skills and labor shortage in Canadian manufacturing has been a problem for some time, but it has recently gotten much worse. In 2021, 82% of manufacturers said they faced immediate shortages, up from 39% in 2016.

This graphic from Canadian Manufacturers & Exporters (CME) highlights the extent of the skills and labor shortage, and the steps that can be taken to address it.

A Closer Look At the Labor Shortage

There are more job vacancies than job seekers in manufacturing, for the first time since this data started being collected in 2015.

 Job VacanciesJob Seekers
2015 Q137,42078,400
2016 Q129,52085,200
2017 Q136,25579,700
2018 Q144,23061,900
2019 Q150,53561,500
2020 Q145,16581,700
2021 Q156,690120,900
2022 Q187,43559,700

Labor shortages are most common in general labor and skilled production positions, such as welders and machinists. These shortages persist despite manufacturing jobs paying an average hourly wage of $23.45, well above the average minimum wage in Canada of $14.12.

Manufacturers’ bottom lines are being squeezed by these shortages: 42% have lost opportunities or paid penalties due to a lack of workers.

What can the government and manufacturers do to address the skills (Read more...)