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 Vacancies | Job Seekers | |
|---|---|---|
| 2015 Q1 | 37,420 | 78,400 |
| 2016 Q1 | 29,520 | 85,200 |
| 2017 Q1 | 36,255 | 79,700 |
| 2018 Q1 | 44,230 | 61,900 |
| 2019 Q1 | 50,535 | 61,500 |
| 2020 Q1 | 45,165 | 81,700 |
| 2021 Q1 | 56,690 | 120,900 |
| 2022 Q1 | 87,435 | 59,700 |
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...)