MUCH OF THE HYPE surrounding the labour shortage in Canada today creates skepticism in business owners and job seekers. While the labour shortage may exist, it doesn't impact all workers, or employers, equally.
We must also realize that much of the forecast labour shortage hasn't happened yet.
A 2006 study conducted by the Canadian Federation of Independent Business revealed that more than half of Canadian owners of small and medium-sized businesses had great concerns about the labour shortage. The survey polled nearly 12,000 businesses from coast to coast.
Nearly two-thirds of firms expected labour shortages over the next five years. Firms with the most dismal expectations were larger firms, and firms who have had to hire employees during the last five years.
These are the firms with the most hiring experience and the greatest human resource needs.
Nationally, the difficulties in hiring workers were linked to either skills shortages, meaning a limited supply of particular skill sets related to certain occupations, or overall labour shortages.
Labour shortages included an overall shortage of individuals for entry-level positions, or jobs without particular skills requirements.
Nationally, more than one-third of Canadas small and medium-sized businesses experienced shortages of both skills and labour. One-fifth of respondents were impacted by a labour shortage only, while more than 40 per cent of respondents had been only impacted by the skills shortage.
The hardest hit areas for finding employees included jobs that require college or apprenticeship education (42 per cent), or occupations requiring secondary school education or job-specific training (32 per cent).
It was relatively easy to find people for jobs requiring a university degree or managerial occupations. Within the occupations hardest hit by the labour shortage were trades and skilled transport and equipment operators (66 per cent).
Skills shortages are somewhat more difficult for both employers and job seekers, because applicants are available, they just do not have the skill sets that employers are seeking. Many of today's job applicants who are skeptical of the apparent labour shortage fall into the skills shortage group.
This does not mean they have no job skills, it just means that their job skills are not among those in demand.
This can impact people who have lower skills and educational levels, but it can also impact those with considerable experience and education in the field.
While one would anticipate that they would be hired during a skills shortage, even if overqualified, this does not always materialize. In many cases, employers cannot afford, or do not believe they can afford, to hire such a well qualified person.
A number of expatriate Atlantic Canadians have returned home after going west just to find out that there seems to be little room for them in the new economy. Despite years of experience and relevant training, these individuals are unable to land jobs in their fields.
They are also feeling increasingly maligned by governments attempts to attract workers from outside Atlantic Canada when we have homegrown job seekers who cant find suitable jobs.
The CFIB study also focused on which recruiting methods small and medium-sized enterprises find most effective. The top ranked method, not surprisingly, was personal referral, which was selected by 69 per cent of respondents. They were more likely to hire someone who was referred by family or friends.
This should be an advantage for Atlantic Canadians returning home after a stint away, who can begin to tap into their family networks to find work. Atlantic Canada has a rich social history with strong family and cultural ties. Being the prodigal son, or the prodigal daughter, can give one an advantage over those who do not have such social networks.
Job ads in newspapers were the next most effective means of finding employees in the CFIB study (42 per cent). This was followed by unsolicited applications (21 per cent) and external websites (13 per cent).
Only eight per cent used professional recruiting agencies. Firms in Western Canada were more likely to use a larger variety of recruiting sources than other Canadian firms.
What does this mean if you are a job seeker where skills and experience are not in an occupation impacted the labour shortage?
The labour shortage is not going to benefit you when you go into your job search. Most baby boomers can recall days when it really was an employers' market and jobs were scarce.
It will be necessary to use some of the grit and savvy one learned in those days to find such opportunities in the hometown market.
Karen Blotnicky is president of TMC The Marketing Clinic and a professor at Mount Saint Vincent University in Halifax.
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