Addressing Skills Shortages in Small and Medium-Sized Enterprises
August 14 2024 - 8:00AM
In fast-growing Canadian cities, skills shortages are the most
common employment challenge facing small and medium-sized
enterprises (SMEs), according to new research from The Conference
Board of Canada. The analysis focused on Abbotsford-Mission, B.C.,
Halifax, N.S., Moncton, N.B., Oshawa, Ont., and Saskatoon, Sask.,
which saw rapid immigration population growth between 2016 and 2021
and is a summary of conversations with SME owners and senior
leadership from nine sectors.
“While Canada relies heavily on immigration to address labour
and skills shortages, newcomers often encounter significant
barriers to entering the labour market,” stated Stefan Fournier,
Executive Director, The Conference Board of Canada. “To effectively
unlock the full potential of the immigrant talent pool and address
these shortages, SMEs must proactively work to dismantle these
barriers.”
The labour shortage faced by SMEs across Canada is not due to a
lack of applicants but to a scarcity of candidates with the
requisite skills. For newcomers, SMEs prioritize English and French
proficiency. However, some immigrants struggle to develop the
required language proficiency due to limited access to language
classes and the tendency of SMEs to overlook language as a
learnable on the job skill.
Furthermore, complicated immigration systems dissuade SMEs from
turning to immigration to meet their labour needs. Negative
experiences with immigration programs, including ambiguity about
the processes and outcomes, underscore the need for collaboration
between SMEs and SME-serving organizations. Such partnerships can
improve SMEs’ access to information about immigration procedures
and their ability to navigate the system effectively.
“Challenges around sourcing staff continue to occupy the minds
of business owners in Canada,” says Pouya Zangeneh, Senior Vice
President of Small Business at Scotiabank. “New Canadians, with
their diverse skills and experience, provide a valuable pool of
talent that can play a critical role in alleviating the skilled
worker shortage that Canadian Small Businesses often face.”
Although SMEs have adopted inclusive hiring practices, these
initiatives lack inclusive recruitment and onboarding strategies,
further impeding employment opportunities for immigrants. Engaging
with immigrant-serving organizations can help facilitate the
attraction, retention, and successful integration of immigrant
talent into local labour markets.
Additional hurdles compounding labour market challenges are
affordable housing, public transit, and accessible childcare. While
businesses may not be able to directly tackle the unique
infrastructure challenges of small and mid-sized cities, adapting
workplace policies to accommodate transit accessibility and
childcare responsibilities could be significant in alleviating
these obstacles.
Given Canada’s skills shortages and the pivotal role of
immigration in filling workforce gaps, concerted efforts by SMEs
and SME-serving organizations are needed to fully leverage Canada’s
immigrant talent pool.
Media Contact
The Conference Board of CanadaE-mail:
media@conferenceboard.caTel: 613-526-3090 ext. 224
ScotiabankElizabeth McFadden, Email:
Elizabeth.McFadden@scotiabank.com Tel: 416-564-0851
About The Conference Board of Canada
The Conference Board of Canada is the country’s leading
independent research organization. Since 1954, The Conference Board
of Canada has been providing research that supports evidence-based
decision making to solve Canada’s toughest problems. Follow The
Conference Board of Canada on Twitter @ConfBoardofCda.
About Scotiabank
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partner, to deliver sustainable, profitable growth and maximize
total shareholder return. Guided by our purpose: "for every
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