Maple News reports that labour shortages across Canada have reached critical levels, with small businesses among the hardest hit. According to recent findings from the Canadian Federation of Independent Business (CFIB), over 50% of small and medium-sized enterprises (SMEs) are facing staffing difficulties due to hiring and retention challenges.
The issue has been longstanding but was significantly worsened by the COVID-19 pandemic. With some companies unable to recruit or keep enough employees to meet demand, operations have been disrupted. Roughly 16% of businesses say they have enough staff, but only after absorbing substantial costs associated with higher wages, hiring bonuses, or offering flexible work arrangements.
These human resource challenges have had a real economic impact. In June 2021, nearly one-third of small businesses reported that they had to delay or abandon projects and turn down contracts and sales due to a lack of available workers.
CFIB stresses that the solution isn’t as straightforward as increasing salaries. While higher pay may help attract talent, it also leads to increased labour costs and supports upward pressure on inflation. Instead, business owners are pointing to two immediate and pragmatic solutions: boosting investment in automation and reforming the Temporary Foreign Worker Program (TFWP).
The TFWP has shown considerable success in sectors such as agriculture, professional services, retail, manufacturing, and finance. Despite these promising results, only 16% of businesses reported using the program, largely due to its complexity, cost, and current restrictions. In many cases, it is deemed impractical—especially for SMEs—because some occupations do not qualify for the program.
Business leaders and advocacy groups like CFIB argue that while broader, long-term strategies are needed to address the nation’s shrinking workforce, targeted reforms to the TFWP could provide immediate relief. Streamlining the process and expanding eligible roles could make it a more accessible and cost-effective resource for employers.
Demographic data also adds urgency to the issue. Canada’s working-age population has been gradually declining since the 1990s, and current forecasts project the trend will persist through 2050. Without intervention, the country could face a severe shortage of qualified labour, risking future economic growth.
In the short term, enhancing Canada’s immigration pathways—particularly work visa programs like the TFWP—could create critical support for industries facing persistent hiring gaps. Maple News will continue to monitor policy developments and industry reactions as Canadian decision-makers consider adjustments to labour and immigration frameworks.