No end in sight for B.C. labour shortfall: study

Retiring baby boomers causing demographic labour pool shift

The future looks bright for the next generation entering the B.C. labour force, according to an economic analysis by Business Development Bank of Canada.

Pierre Cleroux, BDC’s chief economist, predicts the province’s health economy coupled with a shortage of workers will create a tremendous opportunity for appropriately skilled job seekers over the next decade.

Cleroux says B.C.’s current labour shortage is more acute in the Okanagan than other regions in Canada, noting BDC’s analysis found 45 per cent of businesses across the province report having difficulty hiring new employees.

He said the hardest hit industries are manufacturing, retail and construction, the latter two most widely evident across the Okanagan Valley by the plethora of job vacancy billboards signage outside businesses and construction projects delays incurred due to labour shortfalls.

Related: Health care, high tech jobs top B.C. employment forecast

Cleroux said the labour shortage is a reflection of the aging population demographics—in 10 years some 25 per cent of Canadians will be retired, compared to only 12 per cent a decade ago.

“The baby boomers are now starting to retire and there are not enough people coming up behind them to fill the jobs they are vacating,” he said.”It is an issue for B.C. but it’s going to be an issue for the entire country moving forward.”

The solutions to that problem, he says, lie in further technology investment to off-set labour shortfalls, employers continuing to seek greater operating efficiency, hiring more immigrant workers and marketing your workplace as a great place to work among existing and new employees.

Cleroux said the immigrant issue is particularly perplexing, as Statistics Canada data shows immigrants will account for about two-thirds of Canada’s population growth by 2022, and up to 80 per cent by 2032, yet currently only 18 per cent of Canadian entrepreneurs report looking to immigrant workers to fill their needs for skilled employees, according to the BDC report.

“The labour force is changing across Canada reflecting a greater reliance on immigrant workers and it takes time for those adjustments to become the new reality. These people are coming to this country and want to work, they are bringing considerable skills, so we need to adapt to this new reality.”

Related: Who will care for fraily elderly?

Cleroux said having to dedicate more time to creating a marketing strategy to fill job postings can be daunting for time-stressed small business operators, but is necessary to remain competitive in a job market.

For B.C., Cleroux also downplayed the significance of increasing the minimum wage, saying it only makes lower skilled jobs more expensive to fill, making the trade-off opportunities to use technology to streamline production a more attractive option.

“There is a much better solution to help people with lower skills to get more employable skills and find better jobs, and that is education. Education is everything.”

Cleroux said B.C. is also well positioned to benefit from the increasing growth demands of the technology sector across North America, as the province technology sector has a current annual growth rate of about five per cent.

“That is a phenomenal growth rate and it’s not likely to change as technology advancement becomes more and more important to companies. It’s a great way to diversify an economy and evolve out of the dependence on resource-based industries like forestry and mining.”

He said the healthcare sector will also continue to expand, another reflection of the aging population factor.

“That is great news for young people. The number of healthcare jobs has steadily increased in recent years, and it is just the beginning. With our aging population, the demand for health service workers is going to explode.”

To report a typo, email: edit@kelownacapnews.com.


@BarryGerding
barry.gerding@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Vernon man seeks glory, beer, on frozen pond

Financial advisor Randy Wilson plays in one of world’s largest pond hockey tournaments

Vernon Mission bundles up for Coldest Night of the Year fundraiser

Coldest Night of the Year walk looks to give a unique perspective on sleeping rough

Regional district seeks $13 million to get rolling on Rail Trail

Federal grant would pay for a paved path from Sicamous to Armstrong

Vernon missionary helps feed Guatemalan children

Seeds to Harvest brings Gleaner’s food to those in need to relief efforts.

BC SPCA investigates Okanagan woman with prior animal abuse convictions

BC SPCA is investigating a property near Vernon

Sell regulated heroin to curb B.C.’s overdose problem: report

B.C. Centre on Substance Use points to organized crime and money-laundering as contributing factors

Galchenyuk scores in OT as Coyotes edge Canucks 3-2

Vancouver manages single point as NHL playoff chase continues

B.C. legislature moving suspended staff controversy to outside review

Whale watching, Seattle Mariners trips billed as emergency preparedness, Speaker Darryl Plecas says

More people signing up for compulsory vaccines

Maple Ridge mom says public tired of hearing about measles

Thieves steal bottles, mattress from recycle depot

Chase RCMP still investigating theft of tires, generator from commercial garage

UPDATE: Man charged in stabbing of woman, off-duty cop outside B.C. elementary school

Manoj George, 49, is facing two counts of aggravated assault and two counts of assault with a weapon after the incident on Wednesday, Feb. 20.

Why do zebras have stripes? Perhaps to dazzle away flies

Researchers from University of Bristol look into why zebras have stripes

Cold War Cabaret offers song, slam poetry and sock puppets

Devon More returns to Shuswap with Berlin Waltz, March 16

Poll: More voters believe Canada doing worse under Trudeau government

22 per cent believed the country is doing better and 27 per cent said things are the same

Most Read