The labor shortage in the manufacturing sector has cost the Canadian economy nearly $13 billion

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Labor and skills shortages among manufacturers and exporters have cost the economy nearly $13 billion in the past year alone, according to a report by an industry group released this week.

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The figure was contained in the Canadian Manufacturers & Exporters (CME) annual labor survey, which compiled responses from 563 manufacturing companies across the country. The industry reported $7.2 billion in lost sales and late delivery penalties over the past year and recorded a $5.4 billion investment loss due to construction projects. investment postponed or cancelled, according to the report.

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« If we don’t find the workers we need, Canada’s economy will suffer, » CME President Dennis Darby said in a press release.

The report says 62% of manufacturers have lost or declined contracts and faced production delays due to a lack of workers, with companies surveyed reporting combined losses of $1.1 billion over the past of the past year, or $2.8 million per company. He also said that 43% of companies have postponed or canceled capital projects due to labor shortages.

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More than 80% of manufacturers reported facing labor and skills shortages for two consecutive years. This figure is up sharply from 60% in 2020 and 39% in 2016.

« The ongoing challenge of labor and skills shortages continues to be exacerbated by the fallout from the pandemic, » the report said.

He added that more than 70% of respondents said they had increased salaries and benefits to combat these shortages.

Issues outside the industry are also negatively affecting manufacturers. According to the report, eight out of 10 manufacturers say labor shortages in related sectors, such as transportation and logistics, are also affecting their businesses.

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Job vacancies have reached record highs in most sectors in recent months. Statistics Canada’s latest quarterly job vacancies report says there were nearly a million job vacancies in the second quarter, the highest quarterly number on record.

The agency’s September report said manufacturing vacancies remained high in July, with 82,500 vacancies in that month alone.

The CME said that to tackle the labor shortage, the government should provide more support to encourage automation, do more to promote skilled trades among high school students, introduce and expand vocational training programs. learning and attract more immigrants.

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