Our most requested topic for 2022
"As we recover from the pandemic, labour shortages will become the new normal. Employers will have to find new ways to attract talent and retain their existing workforce. Building capacity through employee engagement and automation will allow organizations to succeed in this new work environment."
The skills shortage will continue for several years, with several factors contributing to the demand. Employers will need to adjust their policies and management style to address this challenge.
76% of employers are currently having difficulty in attracting employees compared to 26% last year. (Willis Towers Watson)
1,000,000 Job vacancies in Canada (The highest since recording started) 11.5 million job vacancies in the USA
All G8 countries are seeing skills shortages which will heat up global competition for resources
8,500 Canadians will retire each week, 900,000 retired during the pandemic
The pandemic has had a negative impact on people immigrating to Canada.
Employers and employees work in a new reality as we find our way back from the pandemic. As much as we may like the return to a 2020 work environment, it may never return to the way it was; in fact, many of the changes we experienced would have occurred anyway, but the pandemic brought them to us faster.
The skills shortage was predictable; what we did not see coming would be the pandemic's impact on intensifying the skills shortage. Let me walk you through some of the data to better understand today's employment numbers.
Canada will soon be fully employed, with the current jobless rate approaching 5%. So, what does that even mean? From an employment perspective, the people left for hire don't match the positions available in the marketplace; this is the beginning of what we are experiencing as a skills shortage. With the current jobless rate, coupled with the fact that we have more than a million job vacancies, Canada, is about to witness the biggest disrupter we have seen in decades. The real problem isn't our jobless rate; it is more about what is happening in the US as their rate sinks under 4%, and they have over eleven million open jobs. They will be looking north of the border to attract workers to help fill their current and future employment needs.
The retiring baby boomers were a very predictable but manageable number. We knew it would happen; plenty of available data showed how many Canadians would reach the age of sixty-five each year. However, for some reason, many ignored facts, and during the pandemic, Canada witnessed approximately nine hundred thousand baby boomers retire and leave the workplace. We will continue to see an additional eighty-five hundred exit the workplace every week this year. These numbers are staggering when you think of how small the Canadian workforce is compared to other G8 countries. With a declining population, there is no hidden generation coming behind the boomers to fill the vacancies as they retire.
So why does it matter the boomers are retiring? Well, it's a numbers game, and the boomer is our most significant generational cohort, and their leaving is a big deal. So, people might think there are many young people to fill the void, but the opposite is true; each year the boomers leave, fewer people will be working, supporting the retired people. We now have more older people than young people. We are now feeling the crunch of a declining population.
Yes, immigration is a big part of the solution, but the pandemic has put us further behind our progression. During the first year of the pandemic, we saw immigration reduced from three hundred and forty-one thousand in 2019 to one hundred and eighty-five thousand in 2020. We were doing okay; we kept on top of things between young people entering the workforce and new immigrants moving to Canada.
The problem with the numbers was that we had no wiggle room if things went sideways ( and sideways they went). To make matters worse, as many as two hundred thousand emigrants left Canada to return to their country to be with their families during the pandemic. The bottom line is we fell behind on immigration, and many other industrial countries did the same, and now they are all looking for immigrants to fulfill their employment requirements.
Are you ready for the newest shortage and price hike? It's not housing or lumber. The latest deficit will be human capital, which will be widespread and felt by every business sector. This labour shortage will make the old ways of attracting, retaining and inspiring obsolete. Employers will need to find new ways to attract employees, hang on to the ones they have and find ways to build capacity with their existing team. In addition, many employers will see the globe as their recruitment opportunities; you now will have to compete against your local competition for people along with places like New York, the UK, or Brazil.
Many employers have changed the way they work, and as we come out of the pandemic, employers and employees will look for a new normal. What will that look like for you? One thing is for sure; it will never go back to the way it was before the pandemic. Employers and employees will need to adapt to the new reality in the job market. Research shows some interesting trends that will undoubtedly impact your organization as we come out of the pandemic.
We are heading into some very challenging times regarding the Canadian employment market. Join Eddie LeMoine as he guides you through employment trends and why the old ways of managing people may not work in the future. Eddie will help you understand today's employment challenges and how to be best prepared for a successful future.
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