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Atlantic employers struggle to find workers as labour force growth stagnates think-tank
By STEVE PROCTOR Business Editor
The Chronicle Herald Halifax
Employers in Atlantic Canada will find it increasingly difficult to fill job openings and vie for new business opportunities as a labour shortage in the region gains traction, say researchers with a regional think-tank.
A commentary issued by the Atlantic Provinces Economic Council released Friday says labour force growth in the region has ground to a halt over the past two years, leaving employers struggling to fill vacancies created by retirements or small expansions.
An aging workforce and the loss of younger workers to the superheated economy in Alberta are the main reasons that the size of the region’s workforce has remained frozen at 1.2 million for two years. With the region’s overall population growth crawling along at 0.3 per cent annually, the council’s senior economist, David Chaundry, says limited labour growth could become more common in the future.

The implications are not lost on the business community. A national survey by the Canadian Federation of Independent Business in December found 38 per cent of small businesses are already functioning with fewer employees and ignoring new business opportunities. The same survey found that 68 per cent of small-business owners believe the labour shortage is going to get worse.
There are about 400 unfilled openings in Nova Scotia’s automotive repair and muffler replacement sector and some firms, such as precision-engineered parts maker Tub-Fab in Prince Edward Island, have been forced to farm out work to American subcontractors because they can’t find the workers to fill shifts.
Mr. Chaundry said that more than ever, individual businesses need to focus on human resources issues, including the ability to pay premium wages and benefits with compensation packages tailored to individuals or groups of individuals. For example, he said young students might be more responsive to policies that help them pay off their student loans faster. Older workers may be attracted by the option of part-time work.
“If you can create good opportunities for some of the 7,000 Atlantic Canadians between the ages of 15 and 34 that are leaving each year, many of them won’t leave, ” he said. “People move to where there are opportunities. If those opportunities are in their own backyard, they’ll stay around.”
Hewitt Associates, a human resources and outsourcing service, said the companies that are most successful in keeping their employees are those that think beyond the salaries they offer.
Senior Hewitt consultant Ted Edmond said signing bonuses and higher salaries offered in Alberta help to attract and retain workers, but other factors such as managerial support, recognition and opportunities for learning and development can help keep employees from straying.
In a recent survey, the company found that 77 per cent of employees working at companies recognized as top employers said they had emotional and intellectual commitments to the organizations.
Interestingly, the lowest level of employee engagement was in Alberta, where the greatest number of employment options exists. Quebec had the most engaged employees.
Another Hewitt report released earlier this week also found that companies with engaged employees have lower turnover rates, receive more applications for job openings and experience better business results.
Mr. Chaundry said the governments of the Atlantic provinces are all putting a greater emphasis on immigration to help offset some of the declines, but there is lots of work to be done on better recognition of immigrant credentials, removing restrictions against foreign students and language training assistance.
Governments might be able to offer short-term wage assistance programs that would run long enough for immigrants to prove they have the appropriate skills, but there is also a role for business and professional organizations in speeding up credential evaluation and developing processes that would allow greater mobility for immigrant professionals.
Dan Kelly, a vice-president with the Canadian Federation of Independent Business, says Canada is not welcoming the people with the skills businesses are asking for.
“The system is complicated, slow and frustrating,” he said. “Many employers give up or don’t even bother trying to hire temporary foreign workers or permanent immigrants.”
( sproctor@herald.ca)
http://thechronicleherald.ca/Business/551109.html