The labor shortage has become a matter of concern in this pandemic situation. Well, labor shortages basically happen when employers fail to fulfill the demands of the employees. Talking about the impacts of labor shortage, these are as follows:
- Rising pays in competitive industries.
- Increasing the inflation rate as the company passes the wage cost onto the consumers.
- Shortage of services and goods
- Companies basically move their production unit where they get a better worker supply.
Talking about the current pandemic situation, Canadian companies are facing problems in order to find workers. The economists are of the opinion that the situation will become worse over the course of time. They are somehow right as the labor shortage in Canada is worsening.
According to a survey done by The Harris Poll, Canadian firms have become desperate for workers. They are facing problems to fill the vacant roles. Almost 30% of companies are of the opinion that they have many vacant positions and they are unable to fill those. Companies are also of the opinion that they are experiencing skill gaps. They are having people who are lacking in skills and experience.
There are many companies that have not yet faced such a problem. However, in this pandemic situation, they are having a hard time filling the vacancies. There are many jobs that took weeks or days to fill. However, now, the situation gets changed. As a result, the companies are adjusting the delivery times and schedules. On the basis of the available workforce, they are making suitable adjustments.
There are many companies that are offering handsome pay in order to attract applicants. However, it is not changing the situation, and therefore, the turnover is remaining high. Dwayne Williams who is the Express franchise owner is of the opinion that companies are paying sign-on bonuses. However, with that sign-on bonus, the companies are still struggling. In this pandemic situation, the competition level remains on the higher side.
More competition refers to that employers are making new strategies in order to deal with the employee market. The present situation is giving so many opportunities to the potential workers. They are getting so many options and therefore, they have the full freedom to work for their favorite firms or companies.
On the other side, companies are saying that they do not have skilled workers and they are urging the government to provide more benefits to the skilled workers.