Due to labour shortages, small businesses in Canada missed over $38 billion in revenue opportunities last year from postponed and turned down contracts or sales.

According to a new report by the Canadian Federation of Independent Business, small businesses in the construction sector faced the most significant loss of opportunities, totaling over $9.6 billion in the last year.
In a news release, Laure-Anna Bomal, CFIB’s economist and the report’s author, says staffing challenges cause employers to work more hours, reduce their hours of operation and decline services and contracts.

CFIB believes a single policy change will not address these labour shortage pressures, but a collection of them could provide some relief. After reviewing what other jurisdictions are doing to address their shortages, CFIB has completed a report on how to address barriers to getting work. The proposals include solutions on how to better integrate workers of all ages into the labour force.

For example, to increase workforce participation among youth, governments could increase the prevalence of work-integrated learning in high schools. For middle-aged workers, the report suggests employment insurance program design shouldn’t create disincentives to work. As for experienced workers, CFIB states that governments should revisit existing tax policy and/or create a tax credit for career extension.