Manufacturing labour shortage costing Canadian economy almost $13 billion

According to a report from an industry group, shortages of labour and skills have cost the economy over $12 billion in the last year.

The figure was contained in the annual labour survey by The Canadian Manufacturers andExporter. The sector lost $7.2 billion in sales and penalties for late delivery over the past year and lost $5.4 billion in investment because of canceled capital projects, according to a report.

There was an issue with signing you up. Try again.

Canada's economy will suffer if we don't find the workers we need.

According to the report, 62 percent of manufacturers have lost contracts and faced production delays due to a lack of workers. According to the report, 43 per cent of companies have delayed or canceled capital projects due to labour shortages.

More than 80% of manufacturers said they faced labour and skills shortages for two years in a row. In 2020 and 2016 it was 60 and 39 percent, respectively.

The report said that the challenge of labour and skills shortages is worsened by the effects of the Pandemic.

More than 70% of respondents said they increased wages to combat shortages.

Problems outside the sector are having a negative effect on manufacturers. Eight in 10 manufacturers say labour shortages in related sectors affect their business.

Most sectors have seen record high job vacancies in the last few months. There were nearly one million unfilled jobs in the second quarter, the highest number on record, according to Statistics Canada.

There were 82,500 unfilled manufacturing jobs in July according to the September report.

To fight the labour shortage, the government should provide more support to encourage automation, do more to promote skilled trades to secondary students, introduce and expand apprenticeship programs, and bring in more immigrants.

Dpaglinawan@postmedia.com and denise.pglnwn are email addresses.