Canada’s Hiring Challenges: Job Seeker Shortage & Mismatch

Toronto, June 10, 2025 – If you’re considering making Canada your new home, it’s good to know what’s happening in the job market. Small businesses across the country are currently grappling with a shortage of qualified applicants. This happens as many skilled workers find it challenging to meet the specific expectations and skills required by employers.

According to a recent analysis by the Canadian Federation of Independent Business (CFIB), about 40% of small businesses reported that a lack of skilled labour is constraining their growth. Skilled labour refers to workers who have specialized training or expertise. Employers are not just looking for bodies but rather for candidates who fit their needs perfectly. In fact, around 69% of small and medium enterprises (SMEs) indicated that they struggle to find qualified applicants in their sectors, while over 54% have faced challenges in attracting any suitable candidates.

Even when talent exists elsewhere in Canada, various challenges such as provincial licensing and certification requirements can create barriers, particularly in rural areas or industries with fewer candidates. Moreover, half of small businesses feel unable to offer competitive wages or benefits, making it even harder to attract the right talent.

This creates a gap in Canada’s labour market. Not only do businesses face hiring difficulties, but even when they do fill positions, they often encounter productivity issues with new employees. This can mean more time and resources spent on training rather than focusing on core business operations.

To improve the match between job seekers and available roles, the government could take a few positive steps:

  • Incentivize Training: Providing tax credits and grants for SMEs willing to invest in training and upskilling their employees could enhance the workforce quality.
  • Support New Hires: Offering wage subsidies or Employment Insurance premium holidays for businesses hiring less experienced workers can help ease the financial burden.
  • Create Partnerships: Encouraging collaborations between small businesses and educational institutions to develop apprenticeship and internship programs can significantly bridge the skills gap.

In terms of labour mobility, making it easier for workers to move across provinces can also help. This can include:

  • Recognizing each province’s regulatory requirements for professions.
  • Allowing licensed professionals to work under their current qualifications while waiting for full registration in the new province.
  • Streamlining the registration process with set timelines for certification approvals could further alleviate some hiring pressures.

Overall, improving workplace training and making it easier for skilled workers to move can boost productivity and enhance Canada’s economic competitiveness.

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This article was adapted from an external news source for our readers’ benefit. The original version is available here.

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