Voice of Business: First-in-a-Generation Labour Market Shift Leaves Jobs Vacant
/
Workers hold a level of bargaining power not seen in a generation as labour shortages are creating pressure on wages, working conditions and benefits. Many employers and employees alike have not encountered a labour market shift like this. Employers will need to continue to be flexible in negotiations in order to fill vacancies.
For the last 40-odd years, employers held the market over employees as inflation rates soared during the 1970s and 1980s and industries found cheaper alternatives through offshoring, especially after China joined the World Trade Organization in 2001. Because of these shifts, workers struggled to find jobs and wages were suppressed as employers held most of the bargaining power. As a result, companies found it easier to hire and retain. That is not the case, however, in today’s working environment.
According to Statistics Canada’s December Labour Survey, more Canadians are working or actively seeking work. The rate of workers aged 15 or older has been rising year-over-year by about 3 per cent, the unemployment rate dropping by 0.1 per cent to 5 per cent, and employment increasing by 0.5 per cent. Regardless of these statistics, more than one-third of Canadian employers are expected to face labour shortage issues in the next few months to years due largely to the rapidly aging working-age population.
As our aging workforce begins to retire, job vacancies in our country are at an all-time high. Despite the trends in our neighbouring country to the south, Canada’s workforce has not seen the same ‘Great Resignation’ trend. More than 1 in 5 workers in Canada are between 55-64 and from 2016 to 2021, the number of those 65 and older increased by 18.3 per cent to 7 million according to another Statistics Canada report. Our labour market shortage isn’t caused by the ‘Great Resignation,’ but rather by the ‘Great Retirement.’
Employers and industries that are struggling to fill vacancies will need to adapt their reopening and rehiring plan to offer more lucrative and competitive wages and benefits. The early pandemic shifted the mindset of workers as mass layoffs and hiring freezes caused many to reevaluate their work and worth. Now, according to this article from Ranstad, these are the top items employees are seeking in the post-pandemic world:
Flexible work-life
Having the ability to set their own schedules
2-3 working from home days
Recognition and reward
Celebrating ‘small wins’ and showing appreciation for the employee
Opportunity for growth
Additional training following years of pandemic working
Salary increases
Shifting of responsibility
Resources for remote work
Funding or resources provided for home office setups
Empathetic Leadership
Accommodative and supportive leadership with a focus on mental wellbeing
Safe workspaces
PPE and health and wellness programs to keep teams happy
Workplace culture
Collaborative projects
Team building initiatives
Effective communication
