Quebec Small Business Suffering Labour Shortages

Labour shortages are hitting Quebec businesses hard and have cost them close to $10.7 billion, says the Canadian Federation of Independent Business (CFIB) in a ‘Research Snapshot.’ "We knew the labour shortages were having a very negative impact on small business owners, who have to work longer hours, as do their employees, and are forced to turn down contracts and business opportunities. Today, we can put a figure on the losses suffered by small businesses: nearly $11 billion in one year! They could have used that money to recover, grow, and boost their regional economies," says François Vincent, CFIB's vice-president for Quebec. The construction and professional and administrative services sectors have losses in excess of $2 billion. Small businesses in hospitality and retail recorded losses of nearly $1 billion. In the wholesale and transportation sectors, the losses total $1.2 billion. Lack of personnel is cited by 86 per cent of Quebec SME owners as the most difficult issue to overcome in 2022, just after rising costs (energy, inputs, etc.), which were mentioned by 87 per cent. This is a major problem that generates additional costs for small businesses, as one of the primary effects of labour shortages is to drive up wages.