Labor shortage puts pressure on local businesses


The economic effects of the COVID-19 pandemic continue to put pressure on businesses across the country as ongoing labor shortages are causing some businesses to operate at a standstill.

Both large and small businesses report having difficulty finding staff.

The Canadian Federation of Independent Business says only 40 percent of small businesses are doing normal sales right now, so offering a raise is something that just isn’t possible.

In addition, there are older workers who are approaching or have reached retirement age and have no intention of returning to work.

The current unemployment rate is around 7 percent, and with these numbers, employers should have no problem filling positions, but even with many people not working, companies cannot find people to. fill their vacancies. W

ith a labor shortage, many businesses are behind in the jobs they need to complete. On top of that, companies have turned down work because they don’t have the manpower to do the extra work.

This hinders the growth of a business and prevents it from expanding.

According to Statistics Canada, there were 731,900 job vacancies in the county in the second quarter of 2021.

A walk down any well-traveled road in Simcoe County and the surrounding area reveals many advertisements for companies seeking to fill positions.

Tottenham’s Flex-n-Gate manufacturing plant has openings for 50 new people and has a plan for a new assembly line in the coming months, but they are struggling to fill those positions.

The factory produces car jacks for various car manufacturers.

“Everyone’s hiring,” said Linda Carr, director of human resources at the plant. “F&P is recruiting, Honda is recruiting. At the moment Honda is looking for 700 people. We are a Tier 1 supplier. We supply directly to car manufacturers.

Even though jobs are available, Carr said the struggle to find employees has continued since the start of the pandemic.

“It has been going on for a year and a half. We generally hire from time to time as we have natural attrition such as retirements. We probably had ten people retired just because of house prices when they realized they could sell their houses for more than asking.

The positions at Flex-N-Gate are entry level assembly line jobs.

Mr Carr said the mindset of job seekers has changed, with some people applying for jobs but expecting to be able to work remotely from home rather than showing up at their workplace.

Flex-N-Gate advertised throughout the region telling people they had vacancies.

“All of the jobs we have are full time,” Ms. Carr said. “We sent flyers by post. We have three billboards. There is a movable billboard. We publish online – wherever we can publish, we publish. We have set up a referral program. So if an employee sponsors someone and they have 90 days left, they get $ 500 each. We also have a signing bonus. If we hire you on the street and you stay 90 days, you get $ 500.

Currently, plant workers live in several towns in the region and come from as far away as Barrie. With so many companies looking to hire, some job seekers are now placing resumes with multiple companies and holding out for the most money.

This makes it difficult for some places that cannot compete with the salaries of large companies in the area.


Comments are closed.