Quebec lost $7 billion last year due to labour shortage in manufacturing sector, group says
Quebec's economy is losing about $7 billion because of a labour shortage slowing down activity in the manufacturing sector, according to estimates from an association that represents the sector.
Nearly all of the sector's companies — 98 per cent — say they have vacancies to fill, according to a survey of 300 of its members by the Quebec Manufacturers and Exporters (MEQ). On average, respondents had 42 vacancies in their companies.
"Over the past year, Quebec manufacturers have $7 billion left on the table because they don't have the workers they need," said MEQ president and CEO Véronique Proulx at a press conference Wednesday. "We can't find the hands and skills, the brains we need, to keep our plants running."
The $7 billion in missed opportunities would represent about 3.8 per cent of Quebec's total manufacturing sales of $183 billion.
There were 32,000 job openings in Quebec's manufacturing sector in 2022 in the second quarter, according to Statistics Canada data. This is up from 30,700 in the first quarter, three months earlier.
Hiring in the manufacturing sector is like trying to "fish in an empty lake," according to Proulx. This lack of workers is causing manufacturing companies to lose important business opportunities, she warned.
She noted that 75 have delayed or cancelled some investments.
Aerospace supplier Meloche Group, for example, has been forced to give up contracts worth an estimated $12 million because of the lack of personnel, said Anne-Renée Meloche, vice-president of human resources.
The company has 75 active foreign recruitment requests, but Meloche deplored the cumbersome administrative process.
"This year, what we have seen is the shortage of manpower, but especially the slowdown, the slowness, the complexity for us and for all Quebec employers with respect to immigration and international recruitment," Meloche said.
"These kinds of missed opportunities are leading some companies to consider moving their production outside of Quebec. Three out of 10 companies say they have considered moving part of their operations abroad or doing business with foreign suppliers. When you move operations outside Quebec, it's very rare that you bring them back," Proulx added.
The trend would have nothing to do with outsourcing, which had led companies to move their production to Asia, among other things, because of lower labour costs.
"We're elsewhere," said the MEQ president and CEO. "There are companies that plan to raise wages. It's really not an issue of wages and cost. What we are looking for is competent people to work in our plants."
The MEQ is asking the government to increase the number of qualified workers available for the manufacturing sector. It also means facilitating and accelerating the arrival of temporary foreign workers.
The association is also asking the government to adjust the training offer to "target in priority" the manufacturing sector and to provide more support to companies that want to automate their production line.
The MEQ is not the only business association trying to measure the financial impact of the labour shortage. In August, the Canadian Federation of Independent Business (CFIB) estimated that the labour shortage would have forced Quebec SMEs to give up nearly $10.7 billion in contracts.
This report by The Canadian Press was first published in French on Nov. 16, 2022.
CTVNews.ca Top Stories
Police arrest 3 Indian nationals in killing of B.C. Sikh activist Hardeep Singh Nijjar
Three people have been arrested and charged in the killing of B.C. Sikh activist Hardeep Singh Nijjar – as authorities continue investigating potential connections to the Indian government.
Grandparents killed in wrong-way crash on Hwy. 401 identified
A 60-year-old man and a 55-year-old woman killed in a wrong-way crash on Highway 401 earlier this week have been identified by the Consulate General of India in Toronto.
Quebec man who threatened Trudeau, Legault online sentenced to 20 months in jail
A Quebec man who pleaded guilty to threatening Prime Minister Justin Trudeau and Premier François Legault has been sentenced to 20 months in jail.
TD worst-case scenario more likely after drug money laundering allegations: analyst
TD Bank Group could be hit with more severe penalties than previously expected, says a banking analyst after a report that the investigation it faces in the U.S. is tied to laundering illicit fentanyl profits.
Human remains found in rural Sask. possibly a decade old, RCMP say
RCMP say human remains found in a rural area in central Saskatchewan may have been there for a decade or more.
2 charged after police find 'concerning and diverse' explosives at Manitoba home
Winnipeg police say they have arrested two people in their 20s after a large amount of explosives were found in a home outside of Winnipeg, Man.
Canadian doctor concerned new weight-loss drug Wegovy may be used inappropriately
As Wegovy becomes available to Canadians starting Monday, a medical expert is cautioning patients wanting to use the drug to lose weight that no medication is a ''magic bullet,' and the new medication is meant particularly for people who meet certain criteria related to obesity and weight.
Spain abolishes national bullfighting award in cultural shift
Spain scrapped an annual bullfighting award on Friday, prompting a rebuke from conservatives over a backlash against a centuries-old tradition they see as an art form but which has run into growing concern for animal welfare.
Drew Carey is never quitting 'The Price Is Right'
Drew Carey took over as host of 'The Price Is Right' and hopes he’s there for life. 'I'm not going anywhere,' he told 'Entertainment Tonight' of the job he took over from longtime host Bob Barker in 2007.