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RCC: Searching for Solutions

A Changing Workforce: Labour

The landscape of the Canadian labour market is changing. It's growing older, becoming more culturally diverse and shrinking dramatically.

The good news is that employment in Canada has steadily increased since August 2006, with average monthly gains of 42,000. There were an estimated 392,000 more people working in February 2007 compared to a year before, and most of these new jobs were full-time positions. There were also more young people employed, bringing total gains over the past year to 48,000. The participation rate for workers aged 55 and over has surged to the highest level on record.

However, the strong competition for labour is affecting businesses in all sectors. A recent survey of small and medium-sized firms indicates roughly 250,000 job openings in the small business sector were left unfilled last year for at least four months. The labour crunch is most evident in Alberta and British Columbia, where more than one-third of small business owners are spending more in wages and benefits to attract and keep workers.

The situation is no different in the retail sector. In Alberta, for example, the retail industry employs nearly 220,000 people and retailers have had to work hard to keep pace with astounding growth — sales in 2006 increased 16.2% over sales in 2005. And with provincial sales growth expected to continue, retailers will have to hire 10,000 new workers over the next eight years. In response to this growth, RCC launched the Alberta Retail Labour Supply Task Force, which has more than 60 active members working towards a sustainable solution.

Right across the country, the retail industry will draw from the same labour pool as every other sector. Retailers need to find solutions through an industry-wide approach to common labour concerns. Already, retailers have filled vacant positions by looking beyond traditional sources to new pools of labour, such as retirees and immigrant populations.

Retailers have also found success in creating new incentives for prospective employees. By adopting a positive attitude to CSR practices, developing flexible schedules, providing relevant training, stressing career opportunities in retail and other engaging incentives, some retailers have secured the workers they need — for the moment.

Retail Employment by Province (2006)

Total All Industries
(000s)
Manufacturing
(000s)
Retail Trade
(000s)
% of Provincial
Labour Force
Rank by % in
Labour Force
Canada 17,592.8 2,245.4 2,110.0 12.0% 2nd
Newfoundland and Labrador 253.1 20.7 34.1 13.5% 1st
Prince Edward Island 77.1 7.4 9.3 12.1% 1st
Nova Scotia 480.0 43.0 67.6 14.1% 1st
New Brunswick 389.6 41.4 48.4 12.4% 1st
Québec 4,094.2 623.0 512.0 12.5% 2nd
Ontario 6,927.3 1,065.7 803.8 11.6% 2nd
Manitoba 613.5 68.6 73.5 12.0% 2nd
Saskatchewan 515.6 30.4 63.8 12.4% 1st
Alberta 1,937.5 140.7 219.1 11.3% 1st
British Columbia 2,305.1 204.6 278.4 12.1% 1st
Note: Statistics Canada's Labour Force Survey does not cover the Yukon, Nunavut or NWT.
Source: Retail Fast Facts, Retail Council of Canada, March 2007, based on Statistics Canada data.