One in four Canadian businesses looking to sell or close: Report
“The labour shortage is having an impact because it’s very difficult right now to recruit people, so it’s limiting the growth for many companies.”
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“The labour shortage is having an impact because it’s very difficult right now to recruit people, so it’s limiting the growth for many companies.”
A new report released on Tuesday has revealed that one in four Canadian entrepreneurs are looking to either sell or close their businesses.
On top of this, business owners are looking to merge with more sizable businesses in a way to combat the labour shortage, according to Yahoo Finance.
Another key motivation is that businesses want access to crucial technology that they may not be able to afford.
"The labour shortage is having an impact because it's very difficult right now to recruit people, so it's limiting the growth for many companies," stated the commissioner of the report.
The Canadian economy is reeling from labour shortages brought on by the pandemic. 55 percent of businesses are having trouble finding workers. These businesses have had vacant positions for over three months.
Canada's labour shortage has long been affecting the post-pandemic recovery. This comes in spite of a 7 percent unemployment rate, meaning some Canadians simply do not want to work.
The hospitality industry is feeling this effect more so than other industries. However, this phenomenon is nationwide and no industry is getting off scot-free. It is worth noting, however, that labour shortages often lead to higher wages.
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