TORONTO – The Canadian Federation of Independent Business estimates small businesses lost more than $38 billion in revenue opportunities last year due to labor shortages.
CFIB economist Laure-Anne Bomal says staff shortages have led some employers to work more hours, reduce their hours and refuse services or contracts.
Bomal says that while that number doesn’t suggest the Canadian economy has lost billions of dollars, it’s still a significant amount of revenue that could have benefited small businesses.
According to the report, small businesses in the construction sector experienced the largest loss of potential business opportunities, estimated at $9.6 billion last year, followed by the retail sector with an estimated $3.8 billion and social services with a loss of $3 .3 billion US dollars.
Regionally, small businesses in Ontario experienced the highest potential revenue losses in 2022, estimated at $16 billion, followed by Quebec and Alberta.
CFIB offered solutions in its report, including work-integrated learning in secondary schools for youth, labor mobility for core workers aged 24 to 64, and career extension tax credits, among other policy proposals.
This report by The Canadian Press was first published Nov. 29, 2023.
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