By Ketki Saxena
Investing.com -- Research from Statistics Canada suggests that the labour shortages currently faced by employers are predominantly centered on jobs requiring little education, rather than a lack of highly educated job seekers.
According to the study, the number of vacant positions requiring a high school diploma or less has exceeded the number of unemployed Canadians with equivalent education since the third quarter of 2021. The data showed 497,000 vacant positions requiring a high school diploma or less in the fourth quarter last year, compared to 296,000 unemployed Canadian-born individuals and 70,000 unemployed immigrants whose credentials suited the role.
On the other hand, it appears that positions requiring lower levels of education are experiencing the most significant shortages, with an increasing number of vacancies being left unfilled. The data shows that compared to 113,000 vacant positions in the fourth quarter last year that required a university degree, there were 227,000 unemployed Canadians and permanent residents that met the education criteria. Out of those, 123,000 were immigrants with a bachelor’s degree or higher.
While this development might seem counterintuitive, several factors could contribute to this trend.
First, the pandemic has led to a reshuffling of employment opportunities and priorities for many workers. Some have opted to leave low-paying jobs with little security for more stable and better-paying positions or to pursue further education.
Second, government support programs during the pandemic may have inadvertently disincentivized some individuals from re-entering the workforce in low-paying jobs. With financial assistance providing a temporary safety net, many found it more appealing to wait for better opportunities or focus on upgrading their skills.
Lastly, demographic shifts and an aging population might also play a role in exacerbating labour shortages in low-education jobs. As older workers retire, they may not be replaced by younger workers entering the labour market, creating a gap in these positions.