Quebec is the latest province to be facing a looming labour shortage, according to a recent report from the Conference Board of Canada.
The analysis, titled From Baby Boom to Labour Crunch: Quebec’s Impending Labour Shortage, said Quebec could be short 292,000 workers by 2025 and up to 363,000 by 2030. Overall labour force participation peaked in the province this year and will now gradually subside.
“Quebec is already facing a lack of workers with specific trade skills, and more generalized labour shortage could be felt in the broader economy as early as 2010,” says Marie-Christine Bernard, associate director, Provincial Outlook with the Conference Board.
By 2030, Quebec’s labour shortage will amount to 8.5% of its total labour force. Ontario’s potential labour shortfall is only 6.2%.
As a result, Quebec’s potential output—which is the maximum an economy can reach without triggering inflation—is projected to fall 1.5% by 2030.
In the report, The Conference Board suggests provinces facing shortages should improve training programs, increase access to education and provide fiscal support for investment in technology. Governments could also increase the labour force by attracting more skilled immigrants, streamlining the acceptance of foreign accreditation, and promoting higher fertility rates.
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