David Dion on the Labor Shortage

Our founding partner, David Dion, was a guest on Le Fil on Noovo to discuss a major issue affecting numerous companies across Quebec and Canada: the labor shortage!

Do you know which industries are the most affected? Could international recruitment be a viable solution? What are the current trends in hiring, and how have employer and candidate expectations evolved?

These are just some of the fascinating topics covered in this discussion! Enjoy the interview!

Labor Shortage in Quebec: A Major Challenge in 2021

In 2021, Quebec’s labor shortage reached a critical level, with over 194,000 vacant positions. This crisis has had a significant impact on the province’s economy, particularly in the manufacturing sector, which estimates a loss of $3.5 billion in business opportunities.

As the labor force shrinks and business needs grow, Quebec’s manufacturers are facing major challenges—60% of them have had to turn down contracts or postpone expansion projects due to a lack of skilled workers.

The cost of labor has also surged, with wages increasing by an average of 9% in certain industries to attract and retain talent. In response to these challenges, businesses are rethinking their production strategies, focusing on automation and process optimization to maintain efficiency.

The Cost of the Labor Shortage

The financial impact of the labor shortage in 2021 was significant for Quebec’s economy. The manufacturing industry alone suffered an estimated loss of $3.5 billion, while across all sectors, total losses over two years soared to a staggering $18 billion.

To address this crisis, the Quebec government launched the Opération Main-d’Œuvre initiative in November 2021, committing an unprecedented $3.9 billion investment, including $2.9 billion in additional credits. The goal? To recruit 170,000 additional workers over five years in key industries.

The costs of the labor shortage also translated into:

• A significant wage increase, with salaries rising by an average of 2.1% in 2021
• Lost business opportunities for 94% of Quebec companies
• Major investments in training and workforce reskilling, estimated at $1.7 billion through 2025-2026
• Higher production costs, directly impacting the competitiveness of Quebec businesses

These financial losses highlight the urgency of implementing sustainable solutions to safeguard Quebec’s economic future.

Labor Needs: The Most Impacted Industries

The hospitality and food services sector faces the most severe shortages, with 7.6% of positions expected to remain vacant by 2025. The manufacturing sector follows closely, with 43.8% of businesses anticipating major hiring difficulties in the coming quarters.

Skilled labor is particularly scarce in construction and information technology, forcing organizations to rethink their talent attraction strategies. Industrial production workers are becoming increasingly rare, driving wages higher.

The healthcare industry is also struggling, with 35.1% of establishments reporting urgent staffing needs. As a result, many businesses are turning to international recruitment, a solution that Groupe RP actively explores for its clients.

Concrete Solutions to Address the Labor Shortage

Automation is emerging as a promising avenue, allowing companies to optimize productivity despite workforce shortages. Quebec manufacturers who have embraced automation report an average 23% increase in operational efficiency.

Accelerated training and skill development are also key strategies. Groupe RP has implemented mentorship and continuous training programs to quickly qualify new talent while strengthening workforce retention.

Hybrid work models are gaining traction, offering employees greater flexibility. This approach is particularly appealing to young professionals, resulting in a 34% higher retention rate for companies adopting these practices.

Action Main-d’Œuvre: A Montreal-Based Solution to the Talent Shortage

As the labor shortage continues to reshape Quebec’s job market, Action Main-d’Œuvre has positioned itself as a key strategic partner in Montreal. This non-profit organization stands out for its expertise in supporting individuals with autism or intellectual disabilities, providing businesses with access to an underutilized yet highly capable workforce.

Their holistic approach includes not only assessing candidates’ skills and supporting their professional development, but also guiding employers in optimizing their workplace environments.

Through tailored services, ranging from needs analysis and customized training to ongoing workplace support, Action Main-d’Œuvre is a driving force in solving recruitment challenges. Their innovative collaboration model allows Montreal businesses to turn workforce shortages into tangible opportunities, while fostering diverse and high-performing teams.