The title says it all: help wanted.
The report released this week by CFIB (Canadian Federation of Independent Business) with first quarter results on job vacancy in Canada should have us worried here in Prince George.
While job vacancy is steady across most of Canada, a disturbing trend is growing in B.C.
Among all the provinces, B.C. businesses have reported the greatest increase in the number of vacant jobs - positions left unfilled for more than four months.
While the national average remained the same this quarter at 2.6 per cent, B.C. businesses reported a provincial average of 2.8 per cent which is up by 0.2 per cent from last quarter and has steadily increased since 2009 when it was under two per cent.
Not only are the B.C. job vacancy numbers increasing more quickly than any other province in Canada, small businesses (less than 20 employees) are reporting double the vacancy rates as compared to midsized businesses (more than 50 employees).
When you combine these grim stats for small business with the increase in B.C. job vacancy overall, it creates an incredibly challenging situation for small businesses.
Add a strong regional economy in north central B.C. and lower-than-average unemployment numbers to the mix, and you have a perfect storm brewing smack dab in good old Prince George.
What does all this mean for local small businesses?
What will the repercussions be if the numbers continue on this trend?
The biggest outcome will be an overall increase in cost for small business.
Standard economic theory tells us that in tight labour markets, wage adjustments are necessary and let me tell you...they ain't going down folks.
This will ultimately lead to higher labour costs for small business as they bolster their economic edge by offering higher financial compensation to the few available skilled employees they can find.
Another cost increase will result for small business when they are forced to look at the readily available, yet under skilled or incompatible labour force, and then invest in training and skill development of those available employees.
If you can't find the people you're looking for, you can pay to train existing staff or available workers into the positions you require. It's just a matter of money; money that many small businesses do not have with tighter profit margins than big business.
So, while business optimism is on the rise for our province and region, the economic opportunities presenting themselves all around us in Prince George are only positive if and when we can start taking down our help wanted signs.
Until next week, stay in the black and keep coming back.
