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Small business owners working eight-day week equivalent due to staff shortages: CFIB

Survey finds labour shortages forcing many owners to work excessive hours to compensate
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A server clears a table on a patio at a restaurant, in Vancouver, on Friday, April 2, 2021. A new study by the Canadian Federation of Independent Business found the average small business owner is working the equivalent of an eight-day workweek due to staffing challenges, with the issue especially prevalent in Western Canada. THE CANADIAN PRESS/Darryl Dyck

A new study by the Canadian Federation of Independent Business says the average small business owner is working the equivalent of an eight-day workweek due to staffing challenges, especially in Western Canada.

The report, based on a survey of CFIB members last September, found 59 per cent of CanadaB次元官网网址檚 small and medium-sized businesses were affected by labour shortages, forcing the average owner to work 54 hours per week to compensate.

B次元官网网址淥wners have to work more hours, or they have to choose to have their employees work more hours,B次元官网网址 said CFIB economist Laure-Anna Bomal, a co-author of the report.

B次元官网网址淭hey have to turn down sales contracts, decrease service offerings. They are diverted from developing and implementing strategies to their business to improve, to grow their business, so thatB次元官网网址檚 really an issue.B次元官网网址

The study indicates the problem is getting worse. The number of small businesses affected by labour shortages has increased from 55 per cent in November 2021.

Among businesses experiencing labour shortages, almost three-quarters reported the owners had to work more hours and 54 per cent indicated their employees had to work more hours to make up for being short-staffed.

Bomal said the problem is particularly prevalent in the West, where 76 per cent of small business owners in Alberta affected by labour shortages are working more hours as a result, followed by 75 per cent each in Manitoba and British Columbia.

By sector, the share of owners working more hours to compensate for staff shortages was 84 per cent in hospitality and 82 per cent in agriculture.

B次元官网网址淲hat I didnB次元官网网址檛 really expect is the number of hours being that high,B次元官网网址 said Bomal, who pointed to potential solutions.

B次元官网网址淲e know that we really need to increase the labour pool of workers. What we can do, for example, is to target older workers, or simplify or improve the immigration processes.B次元官网网址

She said policymakers could also look to free up business ownersB次元官网网址 time by reducing red tape or incentivizing productivity.

B次元官网网址淪o for example, we can introduce tax credits to stimulate automation,B次元官网网址 Bomal said.

Statistics CanadaB次元官网网址檚 September 2022 Labour Force Survey found Canadian full-time and part-time employees over 15 typically work 35.6 hours per week. That means small business owners work 50 per cent more than the average employees, according to the report.

B次元官网网址擲ammy Hudes, The Canadian Press

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